July 24, 2013
Updated Jul 24, 2013 at 6:27 PM CST
PEORIA, Ill. -- Caterpillar Incorporated is reporting reduced profits, sales and revenues for the recently ended second quarter.
The company says profit was $960 million in the second quarter.
That is down 16 percent from nearly $1.7 billion in the second quarter of last year.
Sales and revenues were $14.6 billion.
That is down 43 percent from the second quarter of 2012.
Caterpillar officials said about half of the decline was due to changes in dealer inventory.
"So dealers are selling to customers out of their inventory and then not putting orders back as quickly as Caterpillar,” said Caterpillar Spokesperson Jim Dugan. “So as it turns out right now we Caterpillar, in our core construction and machinery business, are under selling in user demand. There is demand out there, but the dealers are selling out of inventory and in the short term, that's also having an impact on our results."
Despite reduced profits, sales and revenues, Caterpillar officials said they expect profit to improve in the second half of this year but until they company employees will be asked to tighten their belts.
"A number of different actions are taking place, temporary layoffs among them, reduced travel and reduced spending on training, and in some cases programs may be slowed or paused, as we work though this challenging year," said Dugan.