Caterpillar expects a US$1.5bn to 1.8bn hit from tariffs (up from prior 1.3 to 1.5)

Caterpillar expects a US$1.5bn to 1.8bn hit from tariffs (up from prior 1.3 to 1.5)

• Disclosure from CAT

Caterpillar shares dropped in after hours trade.

• The firm disclosed it now expects the net impact from tariffs in the US$1.5bn to 1.8bn range, from 1.3 to 1.5 previously
• expects a US$500mn to 600mn impact in Q3 alone
• expects its full-year adjusted operating profit margin to come in near the bottom of the target margin range
• left its full-year sales outlook unchanged
• "company continues to take initial mitigating actions to reduce this impact", but "trade and tariff negotiations continue to be fluid"