Caterpillar Q2 profit down 21pc
Ap, Peoria
Shares of Caterpillar Inc. tumbled Friday as the heavy equipment maker posted profit that fell 21 percent, missing Wall Street expectations amid weak North American machinery sales and higher-than-expected operating costs. The company's shares, which had risen to record highs over the last month, fell $3.78, or 4.4 percent, to $83.20 Friday. Shares, which have traded in a 52-week range of $57.98 to $87, had dipped to $78.26 before rebounding in late trading. Caterpillar, one of the world's largest heavy equipment makers, said net earnings fell even though revenue rose 7 percent to $11.36 billion -- a company record for the second quarter -- from $10.61 billion last year. The company cited sluggish housing construction and engine sales in North America, higher than expected operating costs and a planned reduction in inventories for the decline.
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