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Stock Alert: Caterpillar Drops Again

(RTTNews) – Heavy-equipment maker Caterpillar Inc. (CAT) saw a slump again in its share price in the past one month. It is down more than 15% in a month.

Caterpillar had suspended operations temporarily at certain facilities in the early months of this year due to Covid-19 pandemic imposed supply chain issues, weak customer demand or government regulations.

The Fortune 100 company manufactures construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.

Although the company could reopen nearly 75% of its primary production facilities by mid-April, it sees its current second quarter to be weaker than the first quarter. The company had withdrawn its financial outlook for 2020 in March, citing uncertainty of Covid-19 impacts.

According to Jim Umpleby, Chairman of the Board of Directors and Chief Executive Officer, the financial impact due to Covid-19 would linger as long as the pandemic continues.

On April 28, when the company reported first-quarter results, sales were down 21% year-over-year at $10.6 billion, on weak demand. Caterpillar has about 10% revenue exposure to China.

Monday, Caterpillar shares have lost $3.16 or 2.85% before closing at $107.72. It has traded in the range of $87.50- $150.55 in the past one year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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