On Tuesday, Donald Trump signed an ordinance to soothe some American duties on car and car parts. However, it is still unclear what influence on the US economy will have wider duties. Caterpillar expects that in this quarter it will incur additional costs from $ 250 million. up to $ 350 million in connection with the global customs war started by the Trump administration.
See also: Donald Trump's duties stimulated imports. Record minus in the foreign trade of the USA
According to Associated Press, in the first quarter Caterpillar revenues fell to $ 14.25 billion. from $ 15.8 billion a year earlier. The results were even lower than the analysts' forecasts who expected $ 14.54 billion.
The company also reported that the sales volume dropped by $ 1.1 billion, and dealers' supplies increased in this quarter by $ 100 million, which is a significant decrease compared to an increase in $ 1.4 billion. in the previous period.
The machine manufacturer reported on Wednesday that the forecast takes into account short -term actions, which he has already taken to alleviate the upcoming cost storm. The company's managers admitted that Caterpillar is looking at long -term solutions, but he hopes that he will first get a lighter picture of how the tariff fight will go.
The equipment manufacturer has calculated the costs that will cause duties
“Many of these activities require more time to implement, they are more difficult to reverseand therefore require greater clarity and certainty about the long -term environment around the customs, “said operational director Joe Creed, whose words are cited by the Associated Press.
About half of the additional costs will be incurred in the Caterpillar construction industry segment, one quarter will hit the raw material industry unit, and the rest will affect energy and transport.
See also: Trump's deadly duties? “Up to 80 % of companies will disappear from the market”
The company also admitted that if the current wave of customs persons persists, sales will probably fall this year instead of maintaining a constant leveland the margins will be smaller.
Earlier this month Caterpillar Inc. He announced that the president and general director of D. James Umpleby III would become an executive president on May 1. Operational Director Joseph Creed will replace Umpleby as a CEO and become a member of the board.
