Caterpillar reports big drop in profits amid murky outlook

NEW YORK: Caterpillar reported a steep drop in second-quarter profits Friday amid weak demand from industrial clients and said its overall outlook remained clouded by the coronavirus.

The global industrial machinery manufacturer reported a big drop in quarterly earnings and said it had yet to see a pickup in demand for mining equipment despite higher copper prices. The company, which withdrew its full-year projection in March at the height of coronavirus lockdowns, said there are still too many unknowns to reinstate a forecast.

"Our financial results for the remainder of 2020 will depend on the duration of the pandemic and its impact on global economic conditions," Chief Executive Jim Umpleby said on a conference call with analysts. Revenues fell in all three of Caterpillar's divisions, which manufacture machines for the construction, energy and mining industries.