Caterpillar raises expected impact of tariffs, says full-year costs could hit $1.8B

[Construction Equipment]
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Caterpillar (NYSE:CAT [https://seekingalpha.com/symbol/CAT]) -2.7% post-market Thursday after disclosing it now expects the net impact from tariffs in the $1.5B-$1.8B range this year, up from a previous estimate of $1.3B-$1.5B, as well as a $500M-$600M impact in Q3, compared to its earlier outlook for $400M-$500M.

Including the net impact from incremental tariffs, Caterpillar (NYSE:CAT [https://seekingalpha.com/symbol/CAT]) said in an 8-K filing [https://seekingalpha.com/filing/10357848] that it now expects its full-year adjusted operating profit margin to come in near the bottom of the target margin range, although it left its full-year sales outlook unchanged.

"While the company continues to take initial mitigating actions to reduce this impact, trade and tariff negotiations continue to be fluid," Caterpillar (CAT [https://seekingalpha.com/symbol/CAT]) said.

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