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Caterpillar Suspends Operations at Certain Facilities; Withdraws 2020 Guidance

The coronavirus pandemic has sapped demand for the construction and mining equipment bellweather.

Source: Caterpillar

(Reuters) – Construction and mining equipment maker Caterpillar Inc said on Thursday it was suspending operations at some facilities and withdrawing its 2020 outlook as it struggled with the impact of government-ordered shutdowns on its plants and supply chains.

The company said it may suspend operations at more facilities, adding that it continues to run the majority of its U.S. domestic operations and plans to continue operations in other parts of the world .

Caterpillar said it was executing business continuity plans and warned of likely supply constraints, and that it could use alternative sources to redirect orders to other distribution centers.

U.S. factory manufacturing activity slowed in February as new orders contracted, reflecting worries about supply chain disruptions related to the fast-spreading coronavirus outbreak, which has revived financial market fears of a recession.

Caterpillar in January said it expected adjusted profit in 2020 in the range of $8.50 to $10 per share on the back of a further decline in equipment sales. The forecast is lower than $11.06 per share last year.

Reporting by Sanjana Shivdas, Rachit Vats in Bengaluru; Editing by Vinay Dwivedi.

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Source: Reuters

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