Caterpillar, one of the world’s biggest makers of construction equipment, is facing a slowdown in China while grappling with the impacts of higher costs to make its iconic yellow machines, reports Bloomberg.
Caterpillar, often viewed as an economic bellwether, said Tuesday in its second-quarter report that construction equipment sales fell in Asia Pacific, citing lower revenue from end users in China. The company brought in $13.5 billion in revenue from machinery, energy and transportation, missing analysts’ estimates.
Caterpillar’s results come as the producer grapples with headwinds including supply-chain troubles and surging power costs across Europe as well as COVID-related shutdowns and property woes in China. China’s real estate crisis has ballooned this year, engulfing developers to banks and forcing Beijing to temper its growth ambitions in a potential blow for steelmakers and miners.