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Shares of the heavy equipment maker, whose performance is seen as a barometer for global industrial activity, fell 3% before the bell.
Western firms have taken a hit from U.S. sanctions on Russia, which made it impossible to operate in the country following its invasion of Ukraine in February. Caterpillar (NYSE:CAT) decided to suspend its operations in March.
The industrial bellwether’s sales in Europe, Africa and Middle East regions fell about 3% to about $3 billion in the second quarter. All the rest of the regions reported higher sales.
“Our second-quarter results reflect healthy demand across most of our end markets,” Chief Executive Jim Umpleby said.
Revenue in the three months through June rose about 11% to $14.25 billion, but missed the analysts’ average estimate of $14.35 billion, according to Refinitiv data.
The company’s sales have been capped by raw material shortages and elevated freight costs, but strong equipment demand has allowed it to raise prices.
However, operating profit margins fell to 13.6% from 13.9% in the same period a year ago, while adjusted profit rose to $3.18 per share, above expectations of $3.01 per share.
