Caterpillar Inc.’s (CAT) shares fell more than 8% on Tuesday, as the mining and construction equipment maker again showed signs of weakness tied to rising steel and input costs -- which ultimately bear connection to U.S. tariffs.
Caterpillar has already lost nearly 21% of its market value in October, as analysts were disappointed with earnings and its outlook for the rest of the year. As tariffs boosted metal costs and trade frictions fueled demand concerns, Caterpillar was largely unable to pass these costs on -- eroding profitability.
Caterpillar in its recent government filing revealed that the company lost nearly $40 million in third quarter of 2018 owing solely to the recently imposed tariffs. For the full-year, the company is expecting tariff-related losses in the range of $100 million to $200 million on the lower-end. To minimize the impact of the rising raw material prices, the company has already informed all its dealers there would be an increase in prices in the range of 1% to 4% worldwide starting January 2019.
Despite posting a satisfactory earnings number in Q3 2018, a choppy future outlook has proven negative for Caterpillar. Total sales and revenue for Caterpillar stood at $13.5 billion for Q3 2018 compared to $14 billion in the previous quarter.