Caterpillar cuts outlook as second quarter earnings disappoint

Caterpillar Inc. once again cut its earnings forecasts for 2016 as it prepares to face more job cuts due to lessening demand for its mining and energy equipment.

In a statement on Tuesday, the company said full-year restructuring costs will be about $700mn, up from the $550mn previously forecast, as the company makes new layoffs.

Caterpillar posted quarterly earnings of $1.09 versus analyst estimates of 96 cents a share. Revenue was $10.3bn against estimates of $10.1bn, but it reported a lower quarterly net profit.

It cited uncertainty within political and economic spheres as a reason for the cut.

"World economic growth remains subdued and is not sufficient to drive improvement in most of the industries and markets we serve," the Caterpillar statement read.

"Global uncertainty continues, and the recent Brexit outcome and the turmoil in Turkey add to risks, especially in Europe," it added.

Although certain results may have been cause for optimism from its second quarter, CEO Doug Oberhelman was not very optimistic about the second half of the year.

"Despite a solid second quarter, we're cautious as we enter the second half of the year. We're not expecting an upturn in important industries like mining, oil and gas and rail to happen this year," Oberhelman said.

The company said revenue for 2016 is expected to bne between $40bn and $40.5bn, with profit outlook around $2.75 a share.