Caterpillar ( NYSE: CAT ) on Tuesday warned of a bigger drop in demand for its excavators in China amid the country's mortgage crisis, which already dragged down Q2 Asia/Pacific construction equipment sales by 17%.
The company predicted a continued uncertainty in China, which typically accounts for 5%-10% of its overall revenue.
CEO Jim Umpleby and executives on Caterpillar's ( CAT ) Q2 earnings conference call also said they see no improvements in supply chain problems and no moderation in cost pressures .
"We continue to incur additional costs due to factory inefficiencies and freight expenses," Umpleby reportedly said, adding that coping with supply chain snarls is "still hand-to-hand combat."
Caterpillar ( CAT ) is the day's biggest loser on the Dow Jones index, -3.6% , after Q2 profits fell in its construction and energy and transportation segments .
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Caterpillar warns on slowing China demand, continued supply chain snarls