The CEO of caterpillar has said that they are expecting that the uncertainty in the global economy is going to pressure the sales for the users in the year 2020 and make the dealers reduce their inventories. The statement has come out recently in the wake of the stocks of the company seeing major fall on this Friday.
On Friday, the shares of the company had gone down by 3% in New York and registered a weekly loss 0f 6.4% and this is the most it has seen since the month of May. The United States steel has fallen by 3.5%. There was a decline in the companies which are steel related to a lowest level since the last year in October.
Although there was a surge in the global stocks in the last quarter on the hopes of a pact between United States and China is going to boost the demand for commodity and help in the revival of business investment as well as the manufacturing sector, the Dow Jones had erased the gains which it had registered in the early parts of 2020 on this Friday.
There has been an attempt by Caterpillar for cutting its costs and also trimming its inventories as the demand in a lot of its main markets is trailing its production. The 2020 outlook for the company has signaled a lot more difficulties for the sales of machines and that had anyway fallen most in the last three year at the time of ending of last year. This view is in consistency with the economic figures of United States showing a spending drop off which is going to affect the company too.
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