LONDON (ShareCast) - (Sharecast News) - Heavy machinery manufacturer Caterpillar reiterated its disappointing guidance for the full year on Tuesday, blaming its woes on rising costs coming as a result of the US and China's tit-for-tat trade war.
Caterpillar doubled-down on its previous earnings guidance of $11 to $12 per share, but analysts had anticipated the firm would raise its previous forecast to somewhere in the vicinity of $11.65.

Adjusted earnings per share for the three months ended 30 September came in 46% higher year-on-year at $2.86, just ahead of the $2.85 expected by analysts, while the 18% stronger revenues of $13.51bn topped expectations of $13.29bn.

Caterpillar told investors that sales of its excavators, bulldozers and other heavy machinery rose 19% to $12.76bn for the quarter but warned investors that the impact of tariffs for its third-quarter material costs had come to roughly $40m.

The Illinois-based outfit highlighted the tariffs of 25% on steel imports and 10% on aluminium imports implemented by the Trump administration in an attempt to stop harm coming to American companies as being one of its major hindrances throughout the quarter.

"Manufacturing costs were higher due to increased material and freight costs. Material costs were higher primarily due to increases in steel prices and tariffs," Caterpillar said.

"For the full year of 2018, we expect the impact of recently imposed tariffs will be at the low end of the previously provided range of $100m to $200m."

At the close, Caterpillar had lost 7.71% to $118.98 each.

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