Caterpillar reported sales and revenues down US$1.975 billion in 2Q16 to US$10.342 billion on the back of continued weak commodity demand globally and economic weakness in developing countries.

Sales of both new equipment and aftermarket parts fall, although most of the decrease was for new equipment.

All regions were hit. Latin America took the worst fall with sales down 31% on the back of significant decreases in Brazil and Mexico. Sales were down 16% in North America, 15% in EAME and 13% in Asia-Pacific.

As a result, operating profit dropped by 41% to US$785 million from US$1.333 billion in 2Q15. Price realization and restructuring costs also contributed to the fall in profits.

Resources Industries – which includes Caterpillar’s mining equipment business – recorded the worst performance of all business segments with sales down 29% overall at US$1.457 billion. This saw the business drop into the red in with a loss of US$163 million. This compares to a profit of US$27 million in the same period last year on sales of US$2.048 billion.

Mining sales were hit across the board with biggest fall recorded in North America where sales fell 36%. Latin American mining sales were down 21%, EAME sales were down 21% and Asia-Pacific sales were down 24%.

Edited by Jonathan Rowland.