Caterpillar Inc. said Monday it would raise prices to compensate for as much as $200 million in added costs as a result of President Trump’s tariffs on steel and aluminum imports.
Even with additional cost pressure from the administration’s trade agenda, however, the company reported a 112 percent increase in profits. Income surged to $1.7 billion for the three months through June, while revenue rose 23.7 percent to $14 billion.
“Caterpillar delivered record second-quarter profit per share,” Chief Executive Officer Jim Umpleby said in a statement. “Our team is doing a great job executing our strategy for profitable growth, focusing on operational excellence, expanded offerings and services.”
The Deerfield, Ill.-based machinery provider said its mid-year price increases would cover most of the higher expenses from Trump’s tariffs of 25 percent on steel imports and 10 percent on aluminum, duties that already prompted retaliation from allies such as the European Union, Canada and Mexico. Businesses including General Motors and Ford Motors Co. are warning that profits will drop because of the levies.
Caterpillar’s board of directors earlier this year authorized a $10 billion stock repurchasing program. The company bought back $1.25 billion worth of common stock in the first half of the year, including $750 million in the last three months.
