Caterpillar’s cost-cutting efforts helped the heavy-equipment maker make up for slowing sales after demand was ravaged by the coronavirus pandemic.
Total operating costs were 25% lower, the company said in an earnings statement. Sales fell across the company’s segments, with dealers slashing inventories by $1.4-billion. While Caterpillar declined to provide forward guidance, it sees a similar percentage decrease in end-user demand in the third quarter, and expects dealers to cut stockpiles by more than $2-billion for the full year.