Aug 1 (Reuters) - Caterpillar Inc (CAT.N) warned of a fall in third-quarter sales and margins on Tuesday as dealer inventories rose again, stoking worries that demand for its heavy machinery used in everything from construction to mining may have peaked.
Caterpillar, seen as a proxy for global economic activity, said on Tuesday it was expecting third-quarter sales and operating profit margin to be higher than in the previous year, but lower compared to the second quarter.
The manufacturer reported a $600 million increase in dealer inventory in the second quarter from a year earlier, primarily in its energy and transportation business, as drilling at North American rigs shows signs of weakening.
Meanwhile, Caterpillar reported an adjusted profit of $5.55 per share in the second quarter, beating analysts' expectations of $4.58 per share.
Sales rose 21.6% to $17.32 billion, above Wall Street estimates of $16.49 billion.
Persons:
stoking, Ryan Keeney, Bianca Flowers, Shivansh, Anil D'Silva
Organizations:
Caterpillar Inc, Caterpillar, Thomson