Caterpillar halts operations at some facilities, withdraws 2020 outlook

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The company said it may suspend operations at more facilities, adding that it continues to run the majority of its U.S. domestic operations and plans to continue operations in other parts of the world .

Caterpillar said it was executing business continuity plans and warned of likely supply constraints, and that it could use alternative sources to redirect orders to other distribution centers.

U.S. factory manufacturing activity slowed in February as new orders contracted, reflecting worries about supply chain disruptions related to the fast-spreading coronavirus outbreak, which has revived financial market fears of a recession.

Caterpillar in January said it expected adjusted profit in 2020 in the range of $8.50 to $10 per share on the back of a further decline in equipment sales. The forecast is lower than $11.06 per share last year.

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