Big exporter Caterpillar gave a figure on how much tariffs will affect its bottom line.
In its second-quarter earnings statement, the Dow Jones Industrial Average member said Monday it expects recently imposed tariffs to shave off $100 million to $200 million from its bottom line in the second half of the year.
Caterpillar’s announcement comes after the U.S. slapped tariffs on $34 billion of Chinese goods earlier this month. The U.S. has also implemented tariffs on steel and aluminum imports from Mexico, Canada and the European Union. They have retaliated against those levies with tariffs of their own.
“However, the company intends to largely offset these impacts through announced mid-year price increases and using the Operating & Execution Model to further drive operational excellence and structural cost discipline,” Caterpillar added in its statement.
Despite the higher costs related to tariffs, Caterpillar raised its forecast on Monday. It also reported record second-quarter earnings per share and revenue that topped analyst expectations and said it repurchased $750 million in shares in the quarter. The results sent Caterpillar’s stock up by more than 3 percent in the premarket.