Caterpillar(US:CAT) Xin Lang Cai Jing·2025-08-29 22:40Group 1 - Caterpillar experienced a significant market adjustment with a stock price decline of 3.65% due to its latest financial forecast and trade policy uncertainties [1] - The company warned investors that losses could soar to $1.8 billion this year due to current tariff policies, with an estimated net impact of $500 to $600 million from new tariffs in Q3 [1] - Analysts attribute the pessimistic forecast primarily to U.S. steel and aluminum tariffs, with adjusted operating profit margins expected to be near the bottom of the target range [1] Group 2 - Caterpillar faces challenges from the Norwegian sovereign wealth fund, which decided to divest its shares for ethical reasons related to the company's equipment supply to Israel [2] - The industrial machinery sector is under dual pressure from trade policies and high interest rates, with weak market demand exacerbating cost challenges [2] - Despite these challenges, Caterpillar's current P/E ratio is above the industry median, indicating market optimism regarding its long-term profitability [2]