Caterpillar says tariffs increasing costs, stock tumbles

Caterpillar says tariffs increasing costs, stock tumbles
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Industrial services powerhouse Caterpillar on Tuesday saw its stock price dive 8 percent when it gave disappointing adjusted earnings guidance for 2018, blamed partly on tariffs imposed by President TrumpDonald John TrumpPaul Ryan defends Navy admiral after Trump's criticism Trump discussing visit overseas to troops following criticism: report Retired Army General: Trump is ‘acting like an 8th grader’ in attacking ex-Navy SEAL who led bin Laden operation MORE.

The company said the two major drivers of higher manufacturing costs were "higher material costs due to steel and tariffs" as well as increased freight costs. 

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Analysts expected the company to raise its adjusted earnings guidance, but the company held it steady at $11 to $12 per share. 

President Trump has imposed a series of tariffs on steel and aluminum imports on close U.S. allies, tariffs that have remained in place despite some progress and even tentative trade deals.

Caterpillar's overall guidance remained positive, if below what Wall Street traders were expecting. Revenue climbed 18 percent to $13.5 billion and earnings were up over the previous year. 

"This was the best third-quarter profit per share in our company’s history,” Caterpillar CEO Jim Umpleby noted.