Caterpillar reported Q2/16 sales and revenues of $10.3 billion, down 16% from $12.3 billion recorded in Q2/15. The decrease was primarily due to lower sales volume resulting from continued weak commodity prices globally and economic weakness in developing countries. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. Unfavorable price realization also contributed to the decline.

In North America, sales fell by 16% due to lower end-user demand for construction, continuing declines in mining and low oil prices. Sales also fell in all segments, with resource industries taking the largest dive (29%) followed by energy and transportation (20%).

Restructuring costs in 2016, which were expected to be about $550 million, are now forecast to be about $700 million. Additionally, Caterpillar said that the persistence of economic risks has caused current expectations for sales and revenues for the rest of the year to be near the bottom of the outlook provided in Q1/16. In April, the equipment manufacturer said it expected sales and revenues to fall between $40 million and $42 million for the year.