Dive Brief:

• Profits at heavy equipment maker Caterpillar declined 29% and sales fell 13% in the second quarter, more than investors had expected from the Peoria, IL,-based company.

• Orders for construction equipment took the greatest hit, finishing the quarter with an 18% loss. Sales also dwindled by the double digits in the energy, transportation and resource industries. The global company felt the downturn worldwide, and blamed weakness in European, Japanese and Brazilian currencies for much of the drop in sales and profits.

• Still, the company resisted pressure from Wall Street to further slash its production capacity, saying it had already made cuts.

Dive Insight:

Despite the bad report, Caterpillar did not change its earnings predictions for the year. But the company did cut its sales guidance by $1 billion to $9 billion, reflecting a pessimism about improvements in worldwide markets.

“Many of the key industries we serve remain weak, and we haven’t seen sustained signs of improvement, CEO Doug Oberhelman said on Thursday. He said the company will keep costs under control and boost its stock repurchase program so it will be ready to take advantage of a future recovery.

Investors reacted by selling their stock, driving prices of Caterpillar shares lower throughout the day.