Steel Prices: Manufacturing Costs

steel prices: Caterpillar said Manufacturing costs were higher due to increased material and freight costs, according to The Guardian. Material costs were higher primarily due to increases in steel prices and tariffs. Shares in the US firm, considered a bellwether for the manufacturing sector, fell more than 7% after it failed to raise its 2018 earnings forecast, prompting fears that a slowdown may be ahead. Freight costs were unfavorable primarily due to supply chain inefficiencies as the industry continues to respond to strong global demand. However, the company kept the 2018 adjusted profit per share outlook of 11.00 to 12.00 per share unchanged, which did not go down well with investors expecting another upward revision in the earnings guidance. Share fell even though Caterpillar reported with adjusted profit rising to 2.86 a share in the third quarter, from 1.95 a share last year. (news.financializer.com). As reported in the news.