Industrials Down on GDP Data, Caterpillar Earnings — Industrials Roundup

Shares of industrial and transportation companies fell after surprisingly weak gross-domestic product data and mixed earnings.

U.S. GDP rose 1.6% in the first quarter, a paltry figure compared to the growth rate in late 2023, and well shy of the average 2.5% economist estimate.

"The tailwind from fiscal policy may be fading," said economists at brokerage Bank of America Global Research.

The Bank of America economists noted weakness in government spending and structures categories.

Earnings reports also suggested a slowdown in infrastructure activity.

Caterpillar shares slid by more than 5% after the maker of construction and mining machinery warned it expects sales in 2024 to be flat with the year before as dealers sit on inventory built up in 2023.

Machinery maker Oshkosh reported first-quarter earnings per share of $2.89 from sales of $2.5 billion.

Airbus posted higher revenue and profit for the first quarter, backed its goal to deliver more planes this year than in 2023 and decided to increase production of its A350 wide-body jets, extending its lead over beleaguered rival Boeing.

Textron shares slid after the aerospace conglomerate reported first-quarter earnings that missed analysts' expectations.

Ford Motor shares slipped despite a report of earnings growth.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

April 25, 2024 17:29 ET (21:29 GMT)

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