Watch CNBC's full interview with Caterpillar CEO Jim Umpleby

Caterpillar CEO Jim Umpleby joins CNBC's 'Squawk on the Street' to break down the company's second-quarter earnings report, which fell short of revenue estimates. Umpleby provides an outlook for its European business, which saw a "decline in construction industries." "Certainly business conditions are moderating in Europe," Umpleby tells CNBC.