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Caterpillar sales fall on weak industrial demand
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Caterpillar sales fall on weak industrial demand

Key takeaways

  • Caterpillar missed its third-quarter profit and revenue forecasts due to a decline in demand from the industrial sector.
  • Sales in the construction and resources sectors declined, but they increased in the Energy and Transportation division.
  • Caterpillar warned that full-year sales and revenue would be “slightly lower” than its previous forecast.

Caterpillar (CAT) shares fell Wednesday as the construction equipment maker reported worse-than-expected results and warned of a slowdown in demand from the industrial sector.

The company reported an adjusted third quarter earnings per share (EPS) of $5.17, with revenue down 4% year over year to $16.11 billion. Both missed the consensus estimates of analysts surveyed by Visible Alpha.

Construction sector unit sales fell 9% to $6.35 billion due to lower volumes and prices. They fell 10% to $3.03 billion in the Resource Industries segment, mainly due to lower end-user purchases. Sales rose 5% to $7.19 billion in its Energy and Transportation division on higher volumes and prices.

Caterpillar said it expected full-year sales and revenue to be “slightly lower” than its previous forecast, which it said would be “slightly lower” than for the full year. previous. The company’s revenue in 2023 amounted to $67.06 billion. Analysts surveyed by Visible Alpha were looking for $65.84 billion this year.

Even with the current 1% decline, Caterpillar shares are about 30% higher year to date.

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