Caterpillar is reporting a drop in sales and revenues, as well as profit per share.
The company says third quarter’s sales and revenue amounted to $12.8 billion — a 6 percent decrease from the $13.5 billion in sales over the same quarter last year.
In a press release, the company attributed the drop to dealers reducing their inventory. Dealers scaled down inventory to the tune of $400 million in the third quarter, after boosting inventory by $800 million over the same stretch last year.
The company is lowering its full-year profit per share outlook range to $10.90 to $11.40. The previous outlook was at the low end of the $12.06 to $13.06 range.
"In the fourth quarter, we now expect end-user demand to be flat and dealers to make further inventory reductions due to global economic uncertainty," said Caterpillar Chairman and CEO Jim Umpleby. "Caterpillar's improved lead times, along with these dealer inventory reductions, will enable us to respond quickly to positive or negative developments in the global economy in 2020. We are expanding our offerings and investing in services, including digital capabilities, to drive long-term profitable growth, while continuing to achieve our Investor Day targets for improved financial performance."
The company also bought back $1.2 billion in common stock in the third quarter.
Zacks Investors Research reports the ongoing trade war with China is taking a toll on Caterpillar, and the U.S. manufacturing sector as a whole.
The Deerfield-based company is often considered a bellwether for the overall economy's health. Caterpillar is on the Fortune 100 list of the nation's largest corporations.
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