New York, NY, United States (4E) – Caterpillar Inc. said third-quarter profit declined due to lower demand for mining equipment, which weighs on results.
Third-quarter profit was at $946mn, compared to $1.70bn a year earlier. Per-share earnings were at $1.45, compared to $2.54 last year.
Caterpillar said total sales and revenues stood at 13.42bn, compared to $16.44bn last year. Analysts predicted revenue of $14.32bn in the latest quarter.
The world’s biggest maker of wheel loaders, excavators and bulldozers cut its full-year guidance for per-share earnings to $5.50 and revenue to $55bn. The company previously set its earnings guidance at $6.50 per share on $56bn to $58bn revenue.
The boom in global mining boosted Caterpillar’s performance, helping the company to bounce back quickly from the 2008 recession. The company, however, is up against high year-earlier comparisons in most of its markets. Sales of mining equipment are also pressured by declining demand for mining equipment due to falling prices of mined commodities like iron ore.
Caterpillar said huge risks and uncertainties will continue to weigh on economic growth in 2014. For next year, the company predicts sales to remain flat from 2013, plus or minus 5 percent. Until mining orders recover, the company said it will not raise its outlook for its resource industries business.