Caterpillar Sales Slide on Weak Industrial Demand

Caterpillar (CAT) shares fell on Wednesday when the construction equipment manufacturer reported worse-than-expected results and warned about the future due to slowing demand in the industrial sector.

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

Sales of construction industries units decreased by 9% to $6.35 billion due to lower volumes and prices. It fell 10% to $3.03 billion in the Resource Industries sector, mainly due to lower purchases by end users. Sales rose 5% to $7.19 billion in the energy and transportation division as volumes and prices rose.

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

Even with today’s 1% decline, Caterpillar shares are up about 30% year to date.