NEW YORK (AP) — A slowing global economy is taking a toll on Caterpillar, which is cutting its outlook for the year after profits and revenue slid in the third quarter.
Dealers slashed inventories by about $400 million, hinting at a pull-back in spending by businesses. Dealers increased inventories by $800 million last year. Caterpillar's revenue and sales declined about 6%.
Net income was $1.49 billion, or $2.66 per share, well short of the $2.90 that Wall Street was looking for, according to industry analysts surveyed by FactSet. It's also weaker than the $1.72 billion the company earned in the same period last year.
The Deerfield, Illinois, company cut its per-share profit expectations for the year from $12.06 to $13.06, to $10.90 to $11.40.
Caterpillar tumbled more than 4% before the opening bell Wednesday.
