CAT drops full year profit per share outlook after dismal third quarter numbers

Posted on October 23, 2019

By HOI-ABC

DEERFIELD – Caterpillar saw a lot of red in the third quarter.

In their third quarter financial report released early Wednesday morning, Caterpillar says sales and revenue dropped six percent, from $13.5 billion a year ago to $12.8 billion.

Our news partner HOI-ABC reports profits per share also went down eight percent from $2.88 a year ago to $2.66.

Cat officials say the drop in sales and revenue was because of a $1.2 billion movement in dealers’ inventories.

Because of the low numbers, CAT is lowering its full-year profits per share outlook from $11.40 to $10.90.

Caterpillar Chairman and CEO Jim Umpleby says they expect end-user demand to be flat in the upcoming fourth quarter, and dealers to make further inventory reductions due to global economic uncertainty.

“Our volumes declined as dealers reduced their inventories, and end-user demand, while positive, was lower than our expectations,” said Umpleby. “We remain focused on executing our strategy and continuing to achieve our Investor Day targets for margin improvement and free cash flow.”

WJBC News can be reached at [email protected]

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