Caterpillar earns 13% less in the third quarter and cuts forecasts

The US manufacturer of industrial machinery and heavy vehicles, Caterpillar, posted a net profit  of US $1.494 billion in the third quarter, 13.5% less than in the same period of the previous year, as reported by the company, which has revised a downwards forecasts for all of 2019.

Caterpillar’s turnover between July and September reached US $12.758 billion, 5.6% below the income recorded a year earlier, including a 6.2% drop in machinery sales, to US $11.974 billion.

Caterpillar sales grew 3% in North America and 12% in Latin America, while in the Asia / Pacific region they decreased 29% due to the fall in demand in China and in Europe, Africa and the Middle East, sales fell 6 % as a result of the impact linked to the euro.

Thus, in the first nine months of 2019, the US manufacturer obtained an attributed net profit of 4.995 billion dollars, 2% lower than the result corresponding to the period between January and September 2018. For its part, Caterpillar sales in the first nine months of 2019 have remained stable at US $40.656 billion, just 0.7% more than a year earlier.

The multinational has revised downwards its annual forecasts, placing its expectation of profit per share in a range between 10.90 and 11.40 dollars per share, compared to the previous year between 12.06 and 13.06 dollars per share.

“Our volumes declined as distributors reduced their inventories, and the end-user demand, although positive, was lower than our expectations,” said Caterpillar president and CEO Jim Umpleby.

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