Caterpillar profit falls 13.5%; cuts 2019 profit outlook

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© Reuters. Caterpillar logo is pictured at the 'Bauma' Trade Fair in Munich© Reuters. Caterpillar logo is pictured at the ‘Bauma’ Trade Fair in Munich

(Reuters) – Caterpillar Inc (N:) fell short of Wall Street estimates for quarterly profit on Wednesday, hit by weak demand in its construction and mining equipment businesses, and the company cut its 2019 profit forecast, sending its shares down 5%.

The Deerfield, Illinois-based company, considered a bellwether for economic activity whose results often influence global stock market sentiment, has been suffering from the prolonged U.S.-China trade war.

“In the fourth quarter, we now expect end-user demand to be flat and dealers to make further inventory reductions due to global economic uncertainty,” said Caterpillar Chief Executive Officer CEO Jim Umpleby.

Sales in the Asia Pacific region fell 13% to $2.68 billion in the third quarter.

Profit attributable to common stockholders fell to $1.49 billion, or $2.66 per share, in the three months ended Sept. 30, from $1.73 billion, or $2.88 per share, a year earlier.

Analysts on average expected Caterpillar to earn $2.88 per share, according to IBES data from Refinitiv.

Total sales and revenue fell 5.6% to $12.76 billion.

The world’s biggest construction and mining equipment maker cut its 2019 earnings expectation to $10.90 to $11.40 per share, compared with its previous estimate of $12.06-$13.06.

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