DEERFIELD, Ill. — In its third quarter financial report, Caterpillar said early Wednesday morning that sales and revenue dropped six-percent, from $13.5 billion a year ago to $12.8 billion.
Third-quarter 2019 profit per share was down eight-percent from $2.88 in 2018 to $2.66.
CAT officials said the drop in sales and revenue was due to a $1.2 billion movement in dealers’ inventories. Dealers decreased their inventories about $400 million during the third quarter of 2019, after increasing their inventories about $800 million during the third quarter in 2018.
Because of the low numbers, Caterpillar is lowering its full-year profits per share outlook from $11.40 to $10.90.
Caterpillar Chairman and CEO Jim Umpleby said the company expects end-user demand to be flat in the 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.”
