Caterpillar posts lower earnings, cuts 2016 outlook

Markets Reuters

Caterpillar Inc on Tuesday reported a sharply lower third-quarter profit after global economic weakness and an abundance of available used equipment slowed sales of its new machinery.

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The world's largest construction and mining equipment maker also lowered its full-year revenue outlook for the second time. It now expects about $39 billion, down from a range of $40.0 billion to $40.5 billion.

The company expects its challenges to persist into next year, Chief Executive Officer Doug Oberhelman said in a statement.

"In North America, the market has an abundance of used construction equipment, rail customers have a substantial number of idle locomotives, and around the world there are a significant number of idle mining trucks," Oberhelman said.

Caterpillar forecast 2016 profit at $2.35 per share, or $3.25 excluding restructuring costs.

The company again raised expectations of 2016 restructuring costs, to $800 million from a previous estimate of $700 million.

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Shares of Caterpillar were down 1.7 percent at $84.55 in premarket trading.

Caterpillar reported a third-quarter profit of $283 million, or 48 cents per share, down from a revised $559 million, or 94 cents per share, a year earlier.

Excluding restructuring costs, earnings per share were 85 cents.

(Reporting by Meredith Davis in Chicago; Editing by Lisa Von Ahn)