Caterpillar's third-quarter sales drop from 2014
Third-quarter sales were down $2.5 billion from last year, and profit shares were at $0.75, nearly $1.00 lower than last year.
“The environment remains extremely challenging for most of the key industries we serve, with sales and revenues down 19 percent from the third quarter last year," Chairman and CEO Doug Oberhelman said. "Improving how we operate is our focus amidst the continued weakness in mining and oil and gas. We’re tackling costs, and our year-to-date decremental profit pull-through has been better than our target. We’re also focusing on our global market position, and it continues to improve even in challenging end markets."
The company expects the lag in sales to continue through 2016, with a forecast drop of 5 percent from this year. The forecast was based on slowing growth and reduced construction investment in the U.S. and Europe, and abroad in countries such as Brazil and China.
“Managing through cyclicality has been critical to Caterpillar’s success for the past 90 years; it’s nothing new for us or our customers," Oberhelman said. "When world growth improves, the key industries we serve – construction, mining, energy and rail – will be needed to support that growth. We’re confident in the long-term success of the industries we’re in, and together with our customers, we’ll weather today’s challenging market conditions."