Caterpillar slashes profit forecast, citing economic uncertainty

©Agence France-Presse

Caterpillar shares were under pressure after it slashed its profit forecast, citing global economic uncertainty

New York (AFP) - Caterpillar shares came under pressure early Wednesday after the company slashed its profit forecast, citing global economic uncertainty.

The company, which manufactures machinery for energy, construction and resource companies, now projects 2019 earnings of $10.90 to $11.40 per share, down from the prior forecast at the low end of a range between $12.06 and $13.06 per share.

"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 Chief Executive Jim Umpleby.

The company reported third-quarter profits of $1.5 billion, down 13.5 percent from the year-ago period.

Revenues were $12.8 billion, a decline of 5.6 percent.

Shares fell 1.6 percent to $131.56 in pre-market trading.