NEW YORK (AP) — Caterpillar expects its first-quarter results to come in well below Wall Street's view as it continues to deal with weak product demand.
Shares fell more than 2 percent in Thursday premarket trading.
The mining and construction equipment maker anticipates a first-quarter adjusted profit between 65 cents and 70 cents per share, with revenue in a range of $9.3 billion to $9.4 billion.
Analysts polled by FactSet predict a profit of 95 cents per share on revenue of $10.34 billion.
Caterpillar Inc. maintained its full-year forecast, saying in a filing with the Securities and Exchange Commission that it remains "comfortable" with the figures. The Peoria, Illinois-based company still expects a profit of $3.50 per share and revenue between $40 billion and $44 billion. Wall Street is looking for a profit of $3.73 per share on revenue of $41.09 billion.
Caterpillar has been struggling with soft demand for mining equipment because of lower mineral prices around the world. In January the company announced that it planned to shutter five plants, causing a loss of about 670 jobs in Illinois and several other states. The move is part of a broader cost-cutting campaign announced last year that's expected to affect about 10,000 jobs over three years.
Caterpillar's stock declined $1.84, or 2.5 percent, to $72.50 about an hour before the market open.
