Caterpillar Announces Bad News for Construction Industry

Caterpillar just announced their Q4 earnings fell short of expectations. More importantly, because of the declining price of oil, they project their 2015 sales to amount to $50 billion (down from their 2014 sales of $55 billion).

“We expect world economic growth to only improve modestly in 2015. The relatively slow growth in the world economy and continued weakness in commodity prices — particularly oil, copper, coal and iron ore — are expected to be negative for our sales….

The recent dramatic decline in the price of oil is the most significant reason for the year-over-year decline in our sales and revenues outlook. Current oil prices are a significant headwind for Energy & Transportation and negative for our construction business in the oil producing regions of the world.”

Graph that shows that Caterpillar sales missed profit 

Read the entire article: Source

Image: Source

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