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

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