Caterpillar Inc. downgraded its earnings guidance for 2019, saying it expects full-year sales to come in "modestly lower" after a decline in third-quarter revenues.
The company said it forecasts EPS in the range of $10.90 to $11.40 for the full year, down from its previous guidance in the range of $12.06 to $13.06.
Both full-year EPS guidance ranges include a discrete tax benefit of 31 cents in the first quarter, Caterpillar said.
Adjusted EPS forecast for the full year was also lowered to a range of $10.59 to $11.09, from prior guidance in the range of $11.75 to $12.75.
In the third quarter, revenues fell 5.6% on an annual basis to $12.76 billion from $13.51 billion. Caterpillar blamed the decline on a $400 million reduction in dealers' inventories during the period.
Caterpillar's adjusted profit for the third quarter fell 7.0% year over year to $2.66 per share from $2.86 per share.
The S&P Global Market Intelligence consensus normalized EPS estimate for the quarter was $2.90.
Profit attributable to common shareholders in the third quarter dropped 13.5% on an annual basis to $1.49 billion, or $2.66 per share, from $1.73 billion, or $2.88 per share.