Caterpillar Reports Decline in Q4 Profit Amid Reduced Demand and Inflation
Caterpillar (CAT) reported a decline in fourth-quarter profit, reflecting a reduction in dealer equipment restocking due to weak demand. High borrowing costs and persistent inflation have contributed to contractors adopting a cautious approach in purchasing new machinery.
The initial surge in demand driven by government infrastructure projects under the Biden administration's 2021 infrastructure law has also subsided. Dealers have scaled back inventory restocking to align with demand trends, amid concerns over rising borrowing costs and the Federal Reserve's gradual interest rate cuts.
Adjusted earnings per share for the fourth quarter fell to $5.14 from $5.23 a year ago. Sales and revenue declined to $16.22 billion from $17.1 billion in the previous year.