Caterpillar (NYSE:CAT) shares fell Wednesday, as the heavy equipment maker said it expects 2024 revenue to be below its forecast from August, when it had said that full-year revenue will be “slightly lower” than 2023, sending the company’s shares down 3.7% before the bell on Wednesday.
Construction equipment makers got a boost from a surge in post-pandemic demand for equipment, helped in part by U.S. President Joe Biden’s 2021 infrastructure law, a $1-trillion enactment aimed at upgrading roads, bridges and other transport infrastructure.
However, the initial boom in demand from government infrastructure projects has slowed down.
Caterpillar said it now expects annual revenue to be slightly lower than its prior forecast. The company, however, maintained its adjusted operating profit margin and adjusted profit per share expectations for the full year, as price hikes offset some impact from a sales slowdown.
Concerns about persistent inflation and declining farm incomes have resulted in U.S. machinery makers moderating product stocking as dealers try to cut inventory levels, while high manufacturing costs have also dented profits.
Caterpillar said on Wednesday that dealers moderated purchases during the third quarter compared to last year.
CAT shares began Wednesday gave up $12.34, or 3.2%, to $375.17.
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