11:39 AM EDT, 10/30/2024 (MT Newswires) -- Caterpillar ( CAT ) reported larger-than-projected declines in third-quarter results and tempered its full-year revenue guidance on Wednesday amid weakness in equipment sales.

Revenue fell to $16.11 billion for the three months ended Sept. 30 from $16.81 billion a year ago. The average analyst estimate on Capital IQ was for $16.24 billion. Adjusted earnings per share fell to $5.17 from $5.52 last year and missed the Street's estimate of $5.35.

The top-line decline primarily reflected lower sales volume of $759 million mainly due to softer equipment sales to end users, according to the construction and mining equipment manufacturer.

Sales fell 9% year over year to $6.34 billion in construction industries and 10% to $3.03 billion in resource industries. Revenue advanced 5% to $7.19 billion in energy and transportation.

In energy and transportation, sales to users increased by 5%, Chief Executive Jim Umpleby told analysts on a conference call, according to a Capital IQ transcript. "Power generation sales to users grew strongly as market conditions remain favorable for both reciprocating engines and solar turbines and turbine-related services."

In the fourth quarter, Caterpillar ( CAT ) expects "slightly" lower revenue, impacted by softer machine sales, Chief Financial Officer Andrew Bonfield said on the call. The company forecasts a reduction in machine dealer inventory and expects it to end the year around the same level as it did in 2023, Umpleby said. Caterpillar ( CAT ) expects reduced levels of rental fleet loading in North America, relatively low demand in China for the above 10-ton excavator industry, and weak economic conditions in Europe to persist, Umpleby told analysts.

For the full year, the company expects sales to be "slightly" lower than its previous guidance, according to Bonfield. On the company's second-quarter earnings call in August, management predicted that sales would be "slightly lower" on a year-over-year basis. The Capital IQ consensus is for revenue of $65.46 billion this year compared with $67.06 billion in 2023. Caterpillar ( CAT ) affirmed its adjusted profit per share guidance for the ongoing year.

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