Things Are Falling Apart For Caterpillar

The last couple of years have not been very kind to Caterpillar Inc. (CAT). After a poor performance in the third quarter of the fiscal year 2013, Caterpillar revised its future guidance for the fourth quarter as well as for the fiscal year 2014. I aim to identify the factors behind the poor performance in the third quarter of the fiscal year 2013. Moreover, I have studied the future prospects of the company in order to determine whether or not it presents itself as a profitable investment opportunity.

The company reduced its 2013 outlook after the weak results of the fiscal year 2013. What are the factors that put pressure on the top and bottom lines of the company?

The company announced third quarter sales and revenues of $13.42 billion. This is a decline from $16.45 billion earned in the third quarter of the fiscal year 2013. Read more.