LONDON (ShareCast) - (Sharecast News) - Caterpillar said on Monday that it had been hit hard by China's economic slowdown in the fourth quarter of its trading year.
The construction and mining equipment manufacturer warned investors that it now expected to report no sales growth in the Asian superpower this year and just a "modest" increase in worldwide sales.

Caterpillar turned in full-year earnings at the bottom end of its forecast and fell short of fourth-quarter estimates on the Street.

In the fourth quarter, revenues rose 11% year-on-year to $14.3bn as higher construction equipment sales volumes led the charge. Earnings per share came in at $2.55 each - $0.44 below estimates.

For 2019, Caterpillar now expects profits to come in around $11.75 to $12.75 per share as a result of higher expectations for the company's tax rate, as well as the slowdown in sales growth.

Chief executive Jim Umpleby said: "Our outlook assumes a modest sales increase based on the fundamentals of our diverse end markets as well as the macroeconomic and geopolitical environment."

As of 1535 GMT, Caterpillar shares had dropped 8.56% to $125.14 each.

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