LONDON (ShareCast) - (Sharecast News) - Profits at heavy equipment manufacturer Caterpillar fell in the first quarter as a result of weaker volumes and pricing.
The American firm, known for its construction and mining equipment, reported an operating profit of $2.58bn for the first three months of the year, down 27% on the year before. Adjusted earnings per share fell to $4.25 from $5.60, shy of the $4.35 expected by the market.

Meanwhile, revenues were down 10% over the year before at $14.25b, missing the $14.72bn consensus estimate, with lower sales volumes have a $1.1bn negative impact due to changes in dealer inventories, while "unfavourable price realisation" denting the top line by $250m.

The Construction Industries division saw revenues fall 10% to $2.88bn, while turnover in the Resources Industries unit dropped 19% to $5.18bn.

The larger Energy and Transportation business, however, reported just a 2% decline in revenues to $6.57bn.



Despite the top and bottom line misses, the market gave a muted reaction to results on Wednesday, with shares up just 0.37% at $308.53 in early deals, following a 15% slump so far this year.

In a statement, incoming chief executive Joe Creed said: "Our strategy for long-term profitable growth is delivering results, which reflect the benefits of our diverse portfolio and end markets."

Creed, currently chief operating officer, was this month announced as the successor to Jim Umpleby, who will transition to executive chair later this week.

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