CAT Caterpillar Inc

By Joshua Jamerson 

Caterpillar Inc. reported a larger loss in the fourth quarter, dented by higher-than-expected restructuring costs, as sales skidded 13% on continued soft demand.

The sales decline was bigger than expected, and the stock fell 1.6% to $96.56 in premarket trading.

Caterpillar is still confronting persistent weak demand for its construction, mining and oil equipment. A slump in commodities prices and a glut of used machines have pressured sales of new equipment. Caterpillar Chief Executive Officer Jim Umpleby said in prepared remarks Thursday that the results for the quarter reflected "pressure in many of our end markets from weak economic conditions around much of the world."

The Peoria, Ill.-based manufacturing giant said it is "seeing positive signs that could be early indications of modest recovery in several of our businesses," but warned that sales of some large construction equipment within Resource Industries are likely to be down in 2017 compared with last year.

The company booked a total $1.98 billion in charges that it said weighed on the bottom line, including $395 million in restructuring costs. The company also recorded $985 million in mark-to-market losses as well as a large goodwill impairment charge.

Over all, Caterpillar recorded a net loss of $1.17 billion, or $2 a share, compared with a year-earlier net loss of $94 million, or 16 cents a share. Excluding certain items, the company said it earned 83 cents, flat with a year ago and above the 66 cents expected by analysts polled by Thomson Reuters.

Revenue fell to $9.57 billion from $11.03 billion in the prior-year fourth quarter. Analysts expected $9.84 billion.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

January 26, 2017 08:27 ET (13:27 GMT)

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