Caterpillar cuts profit outlook, says low oil price will hit sales

Chicago

CATERPILLAR Inc on Tuesday cut its 2015 profit outlook and warned the plunge in oil prices would hurt its energy equipment business, sending shares tumbling as much as 8 per cent.

The world's largest construction and mining equipment maker also posted a lower-than-expected fourth quarter profit of US$757 million, down nearly 25 per cent from US$1.03 billion a year earlier. During that quarter, Caterpillar's energy business helped offset falling construction equipment sales and weakness in mining equipment orders due to lower copper, coal and iron ore prices.