Caterpillar slipped 2.9% in premarket trading after saying its profit was negatively affected by changes in the value of the U.S. dollar compared with currencies in other countries.
The maker of heavy machinery and construction equipment said profit fell about 30% to $1.45 billion, or $2.79 a share, in Q4 from $2.12 billion, or $3.91 a share, a year earlier.
Its EPS was reduced by $0.41 in Q4 because of unfavorable foreign exchange rates for its machinery, energy and transportation (ME&T) business. A stronger dollar makes overseas earnings look weaker when converted from foreign currencies.
Sales and revenues for Q4 rose 20% from a year earlier to $16.6 billion to beat Wall Street’s estimate of $15.8 billion.
Operating profit grew 4% from a year earlier to $1.68 billion.
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Caterpillar falls after Q4 profit misses on foreign-exchange moves