UPDATE: Caterpillar Posts Downbeat Q4 Earnings, Issues Weak Outlook

Shares of

slipped more than 6% in pre-market trading after the company reported weaker-than-expected earnings for the fourth quarter and issued a weak forecast for 2015. Caterpillar projects FY15 earnings of $4.75 per share on revenue of $50 billion. Analysts expected earnings of $6.67 per share on revenue of $55 billion. The Peoria, Illinois-based posted a quarterly profit of $757 million, or $1.23 per share, versus a year-ago profit of $1 billion, or $1.54 per share. Excluding certain items, the company earned $1.35 per share. Its revenue declined to $14.2 billion from $14.4 billion. However, analysts were expecting earnings of $1.55 per share on revenue of $14.2 billion. Machinery, energy and transportation sales slipped 1% in the quarter. Inventory dropped around $1.1 billion in the fourth quarter of 2014. During the year, the company repurchased $4.2 billion of Caterpillar stock and lifted the quarterly dividend by 17%. "Overall, we had many positives and a better year in 2014 than 2013," said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman. "Our emphasis on cost management, operational execution and cash flow helped us deliver better profit per share than both 2013 and the 2014 outlook we provided at the start of the year.” Caterpillar shares slipped 6.20% to $80.70 in pre-market trading.