Caterpillar lowers yearly guidance despite Q3 earnings beat

Sluggish growth and low commodity prices have been cited as some of the factors for Caterpillar lowering its full-year guidance on Tuesday, even though the company beat on its third quarter earnings.

The construction equipment firm posted revenue of $9.16bn and earnings of 85 cents per share, exceeding analyst estimates' of revenue of $9.86bn and earnings of 76 cents per share.

The company cut its full year revenue forecast to $39bn due to a " challenged environment", it announced in a statement on Tuesday.

The Illinois-based company previously maintained an outlook of between $40bn and $40.5bn. It has not posted an annual sales gain since 2012.

"Economic weakness throughout much of the world persists and, as a result, most of our end markets remain challenged," said Doug Oberhelman, Chairman and chief executive officer of Caterpillar.

"In North America, the market has an abundance of used construction equipment, rail customers have a substantial number of idle locomotives and around the world there are a significant number of idle mining trucks," he added.

Oberhelman revealed last week that he would step down at the beginning of 2017 after a 41-year career with the company.

He will be replaced by another veteran, Jim Umpleby, who has been with Caterpillar for 35 years.