Caterpillar shares plunged after its fourth quarter profit widely missed Wall Street estimates.
The company blamed softening demand in China, a strong dollar, and higher manufacturing and freight costs.
It also lowered its 2019 profit outlook.
BMO Capital Markets, managing director, Joel Tiss: (SOUNDBITE) (English) BMO INDUSTRIALS ANALYST, MANAGING DIRECTOR, JOEL TISS, SAYING: "Cat's got a new management team, and they seem to be doing a really good job.
But maybe just the cyclical, the businesses that are in, are stronger than any moves that any management can make.
And I think that's a little bit frustrating for investors, too.
Investors were hoping that this new CEO and his new management team could really power this company through a cyclical downturn.
And it doesn't feel like it.
It doesn't feel like Cat, as a company, is really acting any different than it has historically during economic slowdowns." Caterpillar is one of the largest equipment manufacturers in the world.
It's considered a bellwether for global trade because it gets most of its sales from outside of the U.S.