PEORIA, Ill. (WMBD) — In the company’s first quarter earnings report, Caterpillar, Inc. reported it lost more than $1 billion due to fewer sales.

And it appears that could be due to declining demand for its equipment.

Released on their website, the company released that sales and revenues for the first quarter of this year was a 10% drop from the first quarter of last year.

In the first quarter, Caterpillar’s revenue dropped to $14.25 billion from $15.8 billion a year earlier. The performance fell short of the $14.54 billion that analysts surveyed by Zacks Investment Research were expecting, The Associated Press reported.

Caterpillar’s profit margin for the first quarter of this year was 5% less than the first quarter of 2024.

Sales volume dropped by $1.1 billion. Dealer inventories rose by $100 million in the quarter, significantly down from the $1.4 billion increase in the prior-year period.

Caterpillar earned $2 billion, or $4.20 per share, for the three months ended March 31. A year earlier the Irving, Texas-based company earned $2.86 billion, or $5.75 per share.

Newly named CEO Joe Creed said “Our strategy for long-term profitable growth is delivering results, which reflect the benefits of our diverse portfolio and end markets.”

He continued with, “I am honored to lead our talented team in building on Caterpillar’s legacy of helping customers solve their toughest challenges.”

For the second quarter, Caterpillar said it foresees its sales being similar to the prior-year period. When accounting for the cost impact of current tariff levels for the rest of the year, the company anticipates full-year sales will be down slightly compared with a year earlier, which is in line with its previous expectations.

Shares rose more than 3% before the market opened on Wednesday.

WMBD has reached out to a Caterpillar spokesperson for comment.