Caterpillar Inc cut its revenue Outlook in 2015 and said it will cut 10,000 jobs by 2018, adding to a group of large American industrial companies that are experiencing problems due to a downturn in the energy and mining industry.

Caterpillar shares fell 8% to a five-year low.

Last year mining and energy companies have reduced budgets and suspended projects to expand because commodity prices such as oil, copper, coal and iron ore fell to six-year lows amid continued fears of oversupply and slowing economic growth in China. As a result, the orders for equipment have declined.

Peoria, in Illinois the world's largest manufacturer of construction and mining equipment Caterpillar, also hit by slowing industrial activity in China.

Analysts at S&P Capital called the restructuring "a strong response" to market conditions. The company showed no profit last few years, income decreases. This has a direct pressure on the leadership, which is looking for a way to respond to the situation, not showing signs of catalyst for improve in the short term.

Early in the month, mining equipment manufacturer Joy Global Inc, has issued a warning about a reduction in profits as it struggled to adapt to slowing demand for their services.

Company Deere & Co, the world's largest manufacturer of agricultural equipment, announced layoffs of more than 900 employees at the plant in January, when the decline of grain prices has affected the demand for agricultural machinery.

Caterpillar raised its profit Outlook for 2015 in April and confirmed in July.

Caterpillar expects that revenue will drop in 2015 for the third consecutive year to $48 billion, below the analysts ' average forecast of $48,82 billion.

In 2016, the company projected 5% decrease in revenue to approximately $45.6 billion Analysts forecast $47,36 billion.

Caterpillar announced that it will reduce the 4,000-5,000 jobs by the end of 2016, most of them will be in 2015. The company has already cut more than 31 000 people since mid-2012.

The company was 114 233 employees as at 31 December 2014, according to Thomson Reuters.

Caterpillar reported that it may close or consolidate more than 20 manufacturing enterprises in three major sectors - construction, resources, and energy and transportation.

Source: Thomson Reuters