China Slowdown A Threat To Caterpillar's Valuation

Caterpillar's share price has witnessed a sharp decline of over 30% year to date. This can primarily be attributed to low end user demand for construction and mining equipment, which has weighed on the company's earnings as well. Asia Pacific revenue from construction and resource segments were down in double digits in the third quarter, primarily reflecting lower than expected sales volume in key markets such as China and Japan. The sharp decline in China sales was the result of the slowdown in...