NEW YORK (TheStreet) -- Caterpillar (CAT) - Get Report stock is lower by 1.16% to $65.02 in late-afternoon trading on Wednesday, as the construction and mining equipment manufacturer will combine two of its power and energy divisions.
Caterpillar will consolidate the Electric Power and Marine & Petroleum Power Divisions into the new Electric Power, Marine and O&G Division, according to a statement.
Tumbling commodities prices and weak demand for heavy machinery have pressured the company to shutter plants and reduce its workforce, Reuters notes.
"If conditions stay soft, more cuts will be made. Much of the decline in mining, commodities, coal and energy have more than just cyclical weakness and the firm needs to right-size operations to the likely 'new normal,'" Eli Lustgarten, analyst at Longbow Research, told Reuters.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Caterpillar's strengths such as its expanding profit margins are countered by weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: CAT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.