NEW YORK (TheStreet) -- Shares of Caterpillar (CAT) are down by 1.76% to $102.49 in mid-afternoon trading on Friday after the construction and mining equipment manufacturer issued a regulatory filing stating its year-over-year worldwide sales for the 2014 June to August period declined by 10%.
Caterpillar's sales fell as it faces a downturn in the mining industry, which has damaged demand for its equipment, the Chicago Tribune reports.
The company's sales by segment in the resource industries dropped 33% for the three months ended in August, compared to the same period in 2013, the Tribune added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Prices for coal, iron ore, and other mined commodities have slipped as supply increased and demand from China and other emerging markets have relaxed.
Demand for Caterpillar's products are down as mining companies are increasing productivity in preexisting mines, instead of investing in expansions or opening new mines.
Separately, TheStreet Ratings team rates CATERPILLAR INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CATERPILLAR INC (CAT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."