⁍ Caterpillar Inc on Tuesday reported lower quarterly earnings as equipment sales fell across its three primary segments.

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⁍ The heavy equipment maker, however, said the pace of decline in sales was moderating.

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⁍ Caterpillar’s shares were down 2.9% at $158.32 in morning trading.

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– Caterpillar’s third-quarter earnings dropped 54%, but the heavy equipment maker managed to beat analysts’ estimates. The company reported a profit of $1.22 billion, or $1.22 per share, for the July-September quarter, down from $2.4 billion, or $2.46 per share, a year earlier, reports the Wall Street Journal. Analysts had expected $1.16 per share. Sales fell 20% to $22 billion. The company said the decline in equipment sales was moderating, helped by an improving economy in China and an increase in residential activity in North America. “I feel better today than I did a quarter ago,” said CEO Jim Umpleby, per Reuters. The company’s shares were down 2.9% in morning trading. (Caterpillar’s shares have gained over 20% since the last earnings report, outperforming the broader Dow Jones Industrial Average, on hopes that the worst is over for its business.) The Illinois-based company, a bellwether for economic activity, has been suffering from business uncertainty caused by the US-China trade standoff and the coronavirus pandemic, which has forced customers delay capital expenditure. Chief Financial Officer Andrew Bonfield said while the demand for smaller machines has improved, customers were still hesitant to invest in heavy and more expensive equipment. Reflecting weak equipment demand, Caterpillar now expects dealer inventories to decline by $2.5 billion this year compared with a more than $2 billion fall estimated earlier. Profit for the third quarter came in at $1.22 per share, down 54% from a year ago.