Shares of Caterpillar plunged on Wednesday after the company slashed its full-year outlook and posted disappointing third-quarter earnings.

The company blamed the dismal results on a reduction in inventories from dealers. Executives said in a press release this weakness could persist due to “global economic uncertainty.”

Seen as a bellwether for American trade in general, Caterpillar shares are underperforming the broader market this year as global trade tensions continue to weigh.

The heavy machinery manufacturer earned $2.66 per share in the third quarter, versus the consensus estimate of $2.88 per share, according to Refinitiv. Revenue came in at $12.758 billion, while Wall Street expected revenue of $13.572 billion.

The company also lowered its full-year earnings per share forecast to a range of $10.59 and $11.09, below the expected $11.70. The company said it now expects fourth-quarter demand to be flat.

The Deerfield, Illinois-based company said dealers decreased inventories by about $400 million in the third quarter, compared to increasing inventories by $800 million in the same period last year.

Shares of Caterpillar fell nearly 4 percent in premarket trading on Wednesday.

“Our volumes declined as dealers reduced their inventories, and end-user demand, while positive, was lower than our expectations,” said Caterpillar Chairman and CEO Jim Umpleby.

Caterpillar’s sales in Asia-Pacific declined in the third quarter mainly because of the lower demand in China, the company said.