Caterpillar Inc. reported a lower quarterly profit on Wednesday and cut its outlook for full-year earnings, saying its independent dealers were focused on reducing machine inventories rather than building them up.

The company, the world's largest maker of mining and construction equipment, reported a second-quarter profit of $960 million, or $1.45 a share, down from $1.7 billion, or $2.54 a share, in the same period last year.

Caterpillar, which also makes locomotives, gas turbines and diesel engines and generators, said sales fell nearly 16 percent to $14.621 billion in the quarter.