The construction equipment giant expects full-year sales to decline slightly if the economy contracts in the coming months.

Caterpillar on Wednesday reported lower-than-expected first-quarter results on weak construction equipment demand and outlined two scenarios for its annual sales forecast, one of which included the potential impact of extensive tariffs.

Caterpillar Inc.’s stock fell Wednesday after the maker of earth-moving equipment said that it’s facing hundreds of millions of dollars in tariff costs in the coming quarter but that it is optimistic the impact will ease over time.