The global economy is in a steady state of decline and that has hurt the earnings of cyclical names like Caterpillar (NYSE: CAT ). The company has vowed to cut costs to help soften the diminution in its bottom line, but it will be difficult to cut its way to profitability. Investors should continue to avoid CAT for the following reasons: Double-Digit Declines In Revenue It is difficult to be bullish on a company whose top line is eroding. Caterpillar's Q2 revenue fell by 16% Y/Y. It also experienced declines in every product line. The biggest revenue decliners were Resources (down 29%) and Energy and Transportation (down 20%). Mining companies have been hurt by the rout in commodities prices - the Bloomberg Commodity Index is down over 13% over the past year. Mining remains in a slump and customers are delaying purchases and repairs which punished the Resources segment. China's slowing economy and its intimations of cutting back on imports of steel and iron ore won't help matters.