NEW YORK: Caterpillar reported a drop in fourth-quarter and annual profits Friday on broadly lower sales amid the pandemic, but said it expects an improving 2021 with global economic recovery.

The industrial giant, which manufacturers and sells equipment for the mining, construction and energy industries, sees a “better” 2021 after the hit from the coronavirus weighed on results last year, Chief Executive Jim Umpleby said on a conference call with analysts.

However, Caterpillar did not reinstate annual projections. The company withdrew its forecast in March amid the upheaval of the pandemic.

“We do expect 2021 to be better,” said Umpleby, adding that the trajectory of the coronavirus remained a wild card, along with the effectiveness of the vaccine rollout. “Although we expect it to be a better year, it’s difficult to quantify just how much better it will be,” he added.