David Einhorn, president of hedge fund Greenlight Capital, said Wednesday he was bearish on Caterpillar Inc., making the case that the company's recent troubles haven't signaled a bottom in the stock.

The stock fell 1.5% in after-hours trading.

Caterpillar is down 15% in the last 12 months as the construction-equipment maker cuts back on production and slims its workforce to cope with falling demand. The company said late last month that it had trimmed 5,300 positions out of a planned 10,000 cuts.

Mr. Einhorn, speaking at the Ira Sohn Investment Conference, said the company has further troubles ahead due to a secular decline in demand for coal and the end of a boom in iron ore. The company may also be hit by lagging construction activity and its annual earnings are likely to decline to $2 per share until 2018, he said.

"We think Caterpillar will trade at somewhere around half of its current price," Mr. Einhorn said.

A spokeswoman for Caterpillar didn't immediately respond to a request for comment.

James Chanos, founder of Kynikos Associates, who gave a presentation directly after Mr. Einhorn has also said he is short Caterpillar.

Mr. Einhorn also reiterated his bullish position in General Motors Co., saying the market is underestimating the car maker's ability to sell vehicles.

Write to Ben Eisen at ben.eisen@wsj.com

(END) Dow Jones Newswires

May 04, 2016 18:45 ET (22:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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