Caterpillar Cuts Forecast, Again

Caterpillar Inc., a world leader in construction equipment, engines and mining machinery, cut its economic forecast for the second time in as many months, citing the sluggish recovery in America and overseas.

Caterpillar Inc. slashed its 2012 earnings forecast for the second time this year, predicting that the global economy will not begin to improve until the second half of 2013.
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Instead of buying new machines, Caterpillar's retail dealers are selling off inventories, forcing the company to idle production at plants and prepare for additional shutdowns, executives said October 22.

Third quarter profits for the construction equipment and engine manufacturer were better than expected, though the rebound in U.S. sales of heavy equipment follows a 30-year low. Caterpillar posted a $1.7 billion profit compared with $1.14 billion last year.

The company made headlines at major mining industry conference last month following the announcement of a reduced earnings forecast through 2015. Caterpillar CEO Doug Oberhelman blamed an "anemic" economic outlook, especially in the mining sector.

"As we've moved through the year, we've seen continued economic weakening and uncertainty," Oberhelman said in a statement.