Tractor and excavator maker says global economy is slowing faster than expected
Caterpillar, the world’s largest maker of tractors and excavators, has said the global economy is slowing faster than it had expected and slashed its 2012 forecast for the second time this year.
The company’s retail dealers are selling off inventories, rather than buying new machines, forcing Caterpillar to idle some production, executives say.
“As we’ve moved through the year, we’ve seen continued economic weakening and uncertainty,” the chief executive, Doug Oberhelman, said.
The statement came despite better-than-expected third-quarter profits on a rebound in US sales of heavy equipment to repair crumbling infrastructure. Europe and parts of Latin America remained tough regions for Caterpillar.
For the third quarter, the company posted profits of $1.7bn (£1.1bn), or $2.54 per share, compared with $1.14bn, or $1.71 per share, in the same three months last year.
Excluding one-time items, the company earned $2.26 per share. By that measure, analysts expected earnings of $2.22 per share, according to Thomson Reuters.
Revenue rose 5% to $16.45bn. Analysts looked for $16.77bn.
For 2012, the company now expects to earn $9 to $9.25 per share on sales of $66bn. The company had looked for about $9.60 per share. Analysts estimated 2012 profit of $9.40 per share on revenue of $67.64bn. In July the company also cut its 2012 forecasts.
leave a response, or trackback from your own site.