Caterpillar cuts profit viewCaterpillar Inc., Peoria, Ill., cut its profit and revenue guidance Monday, saying global economic conditions "are weaker than we had previously expected," according to USA Today.
Caterpillar is the world's largest construction and mining equipment maker, and its results are monitored carefully as an indicator of the economy's future.
Caterpillar says dealers want to reduce inventory, so they are ordering fewer products than end users want. The company has reduced production, leading to temporary shutdowns and layoffs. Until orders from dealers and inventories align with deliveries to end users, lower production levels will continue.
The company expects $66 billion in revenue in 2012 compared with the $67.2 billion analysts expected. It also expects profit of $9 to $9.25 per share compared with analysts' expectations of $9.41 per share. Revenue in 2013 is expected to be about the same as this year, within a range of up 5 percent or down 5 percent.
"We're not expecting rapid growth, and we're not predicting a global recession," says Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.
During the third quarter, the company's profit rose 49 percent to almost $1.7 billion, or $2.54 per share; a year earlier, the company's profit was $1.14 billion, or $1.71 per share. Revenue rose 4.6 percent during the third quarter to $16.45 billion. Analysts had projected earnings of $2.22 per share on revenue of $16.77 billion.
Date : 10/29/2012