Caterpillar further reduced its 2012 forecasts and reiterated its concerns for global growth as it reported its third-quarter earnings on Tuesday.
Check out coverage from Reuters, the Wall Street Journal and Associated Press. From the Journal:
Last month, Caterpillar predicted revenue for the year would be about $2 billion lower than the midpoint of its July revenue range of between $68 billion and $70 billion. On Monday, it chopped an additional $1 billion from its revenue forecast and shaved its 2012 profit outlook, reinforcing a view of rapidly deteriorating end-market demand.
“As we’ve moved through the year, we’ve seen continued economic weakening and uncertainty,” Chairman and Chief Executive Doug Oberhelman said. “It’s definitely impacting our business with dealers intending to lower inventories and mining customers delaying some projects and reducing orders.”
Caterpillar has dialed down production rates, temporarily idling some assembly plants and laying off workers. It said lowered production rates would likely accelerate during the fourth-quarter and extend into the first quarter of 2013. But executives stressed that the slowdown is likely to be temporary.
“We think the opportunity for growth still exists in 2014 and 2015, and you have to make sure you’re ready,” said Chief Financial Officer Ed Rapp during an interview.
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