As expected, Caterpillar cited a tougher global market and a weak economic outlook this morning.
The company predicts a continuing slow but non-recessionary global economy through next year.
Caterpillar profit climbs 49%, cuts view has the breaking news:
"Caterpillar Inc. said
Monday its third-quarter profit rose 49% to $1.7 billion, or $2.54 a share, from
$1.14 billion, or $1.71 a share, in the year-ago period. The latest quarter
included a pre-tax gain of $273 million, which the company had previously
announced. Total sales and revenue at the maker of bulldozers rose 6% to $16.45
Wall Street analysts expected Caterpillar to earn $2.21 a share on
revenue of $16.6 billion, according to a survey by FactSet.
Caterpillar said it
now expects 2012 earnings of $9 to $9.25 a share, below its earlier estimate of
about $9.60 a share.
Revenue for 2012 is estimated at $66 billion, below its
earlier range of $68 to $70 billion.
Caterpillar cited "global economic
conditions that are weaker than we had previously expected."
it's not expecting a global recession in 2013."
Later this morning on its regular quarterly earnings call with investors, the company will have more to say about the global economy and management's outlook for the economic recovery in 2013 and beyond.
For now, it's weaker than previously expected and looks like it will remain that way at least well into 2013.
If Caterpillar's crystal ball is accurate, however, no global recession lies ahead. That's good news.