Caterpillar Profit, Forecast Beat Analysts’ Estimates
Oct. 20 (Bloomberg) -- Caterpillar Inc., the world’s largest maker of bulldozers and excavators, posted third-quarter earnings that beat analysts’ estimates and issued a full-year forecast that exceeded the highest prediction.
Profit dropped to $404 million, or 64 cents a share, from $868 million, or $1.39, a year earlier, the Peoria, Illinois- based company said today in a statement. The average estimate in a Bloomberg analyst survey was 5 cents a share. Shares rose in early New York trading.
Caterpillar has slashed inventories and capacity amid the worst decline in its markets since the Great Depression. Chief Executive Officer Jim Owens cut about 18,700 full-time jobs and about the same amount of temporary workers since December 2008 as demand faltered. Sales fell 44 percent to $7.3 billion.
“We believe the third quarter marked the low point for Caterpillar sales and revenues in what has been the toughest recession since the 1930s,” Owens said in the statement. “We are seeing encouraging signs that indicate a recovery may be under way.”