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Caterpillar lowers financial forecast

Tue, 25 Sep 2012 14:30:20 CDT
By: AP

Peoria based Caterpillar Incorporated is lowering expectations for its profit in 2015 because of slower-than-expected growth in the global economy. The company, says it expects sales growth to pick up in 2014 and 2015 amid anemic global economic expansion. Caterpillar paid more than $7 billion last year for minining equipment maker Bycyrus. Prices of coal and iron have now declined causing mining companies to cut back on capital expenditures. Analysts say China is also reorienting its economy from exports to consumption which will negatively impact Caterpillar. The world's largest maker of construction and mining equipment had previously said it expected to earn $15 to $20 per share in 2015. It's now saying it expects to earn $12 to $18 per share on revenue of $80 billion to $100 billion. The company gave its guidance at a mining conference in Las Vegas.

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