PEORIA, Ill., Mon Oct 22, 2012 – Caterpillar Inc., the world’s largest maker of tractors and excavators, slashed its 2012 forecast for the second time this year as it warned the global economy was slowing faster than it had expected.
The company’s retail dealers are selling off inventories, rather than buying new machines, forcing Caterpillar to idle some production, executives said on Monday.
“As we’ve moved through the year, we’ve seen continued economic weakening and uncertainty,” CEO Doug Oberhelman said in a statement.
Caterpillar does not expect improvement in overall economic growth until the second half of 2013, Oberhelman added.
The statement came despite better-than-expected third-quarter profit on a rebound in U.S. sales of heavy equipment to repair crumbling infrastructure. Europe and parts of Latin America remained tough regions for Caterpillar.