[Stay on top of transportation news: .]
Caterpillar Reports 53% Drop in 3Q Profit
Heavy equipment and diesel engine maker Caterpillar Inc. said Tuesday its third-quarter profit fell 53%.
The company reported a net income of $404 million, or 64 cents a share, in the third quarter, compared with income of $868 million, or $1.39, a year ago.
Sales fell 44% to $7.3 billion, the company said in a statement.
Since the economy worsened last year, Caterpillar has been hit hard as demand for mining trucks and construction equipment has fallen, the Associated Press reported.
!--script type="text/javascript">
googletag.cmd.push(function () {
googletag.defineSlot('/21737348341/ttnewscom/rectangle4', [[300, 250]], 'div-gpt-ad-22764643208').setTargeting('test', 'lazyload').setTargeting(REFRESH_KEY, REFRESH_VALUE).addService(googletag.pubads());
googletag.display('div-gpt-ad-22764643208');
});
Caterpillar has responded to the downturn by cutting production and laying off thousands of employees.
The company increased its 2009 profit forecast to $1.10 to $1.30 per share, compared with an earlier forecast of 40 cents to $1.50 per share.
Caterpillar expects 2010 sales to rise 10% to 25% compared with the midpoint of 2009.
Ìý