Caterpillar below forecast

Caterpillar Inc, the world's top maker of construction and mining equipment posted disappointing quarterly earnings on Friday and cut its full-year forecast.

BY: admin | Thu Jul 10, 2008

The company said third-quarter earnings rose 21 percent as strong sales overseas offset a slump in the U.S. residential construction market, but fell short of Wall Street expectations.

The Peoria, Illinois-based company reported a net profit of $927 million, or $1.40 a share, up from $769 million, or $1.14 a share, a year earlier however analysts, on average, had expected $1.43 a share.

Revenue rose nine percent to $11.44 billion, topping an average Wall Street forecast of $10.33 billion.

Industry strength
Caterpillar lowered its forecast for full-year earnings, saying it now expects $5.20 to $5.60 per share, down from a previous estimate of $5.30 to $5.80.
Its revenue forecast was unchanged at $44 billion.

Jim Owens, Caterpillar's chief executive, said:"Despite weakness in U.S. markets