Caterpillar cuts full-year forecast - FT.com Caterpillar, the maker of earthmoving, construction and mining machines often seen as a barometer of economic activity, has cut its full-year profits forecast sharply, saying dealers were pulling back on orders in the face of economic uncertainty. As it announced third-quarter financial figures, Caterpillar reduced its forecast for full-year revenues to $66bn from an earlier range of $68bn to $70bn. The earnings-per-share outlook, which had been in a range centred on $9.60, was cut to a range of $9.00 to $9.25. The third-quarter figures were nevertheless the best in Caterpillar's history as it benefited from a 13 per cent year-on-year increase to $5.21bn in sales in its resource industries segment, which supplies miners. Even the reduced forecast would produce record net profits and revenues for the year, the company said. Net profits were 49 per cent higher from last year to $1.7bn, on revenue up 5 per cent to $15.7bn. Earnings per diluted share also rose 49 per cent, to $2.54. The company said it had temporarily shut down some factories and laid off some workers in response to the worse-than-expected world economic conditions. Doug Oberhelman, chief executive, said Caterpillar had seen continued economic weakening and uncertainty as it moved through the year. "It's definitely impacting our business with dealers intending to lower inventories and mining customers delaying some projects and reducing orders," he said. The company expects revenues in 2013 - which it predicts will see worldwide economic weakness, but not a recession - to be between 5 per cent below and 5 per cent above the levels for this year. It expected continuing growth in the US, China and most of the developing world but "continuing difficulty" in Europe. "While machine deliveries to end users have continued to hold up, our sales will probably remain relatively weak early in 2013 as dealers are likely to continue reducing inventories," Mr Oberhelman said. When expected dealer inventory reductions level off, and easing actions by central banks and governments around the world begin to improve economic growth, we expect our business will begin to improve. For the third quarter, Caterpillar said sales in North America were up 9 per cent and sales in Asia-Pacific - where increases in Australia and elsewhere had more than compensated for declines in China - were up 8 per cent. Sales were flat in both Latin America and its Europe Middle East Africa segment, where declining European sales were offset by increases in Africa, the Middle East and former Soviet countries. Sales in construction industries, Caterpillar's second-biggest segment, were flat year-on-year at $4.9bn. Power systems revenues were up 5 per cent to $5.32bn.