Caterpillar cuts outlook over concerns of a weak economy
MINNEAPOLIS -- Caterpillar says the world's economy is weaker than it thought, and it doesn't expect growth to pick up until the second half of next year.
The company on Monday cut its 2012 revenue and profit guidance, and took a very cautious view toward its performance in 2013.
Caterpillar makes the yellow-painted excavators, heavy tractors, and other construction equipment often seen on road-building projects. It's the world's largest maker of construction and mining equipment, and also makes engines. Its results are watched closely for signs of where the broader economy is headed.
Where it's headed right now is for some weak growth, based on what Caterpillar was saying on Monday.
It predicted worldwide economic growth of 2.7 percent for next year, up from the 2.5 percent growth it expects for 2012. It expects the cheap lending offered in most countries to continue next year, although "growth has been slow to respond," the company said.