Machinery maker Caterpillar Inc has posted third quarter profit that beat analysts’ estimates and raised its full year forecast. The company said it was seeing signs of recovery.
Net income dropped to USD 404 million from USD 868 million a year earlier. The average estimate in a Bloomberg analyst survey was 5 cents a share. Shares rose in early New York trading.
Caterpillar has slashed inventories and capacity amid the worst decline in its markets since the 1930s. Sales fell by 44% to USD 7.3 billion from USD 13 billion.
Analysts said that renewed demand from developing countries such as China and Brazil, a weaker dollar that makes the company's products less expensive in overseas markets and rising commodity prices could brighten Caterpillar's prospects next year.
Caterpillar also provided its first forecast for 2010, saying it expects revenue will be up 10% to 25% from 2009 levels. The company, which has laid off, bought out or retired about 34,000 workers globally over the past year as demand for its earth moving equipment declined along with economic growth, raised its full year profit forecast to a range of USD 1.10 to USD 1.30 a share, including redundancy costs.
