DOW JONES NEWSWIRES
Caterpillar Inc. (CAT) Chairman and Chief Executive Jim Owens
said the heavy-machine maker believes it will benefit from an
eventual economic recovery, but warned of uncertainty about the
timing of growth.
"Looking forward, there is far too much uncertainty to know when
the global economy will turn toward robust positive growth," Owens
said. He made the comments to a group of analysts and shareholders
on Tuesday in Peoria, Ill.
The statements echo earlier comments from Caterpillar, which has
said it expects the global economy to contract by more than 2% this
year, and warned last month that recent upbeat indications about an
economic recovery may not last.
Still, Owens reaffirmed Caterpillar's earnings and revenue
targets from last month, when it shaved off the top of its revenue
figure by $2.5 billion and provided a broader earnings target.
Shares were recently up 3.6% to $46.75.
Last month, Caterpillar reported that its second-quarter profit
fell 66% amid slumping machinery and engine sales as job-cut
charges further reduced earnings. Caterpillar has reported lower
profits in three of the past four quarters and swung to a loss in
the other quarter on restructuring charges.
The infrastructure and commodities boom powered Caterpillar for
about five years - helping it more than double its annual revenue
from 2002 to 2007 - but collapsed late last year. Overseas sales
offset a slumping U.S. housing construction market early in 2008,
but late in the year, a pullback in commodities prices and global
demand hit results.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com