Caterpillar Boosts 3Q Profit; Cuts ’05 Outlook

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eavy equipment and diesel-engine maker Caterpillar Inc. said Friday that its third-quarter profit jumped 34% but downgraded its full-year 2005 earnings outlook.

Caterpillar earned $667 million or 94 cents a share for the quarter, up from $498 million or 70 cents a year earlier.

Sales rose 17 percent to $8.98 billion, the company said in a statement.

Its full-year 2005 earnings will be between $3.85 and $4 a share, Caterpillar said. Its previous forecast, issued with its second-quarter earnings in July, was $4 to $4.20 a share. The revised outlook includes possible charges of $100 million related to new software and product changes.

The company’s fourth-quarter profit will be $1.01 to $1.16 a share, Caterpillar said.

Caterpillar said its 2005 sales would rise 20% to $36.3 billion, and will rise 10% in 2006.

Caterpillar’s profits last year were hurt by more than $1 billion in unexpected expenses for raw material and extra shipping costs to meet surging demand, Bloomberg reported.