Caterpillar Reports 53% Drop in 3Q Profit

Heavy equipment and diesel engine maker Caterpillar Inc. said Tuesday its third-quarter profit fell 53%.

The company reported a net income of $404 million, or 64 cents a share, in the third quarter, compared with income of $868 million, or $1.39, a year ago.

Sales fell 44% to $7.3 billion, the company said in a statement.

Since the economy worsened last year, Caterpillar has been hit hard as demand for mining trucks and construction equipment has fallen, the Associated Press reported.

Caterpillar has responded to the downturn by cutting production and laying off thousands of employees.

The company increased its 2009 profit forecast to $1.10 to $1.30 per share, compared with an earlier forecast of 40 cents to $1.50 per share.

Caterpillar expects 2010 sales to rise 10% to 25% compared with the midpoint of 2009.