The stock is up 6% in late pre-market trade. From Bloomberg:
Caterpillar Inc., the world’s largest maker of bulldozers and excavators, posted third-quarter profit that beat analysts’ estimates and issued a full-year earnings forecast that exceeded the highest prediction.
Net income dropped to $404 million, or 64 cents a share, from $868 million, or $1.39, a year earlier, the Peoria, Illinois-based company said today in a statement. 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. Chief Executive Officer Jim Owens has cut about 18,000 full-time jobs and about the same amount of temporary and contract workers since December 2008 as faltering demand led to a net loss in 2009’s first three months. Sales fell 44 percent to $7.3 billion from $13 billion.
“We believe the third quarter marked the low point for Caterpillar sales and revenues in what has been the toughest recession since the 1930s,” Owens said in the statement. “We are seeing encouraging signs that indicate a recovery may be under way.”>>>MORE
Update: Here's MarketBeat's take:
Caterpillar’s Bullish Outlook
Caterpillar gives one of the more bullish corporate outlooks for 2010, forecasting global GDP growth of 3%. Machinery maker says spare capacity will mitigate any inflationary threats and expects governments to ease monetary policy in the second half of 2010 while continuing to expand central bank balance sheets.
Stimulus efforts expected to peak in the first half of the year, suggests some governments may provide additional support, with commodity prices also expected to continue their climb. CAT up 3.8% at $60.07....MORE