Caterpillar, the world's largest maker of mining and construction equipment, has cut its 2013 profit forecast.
As AAP reports, this follows a 43.5 per cent drop in the company’s second-quarter earnings. It coincides with weak demand in its operating segments, particularly mining.
Caterpillar’s net income came was $US960 million on revenues of $US14.6 billion. This compared with last year's profit of $US1.7 billion on revenues of $US16.7 billion.
Given these results, the company lowered its 2013 global economic growth outlook to just over 2 per cent. Previously it had forecasted 2.5 per cent
"There's no question there's a slowdown. But long-term … mining is a great place to be," Doug Oberhelman, Caterpillar's chairman and chief executive, told CNBC.
Weaker metals demand in China and elsewhere has caused large miners such as Rio Tinto to cut back capital spending. In turn, this caused Caterpillar to identify mining equipment demand as a weak point.