Wednesday, July 25th, Caterpillar announced it changed its 2012 profit forecast due to slowly improved global economy.
The quarterly profit posted by Caterpillar beat the Wall Street’s expectations. The company said that the high profit was due to increased sales marine engines, bulldozers and mining trucks. Caterpillar’s shares also increased over 2%. In North America sales were up 31% due to the company’s acquisition of Bucyrus, the Wisconsin-based mining equipment provider, in 2011. Sales in Europe, Africa and Middle East were up 15%, even if sales of backhoes and excavators were flat.
“While we’re expecting a record year in 2012, we understand the world is facing economic challenges, and if it becomes necessary, we are prepared to act quickly,” Caterpillar Chief Executive Officer Doug Oberhelman said in a statement. “The good news is this doesn’t feel like 2008.”
Even if the company raised its sales target by a dime a share making it easier to hit, analysts believe that Caterpillar is not yet out of the economic crisis claw. They say that everyone s affected by the weaker global outlook even if they report profits for this year.