Caterpillar CEO Uncertain About Timing Of Economic Recovery

   DOW JONES NEWSWIRES 
 

Caterpillar Inc. (CAT) Chairman and Chief Executive Jim Owens said the heavy-machine maker believes it will benefit from an eventual economic recovery, but warned of uncertainty about the timing of growth.

"Looking forward, there is far too much uncertainty to know when the global economy will turn toward robust positive growth," Owens said. He made the comments to a group of analysts and shareholders on Tuesday in Peoria, Ill.

The statements echo earlier comments from Caterpillar, which has said it expects the global economy to contract by more than 2% this year, and warned last month that recent upbeat indications about an economic recovery may not last.

Still, Owens reaffirmed Caterpillar's earnings and revenue targets from last month, when it shaved off the top of its revenue figure by $2.5 billion and provided a broader earnings target.

Shares were recently up 3.6% to $46.75.

Last month, Caterpillar reported that its second-quarter profit fell 66% amid slumping machinery and engine sales as job-cut charges further reduced earnings. Caterpillar has reported lower profits in three of the past four quarters and swung to a loss in the other quarter on restructuring charges.

The infrastructure and commodities boom powered Caterpillar for about five years - helping it more than double its annual revenue from 2002 to 2007 - but collapsed late last year. Overseas sales offset a slumping U.S. housing construction market early in 2008, but late in the year, a pullback in commodities prices and global demand hit results.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]