Caterpillar Inc (CAT) recently reported that their quarterly earnings fell more than 32% and warned investors of a tough year coming due to the global downturn which began in the U.S. and destroyed the sales of earth-moving equipment. Caterpillar Inc also warned that profit in 2009 would suffer as they plan to cut 17,000 workers and buy out 2,500 others to help reduce costs as currently analysts predict it to be the weakest year for the company since World War II. The earnings news plummeted CAT share 10%. Overall outlook for Caterpillar is weak, i would suggest holding onto it since it's fallen so much but don't expect much out of the company in the following year. One potential bright spot for the company would be the continued upheaval in renovating infrastructure in both China and now U.S. If the company were able to gain some large contracts then they could be back on the fast-track to success. However for the rest of the year expect similar type earnings as we saw from CAT today.
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