CaterpillarÔÇÖs profit falls in third quarter

Catepillar Inc., the worldÔÇÖs largest maker of construction and mining equipment, saw third-quarter profit slip 6 percent, as higher raw material costs offset record global sales. ┬á ÔÇ£We expected that material and freight costs would increase in the second half of 2008, and they did in the third quarter,ÔÇØ Jim Owens, chairman and chief executive of Catepillar, said in a statement. ÔÇ£Higher material costs, especially for steel, were the most significant headwind we faced.ÔÇØ ┬á The company said Tuesday it earned $868 million, compared with $927 million in the third quarter of 2007. ┬á Quarterly revenue jumped 13 percent to $12.98 billion up from $11.44 billion, with sixty percent of that income coming from outside North America. ┬á The company, which noted ÔÇ£recessionary conditionsÔÇØ in North America, also forecast flat sales for 2009. ┬á Owens said demand in emerging markets and commodity prices that have encouraged investment in mining and energy have helped offset the current economic conditions in most of the developed world.┬á Owens added that ÔÇ£recent financial market turbulence has focused attention on the financial strength of businesses of all kinds.ÔÇØ He added, ÔÇ£Caterpillar has a strong balance sheet, a solid credit rating and weÔÇÖve had access to the capital we need to run our business.ÔÇØ