Caterpillar Posts Loss, Hurt By Weak Sales, Charge

DANIEL LOVERING

PITTSBURGH (AP) — Heavy equipment maker Caterpillar Inc. reported its first quarterly loss in 17 years on Tuesday, hurt by plunging sales and the cost of laying off thousands of workers. It also said the Obama administration should have allocated more money for roads, bridges and other public works under its stimulus plans.

The $112 million loss highlighted the depth and breadth of a global downturn, as the company suffered double-digit sales declines in most of its businesses. Caterpillar's vast geographic reach and array of products — including black-and-yellow bulldozers, engines for cargo ships and mining trucks that haul materials like iron ore — make it a bellwether of the global economy.

The world's largest maker of construction and mining equipment also said the global slowdown was worse than it predicted, despite government stimulus plans and better-than-expected commodity prices. With lending still tight and the U.S. recession tougher than expected in the first quarter, Caterpillar cut its outlook for the year.

"A great deal of uncertainty exists in the global economy, making it extremely difficult to know how our customers will respond during the remainder of 2009," Caterpillar CEO Jim Owens said in a statement.