The company reduced its earnings forecast to $12 to $18 a share in 2015, down from its prior forecast of $15 to $20 a share. Caterpillar attributed the reduction to a greater-than-expected slowdown in economic growth as well as declining commodity prices.
The company emphasized its belief that the global economy will not slip back into recession.
Caterpillar made the announcement shortly before market close on Monday, leading its stock to fall more than 2.4% to $88.73 in after-hours trading. Just a year ago, Caterpillar completed the largest deal in the company's history - acquiring Bucyrus International for $7.6 billion. At the time, the company believed the acquisition would increase earnings to $20 a share by 2015.
Foxconn is trending as the China factory where Apple's (AAPL) iPhones are manufactured has resumed production. The plant was shut down following a massive brawl on Sunday night involving 2,000 employees. Foxconn said the incident is still under investigation. Some reports attribute the brawl to a confrontation between an employee and a guard. Foxconn has called it a "personal" dispute between employees. According to reports, the release of the new iPhone 5 and heavy demand for the phone led to the decision to reopen the factory. Foxconn has not confirmed what products are manufactured at the plant in Taiyuan or commented on whether the one-day shutdown will affect supplies. Foxconn has been the subject of criticism and scrutiny for allowing poor working conditions in its factories.
C.H. Robinson (CHRW)is another popular search. The freight transport provider said it will buy Phoenix International for $635 million in cash and stock. C.H. Robinson plans to buy its smaller rival, which provides international freight forwarding shipments for customers via air, sea and customs brokerage, in order to expand its business. C.H. Robinson said it expects the deal to be modestly accretive in the first year. The deal is expected to close in the fourth quarter of 2012. It is subject to regulatory approval.
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