Costs Worsen Cat's Wounds

Updated from 11:49 a.m. EDT

Caterpillar's (CAT Quote) troubles are about more than gloom in the U.S. economy.

The construction-equipment maker disappointed Wall Street Friday with its third-quarter profit report and domestic economic outlook, even as strong demand from overseas markets continued to fuel the company's growth.

But while developing economies like China and India are carrying the day for many multinational corporations amid the U.S. housing slump, analysts say Caterpillar is having problems with its supply chain that its competitors are not. ...