A declining economy in China, which is a major buyer of coal and metals, and reduced expenditures from mining companies across the globe are significant factors that led to lowering predictions.
The company has consequently laid its imminent acquisition of ERA Mining Machinery in China on the backburner, reported Bloomberg.
Caterpillar CEO Doug Oberhelman was quoted as speaking at the MINExpo industry conference in Las Vegas, "We’ve seen a slowing in economic growth that was more than we expected. We think ’13 could look like 2012 in terms of worldwide economic growth."
The company had shut its excavator plant in China in July 2012 and plans to temporarily close an Illinois component plant for a week in December.
Oberhelman further added that capital and acquisition spending will be lesser during the next few years compared to the previous ones.
