Caterpillar Slashes Forecast Again, Warns of Weaker Economy

Caterpillar Inc. slashed its 2012 forecast for the second time this year and warned the global economy was slowing faster than it had expected.

The caution sign was the latest in a string of comments from multinational manufacturers, including General Electric Co. and Honeywell International Inc., that the economic recovery remains tenuous and tepid at best.

Caterpillar's retail dealers are selling off inventories, rather than buying new machines, forcing the company to idle some production at plants earlier this year with additional shutdowns coming, executives said on Monday.

For more about Caterpillar's third-quarter results...