Caterpillar Sees Higher Profit by 2012; Sets Asian Partnerships

Heavy equipment and diesel engine maker Caterpillar Inc. said its profit may increase by 2012 if the economy recovers, Bloomberg reported.

Separately, the company said was close to gaining an agreement on an engine-making partnership in India and has received joint- venture offers from equipment makers in China, Bloomberg said.

Chief Executive Officer Jim Owens said the company’s profit could rise by $8 to $10 per share by 2012 if the economy sees a recovery, with sales under such a scenario rising to $60 billion annually.

Even under a recession scenario, its profit would increase to $2.50 a share on sales of $35 billion, Owens said, Bloomberg reported.

The company did not provide profit forecasts for 2010 or 2011, but repeated its 2009 profit forecast of $1.15 to $2.25 a share, on sales of $32 billion to $36 billion.

Caterpillar said in June 2008 it plans to pull out of the North American Class 8 truck engine market by 2010, except for a severe-duty truck and engine in partnership with Navistar International Corp.