22 November 1999
Caterpillar share price falls

CATERPILLAR, the manufacturer of earthmoving, mining and agricultural equipment, has suffered a 12% drop in its shares after issuing a profits warning.

The Lex column of the Financial Times says the problem appears to have been the companys attempt to force through a price rise which has hit volumes — and now forced it to cut prices again, anyway.

The column expects profits to drop by about a third this year.