Caterpillar expects recovery

US construction and mining bellwether Caterpillar reported a 66 per cent slide in second-quarter profit yesterday but upgraded its outlook for the year as cost cuts took effect. Profits fell to $371m (£225.6m) from $1.11bn.  But the firm raised its 2009 forecast to a profit of $2.25 a share, from an April prediction of $1.25.