Construction equipment giant, Caterpillar Incorporated on Tuesday said that its second-quarter profit fell 66 percent as the recession continued to erode sales of its machines and engines. But the company boosted its 2009 profit forecast, saying it is seeing signs of stabilization it hopes will lead to economic recovery. It also sees indications that government stimulus plans, particularly in China, “are beginning to work.” Caterpillar shares jumped $4.27, or nearly 12 percent, to $40.92 in pre-market trading. The Peoria, Illinois-based global company, a component of the Dow Jones Industrial Average, said its quarterly profit slid to $371 million, or 60 cents per share, for the three months ended June 30. That compares with $1.11 billion, or $1.74 per share, in the year-earlier period. Revenue dropped 41 percent to $7.98 billion, led by a 43-percent decline in equipment and engine sales. Excluding costs related to job cuts, Caterpillar earned 72 cents per share.
