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Caterpillar keeps on digging its credibility gap

A worker operates a Caterpillar Inc. hydraulic excavator during the final stage of construction on the Tunnel Rio 450 project in Rio de Janeiro, Brazil.
Dado Galdieri | Bloomberg | Getty Images
A worker operates a Caterpillar Inc. hydraulic excavator during the final stage of construction on the Tunnel Rio 450 project in Rio de Janeiro, Brazil.

Caterpillar keeps digging deeper its credibility gap with investors. The $46 billion earth-moving giant warned that full-year sales and profit would be lower than originally forecast, and reported a big slump in quarterly income. It's the latest in a series of stumbles — including buying into mining at its peak and splurging on buybacks when its stock price was high — that suggest Chief Executive Doug Oberhelman isn't a great judge of his own business cycle.