Caterpillar Inc. cut its earnings forecast and posted profit that trailed analysts’ estimates for a third straight quarter as mining-equipment sales declined on slower commodity demand from emerging markets.
Ralph Whitworth , the activist investor who pushed Home Depot Inc. to sell assets and undertake a $22.5 billion stock-buyback program, is setting his sights on Deere & Co. , said a person with knowledge of the matter.
Ralph Whitworth’s proposal to break up Timken Co. helped boost shares of the ball-bearings maker 26 percent in five months. With the stock still trading at a discount to peers, shareholders stand to more than double that gain by voting in favor of his plan in May.
Caterpillar Inc., the largest maker of construction and mining equipment, has provided the best risk-adjusted return among its peers since financial markets hit bottom in 2009 as it made acquisitions and expanded in emerging markets such as China.
Timken Co., the bearings maker that trades at the lowest earnings multiple among its peers, is costing shareholders the chance to recoup $1.3 billion in market value lost this year by not spinning off its steel unit.