P.M. BRIEFING : Caterpillar Lowers Earnings

Caterpillar Inc. today revised its earnings estimates for 1990 downward, blaming a slump in the Brazilian economy and a slower-than-expected internal reorganization.

The company said earnings will be “substantially lower” than 1989 earnings of $497 million or $4.90 per share. Second-quarter profits, bearing the brunt of Brazil’s downturn and a consequent decline in the fortunes of the company’s Caterpillar Brazil unit, are now expected to be less than half the earnings of $99 million, or 97 cents a share, earned in the first quarter, the company said.

The company said continued implementation of its reorganization should improve earnings in 1991 unless the Brazilian economy worsens further.

Caterpillar, which makes bulldozers, tractors and other heavy equipment, also cited lower sales volume and the weakening yen as contributing factors in the earnings decline.