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News Summary: Tough 2Q, and year, for Caterpillar

The Associated Press

ROCK AND A HARD PLACE: A sharp drop-off in the mining business is hurting Caterpillar Inc. Second-quarter profits came in lower than expected, and it cut its full-year profit guidance.

DEALERS DOWN: Caterpillar dealers are responding to the slowdown by selling what they can — and not replacing it. Caterpillar said dealer inventories fell more than expected, and are expected to keep falling in the second half of this year.

DIG IT: Maybe a better 2014? Caterpillar said the under-selling to mining companies this year should translate into more demand next year.