Caterpillar posted disappointing quarterly results and cut its 2013 profit forecast yesterday to reflect a drop in demand for heavy equipment from its mining customers, and its shares turned lower in early trading.

But chairman and chief executive Doug Oberhelman said the mining sector has hit bottom and production was expected to ramp up in the second quarter, based on lower inventories in China and the US.

He said it now expects to report a 2013 profit of $7 per share on sales of $57 billion to $61 billion. That was down from a previously estimated profit of between $7 and $9 a share on sales of $60 billion to $68 billion.

The news came as Caterpillar, the world's largest maker of construction and mining equipment, reported a weaker-than-expected first-quarter profit. – ( Reuters )