Caterpillar, the world’s largest maker of tractors and excavators, slashed its 2012 forecast for the second time this year and warned the global economy was slowing faster than it had expected.

The cautionary note was the latest in a string of comments from multinational manufacturers, including General Electric Company and Honeywell International that the economic recovery remains tenuous and tepid at best.

Caterpillar's retail dealers are selling off inventories, rather than buying new machines, forcing the company to idle some production at plants earlier this year with additional shutdowns coming, executives said on Monday.

"As we've moved through the year, we've seen continued economic weakening and uncertainty," chief executive Doug Oberhelman said in a statement.

For the third quarter, Caterpillar posted profit of $1.7 billion, or $2.54 per share, compared with $1.14 billion, or $1.71 per share, in the year-ago period.-Reuters