Caterpillar posted growing quarter earnings; however, they missed analysts expectations. Caterpiller also issued warnings lowering its next year earnings outlook suggesting that the houing downturn was spreading to other parts economy. Caterpillars shares dropped over 5%.

James Owens reported Tuesday that the American housing market is in its worst condition since World War II, and that he expects conditions to worsen further next year. Owens announced at an event hosted by the Executives' Club of Chicago that the housing bubble would take time to work through.

Caterpiller declared a 36 cent dividend to be payable on November 20th 2007. This dividend is the same amount as last quarter 20 percent higher then a year ago. Caterpiller has paid quarterly dividends every quarter since 1933. Jim Owens, Caterpiller's CEO, reported the companies strong global footprint and diversified service businesses are producing solid financial returns.

Tuesday, Caterpillar announced plans to manufacture disel engines in China. It should provide the capacity to produce approximately 100,000 disel engines per year. The company said, their plan to produce these engines in China was an indicator to their long-term commitment for the Asian market. Caterpillar is one of many companies that is looking towards the Asian economy for global growth.

Caterpillar Inc. case regarding worker benefits has been granted class-action status by a Tennessee federal judge.