Construction and mining equipment manufacturer Caterpillar reduced its profit projections for 2015 from $15-$20 a share to $12-$18 a share.
The company has also puts plans for strategic acquisitions on hold, including the proposed takeover of ERA Mining Machinery in China.
According to Caterpillar, the expenditure tightening measures and lower forecasts have been attributed to the reduced expenditure outlays of commodity producers.
Caterpillar had purchased mining-equipment manufacturer Bucyrus International for $8.6bn in 2011 on the consideration of a consistent demand for commodities.
However, recent events in the industry are hinting at a continued recession, leading to mining majors such as BHP Billiton and Fortescue Metals Group to delay projects and reduce spending drastically.
Caterpillar CEO Doug Oberhelman, speaking at the MINExpo industry conference in Las Vegas, advised restraint over the growth forecasts for 2015.
"We’ve seen a slowing in economic growth that was more than we expected. We think ’13 could look like 2012 in terms of worldwide economic growth,” Oberhelman said.
In July 2012, Caterpillar halted its excavator plant in China for the month and plans a temporary shutdown of an Illinois component plant for a week in December this year.
Oberhelman also revealed that spending on capital and acquisition will be lower during the next few years.