New York - Construction machinery giant Caterpillar Inc. reported Tuesday that its third quarter net income weighed in at 404 million dollars, down 53 per cent from a year earlier, in a performance which was better than expected.

The Peoria, Illinois-based maker of bulldozers and excavators said the earnings came on sales of 7.3 billion dollars, down 44 per cent from the same quarter of 2008.

But while the declines were hefty, the company was now confident that it can start turning itself around again after its period of job-slashing and cutting back on inventories and capacity.

In a statement, company CEO Jim Owens said "we believe the third quarter marked the low point for Caterpillar sales and revenues in what has been the toughest recession since the 1930s.

"We are seeing encouraging signs that indicate a recovery may be under way," Owens added. (dpa)