New York - The world's largest construction equipment manufacturer, Caterpillar Inc, saw profits fall in the third quarter on higher raw material and energy costs and the effects of a weaker global market, the company said Tuesday.

Earnings fell more than 6 per cent to 868 million dollars, the Peoria, Illinois-based manufacturer said.

Revenue rose by 13 per cent to 12.98 billion dollars on higher prices, favourable exchange rates and demand in developing countries as the weak US housing market damaged domestic sales. (dpa)