Caterpillar Q2 profit up 34%; raises FY08 outlook

Tag : and mining equipment
Tuesday morning, construction and mining equipmentmaker Caterpillar Inc. (CAT: News, Chart, Quote ) reported a 34% increase in its profit for the second quarter,helped by robust growth in emerging markets and strength in keyindustries like energy and mining. Earnings per share for thequarter surged 40% from last year. The company also raised itsearnings and revenue outlook for fiscal year 2008.

Faced by commodity headwinds as well as weak U.S. construction androad-building markets, Caterpillar has shifted focus toinfrastructure growth in emerging markets. This has enabled it tooffset weaker U.S. sales. The company has also benefited from itsdiversified industrial base.

Second Quarter Results

For the second quarter, the Peoria, Illinois-based company reporteda profit of $1.11 billion, higher than profit of $823 million inthe year-ago quarter. On a per share basis, earnings for thequarter surged to $1.74 from $1.24 in the same period last year. Onaverage, twenty analysts polled by First Call/Thomson Financialexpected earnings of $1.54 per share.

The company attributed the increase in profit to improved pricerealization and higher sales volume, partially offset by highermaterial and freight costs, in addition to higher selling, generaland administrative expenses as well as research and developmentexpenses.

Total sales and revenue for the quarter climbed 20% to $13.62billion from $11.36 billion in the corresponding period last year.Wall Street analysts had a consensus revenue estimate of $12.69billion.

Caterpillar's sales outside of North America rose 30% and made up60% of total sales. This compares with 55% of total sales in theyear-ago quarter.