Heavy machinery manufacturer Caterpillar said Thursday that its second-quarter earnings shot up 91 percent on a big increase in sales of equipment for industries like mining, infrastructure and energy.
The company, considered a bellwether of industrial activity, also raised its 2010 profit outlook Thursday, saying orders are growing and production of its signature black-and-yellow equipment will increase in the second half of the year. Caterpillar CEO Doug Oberhelman noted "significant economic concerns" that remain globally, but remained optimistic.
"We continue to be positive about the longer-term prospects for many of the industries we serve," he said.
Caterpillar Inc. had net income of $707 million, or $1.09 per share. That was up from $371 million, or 60 cents per share of profit a year ago.
Sales rose 31 percent to $10.4 billion, with Caterpillar reporting gains in machinery sales in all four global regions it serves.
Analysts were looking for 85 cents per share of earnings on revenue of $9.8 billion.
For all of 2010, Caterpillar expects to earn between $3.15 to $3.85 per share, up from a previous forecast of $2.50 to $3.25 per share. It also tightened its revenue forecast, bumping up the lower range by $100 million. Caterpillar now expects between $39 billion to $42 billion in revenue.
Analysts foresee $38.92 billion of revenue.
Caterpillar, which makes equipment ranging from backhoes to engines, suffered during the recession as industries like construction contracted sharply. Dealers cut their inventories of equipment and the company was forced to lay off thousands of workers.
But sales began ramping up early this year, a sign that the economic recovery was under way as governments poured money into stimulus projects like roadwork and companies cautiously started to spend money again.
The company is seeing a resurgence in areas like Asia due to China's brisk growth and in sectors such as mining because of a rebound in commodity prices.
