Caterpillar’s Q2 Profit Rises Sharply (CAT)

PUBLISHED: Jul 25 2012 @ 09:07 | Comments (0) | More info about Ed Liston

Construction and mining equipment maker Caterpillar Inc. (NYSE:CAT) today reported a 67% increase in its second-quarter profit, driven by increasing demand for its equipments. The Peoria, Illinois-based company also raised its outlook for the full year, sending the stock higher in early trading today.

CAT’s results are significant as they are seen as a gauge of industrial activity.

For the second quarter of 2012, CAT reported net income of $1.7 billion, or $2.54 per share, compared to $1.02 billion, or $1.52 per share reported for the same period in 2011. Revenue for the quarter jumped 22% to $17.37 billion.

The company’s second-quarter earnings and revenue beat the consensus forecast.

Looking ahead, Caterpillar now expects earnings of $9.60 per share for the full year. This compares to the previous forecast of $9.50 per share. Analysts have forecast CAT’s full-year earnings at $9.54 per share. However, the company has lowered its revenue forecast. It now expects full-year revenue to be between $68 billion and $70 billion, compared to previous forecast of $68 billion to $72 billion.

CEO Doug Oberhelman said that the company is ready to cut costs if the economy does weaken substantially.

CAT stock is up more than 4% in early trading today.

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