Caterpillar Inc. (NYSE:CAT) exceeded analysts' expectations by a large amount this quarter, as revenue for its four global regions increased for the period.
Earnings for the second quarter increased to $707 million, or $1.09 a share. Analysts were looking for $0.85 a share. Profits last year reached $371 million, a gain of over 90 percent this year. Revenue was up to $10.4 billion, a major improvement over the same quarter last year where they generated $8 billion in revenue.
Segments which performed the strongest including energy, mining and infrastructure-related equipment. Regions generating the biggest increase in sales included Asia/Pacific and Latin America.
Kent Adams, Cat Financial president and vice president of Caterpillar Inc., said this, "During the second quarter, portfolio quality began to show signs of improvement as economic conditions around the world continued to improve. Our focus in 2010 has been in three key areas: serving our Caterpillar customers and dealers, managing the portfolio and ensuring we have ample liquidity. While there are still economic concerns around the world, we are well positioned to support our customers as the recovery gains momentum."
CEO Doug Oberhelman also gave improved guidance for 2010, saying, "There are significant economic concerns around the world that we are watching closely, orders have continued to outpace our shipments, and we expect to increase production in the second half of the year."
Most the areas that the company excelled in came from good prices in the quarter, in relationship to mining, and building programs from the government for infrastructure projects.
Prices have fallen for commodities this quarter, and infrastructure projects in some areas have been cut back on.
Those factors could hold the company back from growth for the remainder of the year, as the economic outlook continues to be gloomy around the world, despite the assertions of an ongoing recovery, which really isn't happening.
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