Caterpillar Exceeds Expectations on Strong Global Sales
Strong global sales helped Caterpillar post better-than-expected profits for the second quarter. The company is seeing strong gains in the sales of construction and mining equipment and notes that it expects improvement for the rest of the year.
"While we're expecting a record year in 2012, we understand the world is facing economic challenges, and if it becomes necessary, we are prepared to act quickly," chairman and chief executive Doug Oberhelman said in a statement. "The good news is, this doesn't feel like 2008."
The maker of construction equipment reported a profit of $1.67 billion during the quarter, up from $1.02 billion during the same period last year. The largest sales improvement was in North America. Sales grew 31 percent thanks to firms upgrading their equipment. Construction spending is improving in the U.S., May saw the highest spending levels in over two years, giving the industry hope for sustainable growth.
Globally, Caterpillar sees reason to be optimistic for 2013. Easing monetary policies in the emerging economies of Brazil and China are likely to help encourage spending as the economy bounces back. Sales in Asia grew 25 percent for the quarter, in part due to large gains in Australia and other countries, The Associated Press reported.