Caterpillar is reporting an increase in profit for the second quarter of this year, but lower sales and revenues.
The company announced a profit per share of $1.57. That’s a more than 10 cent increase from the same time last year. Sales and revenues were just more than $14.15 billion, a more than three-percent decrease from 2013 numbers.
Caterpillar CFO Brad Halverson says the increase in profit is attributable to the company’s diversity.“You know we are cyclical, but we are diverse. so energy and transportation business is strong, our construction business is improving and their margins are improving. So without the mining business in resource industries, we still have the diversity globally and across segments. That’s a big plus.”
Halverson says the company’s execution is also strong and consistent, including substantial operational improvements toward profitability, cost reductions and cash flow.
The company has tightened its outlook for sales and revenues for the year with a range of $54 to $56-billion. That beats the previous outlook by $2-Billion. Caterpillar is also anticipating a 2014 profit of $5.75 per share. That’s a 20-cent increase from the previous outlook.
Corporate incentive pay to employees is also expected to be double what it was last year.