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PEORIA, Ill. (AP) — Caterpillar's second-quarter net income rose 4.1 percent even as revenue slipped.
The construction equipment company's adjusted profit topped Wall Street's view, but revenue fell short. It also boosted its full-year earnings forecast.
Caterpillar — which also makes power systems that include large electrical generators and locomotive engines — earned $999 million, or $1.57 per share, in the quarter. A year earlier it earned $960 million, or $1.45 per share.
Removing restructuring costs, earnings were $1.69 per share. Analysts polled by FactSet predicted $1.51 per share.
Revenue for the Peoria, Illinois, company dropped 3.2 percent to $14.15 billion from $14.62 billion. Wall Street expected $14.45 billion in revenue.
Caterpillar Inc.'s stock fell $1.97, or 1.8 percent, to $106.41 in premarket trading Thursday about an hour ahead of the market open.
The company dealt with softer sales in its resource industries segment, as there was lower demand for mining equipment.
Sales fell in Latin America and the Asia Pacific region. This was somewhat offset by higher sales in North America. Sales for Europe, the Middle East and Africa were basically flat.
Looking ahead, Caterpillar now anticipates a 2014 adjusted profit of $6.20 per share, up from a previous outlook of $6.10 per share. Analysts foresee $6.18 per share.
The company also narrowed its revenue guidance for the year. Caterpillar now expects revenue in a range of $54 billion to $56 billion. Previously it predicted revenue between $53.2 billion and $58.8 billion.
Wall Street is calling for $56.16 billion in revenue.
Caterpillar plans to buy back about $2.5 billion shares in the third quarter. The stock repurchase is part of a $10 billion buyback program approved by its board in the first quarter. Caterpillar repurchased about $1.7 billion shares in the first quarter.
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