Caterpillar’s 2Q Income Jumps on International Demand

Heavy equipment and diesel engine maker Caterpillar Inc. said Tuesday its second-quarter profit rose 34%, led by international demand.

Net income rose to $1.11 billion, or $1.74 a share, from $823 million, or $1.24, a year earlier. Sales jumped 20% to $13.6 billion, Caterpillar said in a statement.

Developing international markets may grow more than six times as fast as in North America, while in the U.S. it may be “difficult for the economy to avoid a recession,” the company said.

Sales for on-highway truck applications rose 13% from a weak second quarter last year, and demand is below historic norms due to the slowing U.S. economy that has reduced freight tonnage, Caterpillar said.

Caterpillar said last month that it would exit the heavy-duty diesel engine market for truck engines and would not make engines to meet looming 2010 federal emissions standards.

For the full year, the company said it expects sales of about $50 billion and a profit of about $6 per share, compared with a previous outlook of $47.2 to $49.5 billion in sales and a per-share profit of $5.64 to $6.18.