Caterpillar Sees a Promising Second Quarter, Boosts Forecast

Jul 25, 2017

Caterpillar is reporting a 46 percent jump in profits, during its second quarter of 2017.

Total sales and revenue rose 9.6 percent to $11.33 billion. That’s a more than a billion dollar increase, compared to second quarter of last year. Cat also reports profit per share was $1.35, compared to $0.93 in 2016. 

The heavy equipment maker boosted its full-year forecast as ordering activity picked up, sending shares 4 percent higher before Tuesday's opening bell. 

Cat says in a news release the rising figures are a result of its ongoing cost cutting measures, which includes layoffs, as well as an improved demand for construction. 

CEO Jim Umpleby says the company is also investing more in technological improvements that wouldn’t detract from Cat’s bottom line.

"We anticipate making targeted investments in initiatives that are important to our future competitiveness, including enhanced digital capabilities and accelerating technology updates to our products," Umpleby said. "These investments will prepare us to take advantage of the growth opportunities ahead.”

The news comes as the company is still under investigation by the IRS, and top-paying employees are transitioning to the new location in Chicago’s suburbs.