Caterpillar reported Q2/14 net income rose to $999 million, up from $960 million a year earlier. Revenue from sales dropped to $14.2 billion from $14.6 billion in Q2/13.

“We’re pleased with our second-quarter results, particularly the improvement in profit. We increased the bottom line despite a weak quarter for our Resource Industries segment, which is principally mining. Three key things are contributing to the continuing strength of our financial results—the diversity of our businesses, substantial success in operational improvements through the execution of our strategy and the strength of our cash flow and balance sheet,” said Caterpillar chairman and chief executive officer Doug Oberhelman.

“Our Construction Industries and Energy & Transportation segments continue to improve. Construction Industries had a good quarter with sales up 11% and operating profit up 83% from Q2/13. The improvement in Construction Industries, along with sales stability and record profit from Energy & Transportation, has helped us improve profit despite the downturn in the mining industry,” added Oberhelman.

The outlook for 2014 sales and revenues has been reasonably consistent with the preliminary outlook that was provided with the third quarter financial release in October of 2013. With half of 2014 now complete, we have tightened the outlook range for the year. The updated outlook for 2014 sales and revenues is a range of $54 to $56 billion. The previous outlook for sales and revenues was $56 billion in a range of plus or minus 5% ($53.2 to $58.8 billion). The range of expectations is tighter and the mid-point of the outlook is slightly lower. Most of the change in the mid-point of the range is in Construction Industries and reflects weaker sales in China, the CIS and in the Africa/Middle East region.

Despite a slightly lower mid-point of the sales and revenues outlook the company is increasing its 2014 profit per share outlook. To provide a better understanding of the company’s expectations for 2014 profit, the profit outlook is being provided with and without anticipated restructuring costs. The expectation for restructuring costs in 2014 is now about $400 million—the bottom end of the $400 to $500 million range that was previously expected. With sales and revenues at $55 billion, the mid-point of the outlook range, the revised profit outlook for 2014 including restructuring costs of about $400 million is $5.75 per share, an improvement from the previous outlook of $5.55 per share. Excluding restructuring costs, the profit outlook is $6.20 per share, an increase from the previous outlook of $6.10 per share.

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