Increased machinery and engine sales and a weak dollar helped Caterpillar Inc. nearly double its profits in the second quarter.
The Peoria, Ill.-based company earned $399 million for the three months ended June 30, up from $5.29 billion in the same period last year.
"Political and economic uncertainty continued in the second quarter, but we made significant progress by focusing on areas we could control. We held the gains on revenue yield, controlled costs and continued to produce quality products our customers value," said Glen Barton, Caterpillar's chairman and chief executive.
Barton said he expects an increase of about 10% for 2003. After the first quarter, he had estimated sales and revenue would be flat to up 4% for the year.
Caterpillar said dealers are updating their rental fleets, helping drive the increase in machinery sales.
Even though machinery and engine sales volume increased, Barton said the manufacturer's sales mix remains a challenge. A stronger Euro and Australian dollar, lower core-operating costs and improved revenue yield helped increase second-quarter profits.
