July 22 (Bloomberg) -- Caterpillar Inc., the world’s largest maker of construction and mining equipment, posted second-quarter profit that missed analysts’ estimates after the Japanese earthquake and tsunami reduced sales and demand slowed in China.
Net income rose 44 percent, to $1.02 billion, or $1.52 a share, from $707 million, or $1.09 a share, a year earlier, the Peoria, Illinois-based company said in a statement today. Profit excluding $204 million in costs related to the acquisition of Bucyrus International Inc. was $1.72, trailing the $1.75 average of 20 analysts’ estimates compiled by Bloomberg. Revenue increased 37 percent to $14.2 billion from $10.4 billion.
Excluding Bucyrus, Caterpillar raised its full-year profit forecast to $6.75 to $7.25 a share from $6.25 to $6.75 previously. It also raised its sales forecast to $54 billion to $56 billion from $52 billion to $54 billion.
Caterpillar is betting on expansion in mining with its $8.8 billion acquisition of Bucyrus, completed this month, and demand for construction machinery in developing countries to help drive growth. The company forecasts earnings of $8 to $10 a share in 2012 as demand for excavators, trucks and wheel loaders grows amid greater consumption of commodities and construction of roads, bridges and buildings in countries such as China, India and Brazil.
The Bucyrus acquisition adds surface and underground mining equipment products to Caterpillar’s portfolio, helping it benefit from rising populations and standards of living in emerging markets. It purchased Electro-Motive Diesel last year and its acquisition of MWM Holding GmbH in Germany is still pending.
--Editors: Simon Casey, Tina Davis.
To contact the reporter on this story: Shruti Date Singh in Chicago at firstname.lastname@example.org.
To contact the editor responsible for this story: Simon Casey at email@example.com.