PEORIA, Ill. — Who needs highway engines?

Driven by robust growth in emerging markets around the world and strength in key industries like energy and mining, Caterpillar reported all-time records for sales and revenues.

Profit per share for the second quarter of 2008 was $1.74, a 40 percent increase from in the second quarter of 2007. Sales and revenues of $13.624 billion were 20 percent higher than second quarter 2007 figures.

"While North America remains depressed and we’ve seen softening in Western Europe and Japan, Caterpillar continues to grow in emerging markets and in global industries like energy and mining … and we continue to see good growth in our integrated service businesses," said Chairman and CEO Jim Owens.

Following months of speculation, Caterpillar recently announced that it’s leaving the heavy-duty on-highway truck engine business by 2010, before the next round of EPA-mandated emissions legislation kicks in.

Although the company is exiting the North American over-the-road diesel market, it did reveal that it will partner with Navistar to build a Cat-branded heavy vocational truck, which is expected to hit the market in 2010.

Cat’s bread and butter has always been non-highway
equipment. That’s now true more than ever.

The geographic mix of sales continues to shift outside North America for the company as sales and revenues increased 30 percent outside of the continent compared with 7 percent inside North America.

The full-year outlook for 2008 reflects sales and revenues of about $50 billion and profit of about $6.00 per share — slightly higher than the $47.2 billion predicted earlier.

"Never in my 35 plus years with the company have I seen Caterpillar do so well in the face of such a difficult economic climate in the United States," Owens said. "We are on track to deliver our fifth straight year of record profits despite very tough conditions in the United States, declines in Europe and significantly higher material costs, particularly in the second half of the year.

"Still, … we need to bring additional capacity on line to support world demand for infrastructure, energy and mining, and to be prepared for the upturn in the United States when it comes."