PEORIA, Ill. — Caterpillar reported record second-quarter sales and revenues of $11.3 billion, including a profit of $823 million, despite a decline in domestic on-highway engine sales.
The manufacturers continued strength outside North America was enough to offset weakness in on-highway truck engines and North American construction.
“We’re pleased with second-quarter sales and revenues which demonstrated the strength of our global reach. Sales growth outside of North America largely offset the impact of the planned decline in North American dealer machine inventories, the severe drop in demand for on-highway truck engines and weakness in North American construction markets,” said Jim Owens, chairman and CEO.
Sales and revenues of $11.3 billion increased $751 million from the second quarter of 2006. The increase was partially offset by a $1 billion decline in physical sales volume in North America, which was largely a result of reduced dealer inventory and a sharp decline in on-highway truck sales, according to the manufacturer.
“Disappointing earnings in the second quarter were attributable to the sharp negative swing in on-highway truck engine profitability, weakness in North American machine sales, continued selected supply chain disruptions and higher material costs,” said Owens. “Manufacturing costs were also higher, in part, due to transitional costs associated with the launch of the Cat Production System.”
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