"We're pleased with our second-quarter results," Oberhelman said in earnings report, "particularly the improvement in profit" as Caterpillar booked earnings per share of $1.57, up from $1.45 a year earlier. Excluding a restructuring hit, profit was $1.69 per share.
The sales picture was cloudy though, with overall revenue down 3.2% to $14.2 billion. The second-quarter decline marked the sixth time in the last seven quarters that sales were down year-over-year, with the only break in the streak a slim 0.2% gain in the first quarter.
Caterpillar attributed the latest sales decline to weakness in the resources business, where sales dropped 29% on lower demand for mining equipment. The construction side of things was in better shape, with sales up 11% and a sharp 83% increase in profit.
Globally, Caterpillar said declines in its Asia/Pacific and Latin America segments were offset to some degree by gains in North America. The mining weakness cut Asia/Pacific sales by 14% from a year ago, largely owing to slowing demand in China, while Latin America sales dropped 16% because of the mining hit. North American sales, driven largely by better U.S. demand for the company's construction equipment rose 6%.
"We understand that we don't control the economy or the timing of a turnaround in mining," Oberhelman added, pointing to the company's focus on cost control and stock buybacks -- $2.5 billion planned in the third quarter -- in order to manage through the current period of challenging global growth.
Caterpillar's outlook remains upbeat on earnings, with EPS now expected to hit $5.75 in 2014, up from a previous call for $5.55. Excluding about $400 million in restructuring costs, earnings are expected to hit $6.20 per share, from $6.10. Sales are still expected to be mostly flat from 2013, somewhere in the $54 billion to $56 billion range.
Oberhelman touted the improvement in the company's bottom line despite the lackluster economic growth around the world, but another quarter of falling sales hit the stock price Thursday morning.
Shares of Caterpillar, which were down 2.8% at $105.40 at the opening bell, have been a winner in 2014 with a 19.3% rise. That's good for third-best on the Dow Jones industrial average behind