Caterpillar breaks 2Q profit but shares tumble

The Caterpillar profit second quarter increased by 44% and with a strong demand for its heavy equipment, the company bumped up its prospects for the entire year Friday.But benefits falls just shy of Wall Street estimates and the crumpled shares 6% in premarket trading.The Peoria, Illinois, company said that it generated net income or $1.52 per share $ 1.02 billion. It is of 707 million, or $ 1.09 per share, a year ago.The acquisition of Bucyrus International cut into profit. Without it, the earnings per share would be $1.72. Analysts expected $1.74 per share.Income increased by 37% to $ 14.2 billion, easily topping Wall Street estimates.Caterpillar plans sales of 2011 between 56 billion and $ 58 billion with Bucyrus. Previously, he predicted sales between $52 - billion and-$ 54 billion.Caterpillar said, however, that the overall growth of sales that would have added 50 cents to its earnings per share this year negatively offset costs associated with the agreement of Bucyrus.Gains of Caterpillar are an indicator of the health of the global economy, because it is major manufacturer the most of the construction and mining equipment. When the economy is growing, Caterpillar sells more backhoes, engines and mining equipment.President and CEO Doug Oberhelman, Caterpillar said the economic recovery in the United States is still lower than expected, but the company always predicted a moderate U.S., growth especially once the leaders of the nation to agree on the limit of debt and trade policy.Even if the US economy continued to bombard the long, Caterpillar expects strong growth to continue in the developing countries in Asia, Latin America, the Middle East and Africa. So robust sales of construction and mining equipment of the company is expected to continue.Oberhelman said he believes that the current lack of confidence in the U.S. business climate is the main obstacle to a recovery stronger. "Lack of clarity on U.S. deficit reduction plan, trade policy, regulation, much needed tax reform and the absence of a long-term plan to improve the infrastructure of deterioration of the country create not an environment that provides our customers with the confidence to invest, Oberhelman."We are confident that as a country we will eventually do things"", and we are positioning Caterpillar to be ready when we do".Shares in the company fell $6.40 to $105.20(3) before the market opened in e-commerce.