Caterpillar 2Q profit jumps 44 pct on strong sales

By JOSH FUNK | July 22, 2011 | 8:15 AM EDT

Caterpillar says its second-quarter profit grew 44 percent and with strong demand for its heavy equipment, it is bumping up its outlook for the entire year.

But it still fell just shy of Wall Street estimates and shares tumbled almost 7 percent in premarket trading.

The Peoria, Ill., company said Friday it generated $1.02 billion net income, or $1.52 per share. That's up from $707 million, or $1.09 per share, a year ago.

The acquisition of Bucyrus (byoo-SY'-rus) International cut into profit. Without it, profit per share would have been $1.72. Analysts expected $1.74.

Revenue grew 37 percent to $14.2 billion, easily topping Wall Street estimates.

Caterpillar predicts 2011 sales between $56-and-$58 billion with Bucyrus. Previously, it predicted sales between $52-and-$54 billion.

Shares are down $6.66 at $ 104.94.