Caterpillar posted $11,331 million in revenue in the second quarter compared to $10,342 million in the second quarter of 2016, nearly a $1 billion increase amounting to 9.6 percent. Second quarter 2017 profit per share was $1.35 compared with $0.93 per share in the year-ago quarter.

The Machinery, Energy & Transportation division had an operating cash flow of $2 billion during the quarter and its debt-to-capital ratio improved to 38.6 percent, compared with 41.7 percent at the end of the first quarter of 2017. In June, the company announced a quarterly cash dividend increase and ended the quarter with an enterprise cash balance of $10.2 billion.

“Our team delivered an impressive quarter,” said Caterpillar CEO Jim Umpleby. “While a number of our end markets remained challenged, construction in China and gas compression in North America were highlights in the quarter. Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions.”

As a result of increased demand across many end markets and disciplined cost control, Caterpillar is raising its 2017 outlook. In April 2017, Caterpillar provided an outlook range for full-year 2017 sales and revenues of $38 billion to $41 billion with a midpoint of $39.5 billion. The company is raising its full-year 2017 expectations for sales and revenues to a range of $42 billion to $44 billion with a midpoint of $43 billion.

Caterpillar acknowledges some risks in the outlook, including weakness in the Middle East and Latin America, as well as geopolitical and commodity risk.

Caterpillar attributed its sales increase to higher end-user demand for construction equipment. Favorable price realization in the Construction Industries division also contributed to improvement in sales. Sales volume for Resource Industries increased because of improved end-user demand for aftermarket parts and the favorable impact of changes in dealer inventories.

Sales increased in Asia/Pacific, North America and Latin America, and were about flat in Europe, Africa and the Middle East. Asia/Pacific sales increased 25 percent primarily because of an increase in construction equipment sales in China, resulting from increased infrastructure and residential investment.

In North America, sales jumped 7 percent because of higher demand for aftermarket parts and construction equipment, partially offset by the unfavorable impact of changes in dealer inventories as dealer decreased inventories more in the second quarter of 2017 than in the second quarter of 2016.

Sales leaped 20 percent in Latin America primarily because of stabilizing economic conditions in several countries in the region that resulted in improved end-user demand from low levels.

Operating profit for the second quarter of 2017 was $1.251 billion, compared with $785 million in the second quarter of 2016.

Sales were basically flat in the power generation market as a slight increase in North America was mostly offset by decreases in other regions.