Despite softer U.S. markets for construction equipment and truck engines, Caterpillar Inc. reported an 11% increase in profits for the second quarter of 2000.

Net income was $315 million versus $283 million second quarter 1999. Sales were $5.36 billion, up 5% from last year.
Engine sales were $1.74 billion, up 8% from second quarter 1999. The majority of the gain came from stronger sales into power generation as demand for electric power products increased in most areas of the world.
The company said its outlook for 2000 remains unchanged from first quarter when it forecast only a moderate increase in sales and an 8-15% increase in profits. It’s engine sales this year are expected to exceed 1999 levels due to stronger demand for power generation, higher sales into the petroleum market and a higher share of medium and heavy duty truck engine market.