Caterpillar Inc. (NYSE: CAT) reported second-quarter 2014 results before markets opened Thursday. The heavy equipment firm posted adjusted diluted earnings per share (EPS) of $1.69 on revenues of $14.15 billion. In the same period a year ago, the company reported adjusted EPS of $1.45 on revenues of $14.62 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.53 and $14.46 billion in revenues.

The company’s adjusted EPS excluded restructuring charges of $0.12 a share.

Caterpillar reaffirmed its previous guidance that 2014 sales will total $54 billion to $56 billion, compared with $55.66 billion in 2013. This is narrower and the mid-point is lower than previous guidance. The company now thinks that its total EPS for the year, excluding restructuring costs, will be $6.20, up from a previous estimate of $6.10.

Sales of mining equipment is expected to remain low in the second half of the year. Caterpillar said it has seen no evidence of an upturn in the business, but because sales are so low the company doesn’t think it will get worse. The company also expects weaker sales in its construction segment, which had previously been pegged for 10% growth.

The company’s CEO said:

Three key things are contributing to the continuing strength of our financial results — the diversity of our businesses, substantial success in operational improvements through the execution of our strategy and the strength of our cash flow and balance sheet. … We understand that we don’t control the economy or the timing of a turnaround in mining. That’s why we’ve been so focused on executing our strategy and improving our operational performance, which have helped us control costs with year-to-date manufacturing costs and SG&A and R&D expenses improving nearly $500 million.

Reining in costs has helped Caterpillar post a better-than-expected profit in each of the past two quarters. There is, however, a limit to how much cost can be wrung out of a company. Sooner or later the company has to sell more. When that day is coming for Cat remains to be seen.

Caterpillar also said that it will repurchase $2.5 billion in stock in the third quarter. The board and management think that should help soothe the sting of slumping sales. Maybe it will.

Caterpillar shares were down about 1.5% in premarket trading, at $107.00 in a 52-week range of $81.35 to $111.46. Thomson Reuters had a consensus analyst price target of around $112.50 before the report.

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