ConDig (26-Jul-17).  Profit at construction equipment supplier Caterpillar Inc shot up 46% in the second quarter as sales increased 10%.

The Peoria, Illinois-based company posted profit of $802 million in the three months ended June 30 compared with $550 million in the same period last year.

It comes as sales jumped to $11.3 billion from $10.3 billion in the second quarter of last year.

Caterpillar ceo Jim Umpleby noted that while a number of end markets still face headwinds, 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,” he added.

Demand for construction equipment in North America, which is the company’s largest market, increased 3% in the quarter.

As a result of increased demand across many end markets and disciplined cost control, Caterpillar said that it was raising its full-year outlook for sales and revenues to a range of $42 billion to $44 billion compared with a previous forecast of $38 billion to $41 billion.

The company is facing some legal cases, including an Internal Revenue Service investigation into profits generated by a Swiss subsidiary and export filings.

Law enforcement conducted a raid of company facilities in Peoria earlier this year. Caterpillar said that it was cooperating with the search and believes its tax position is correct.

The company is moving its Peoria headquarters to the Chicago area. But the construction equipment maker said in April that the majority of the 12,000 manufacturing jobs will stay in Peoria.