Earnings: Caterpiller | Eli Lilly |

Caterpillar Earnings Rise

CHICAGO (Reuters) - Industrial giant Caterpillar Inc. (CAT) Friday said second-quarter earnings rose, and the company raised its outlook for the full year.

The heavy equipment maker reported a profit of $1.046 billion, or $1.52 a share, compared with $760 million, or $1.08 a share, a year earlier.

Sales rose 13 percent to $10.605 billion, the company said.

Analysts, on average, expected the Peoria, Illinois-based company to report earnings of $1.42 a share on sales of $9.74 billion, according to Reuters Estimates.

Caterpillar stock has risen about 20 percent this year through Thursday's close, outperforming its peers on the S&P machinery subindex , which are up, on average, about 10 percent.

Caterpillar trades at about 11.7 times estimated 2007 earnings, a slight discount to its peers on the index, which trade, on average, closer to 12 times estimated 2007 earnings.

Eli Lilly Nips Estimates

NEW YORK (Reuters) - Eli Lilly and Co. (LLY) Friday reported a second-quarter profit, fueled by strong revenue growth of newer drugs, including an almost doubling of sales for its Cymbalta depression treatment.

The company said, however, that 2006 sales would be at the low end of it previous target, although it is on track to meet its 2006 profit target.

Lilly said it earned $822 million, or 76 cents per share, compared with a loss of $252 million, or 23 cents per share, in the 2005 period -- when it took a hefty charge for a product liability settlement and legal costs related to its Zyprexa schizophrenia drug.

Analysts on average expected 75 cents, according to Reuters Estimates.

Sales of the Indianapolis drugmaker rose 5 percent to $3.87 billion, in line with Wall Street expectations.

Revenue from Cymbalta jumped 92 percent to $310 million, helped by launches in new countries and higher demand in the United States.

Strattera, for attention deficit disorder, posted sales of $144 million, a 17 percent increase from the 2005 period, when wholesalers had cut back on purchases of the drug. Demand for the pill had waned over the past year due to warnings inside the packaging that it may increase risk of suicidal thoughts in children.

Global sales of schizophrenia drug Zyprexa, Lilly's biggest product, rose 2 percent to $1.12 billion. Lilly said prescriptions have held steady in the United States, despite investor concerns that weight gains caused by the drug would seriously erode demand.

For full-year 2006, Lilly said it expects sales growth at about "the low end" of its previous forecast of 7 percent to 9 percent. It projected third-quarter earnings of 77 cents to 79 cents per share, and reaffirmed it expects 2006 earnings of $3.10 to $3.20 per share. It earned $2.87 per share last year.

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