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Heavy machinery manufacturer Caterpillar has seen a downturn in its U.S. business, as home construction continues to slump. But Cat's large global infrastructure business is more than making up for the weakness here. As a result, analysts expect the company to earn $1.53 per share in the second quarter, compared to $1.24 a year ago.

"Caterpillar's U.S. business is down substantially but its foreign business has been very strong, especially in the emerging nations," said Ingalls & Snyder analyst Alexander Blanton. Last year, 63% of Cat's revenue came from outside the United States.

But not every sector in the U.S. is weak. The mining industry is beginning to rebound from a 25-year low, according to Blanton, and Caterpillar has pounced on that market: orders for mining equipment in the U.S. are already backlogged well into 2009.

Next year, Caterpillar will be introducing some manufacturing initiatives that should improve business and make the company more efficient, said Blanton. And when the homebuilding industry eventually recovers, Caterpillar will be there to sell its machines, just as it did for the mining industry.

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