Key Developments: Caterpillar Inc (CAT)
87.67USD
17 May 2013
$0.89 (+1.03%)
$86.78
$87.39
$87.86
$87.10
6,693,167
7,174,141
$99.70
$78.25
Latest Key Developments (Source: Significant Developments)
Caterpillar Inc And Mining Machinery Limited Announce Settlement Agreement Related To Siwei Acquisition
Caterpillar Inc and Mining Machinery Limited announced that they have resolved all outstanding issues between them arising out of Caterpillar's acquisition of ERA, including wholly owned subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing Co., Ltd., commonly known as Siwei. Caterpillar reached this agreement with two former directors of ERA, Emory Williams and John Lee, and two other parties with an interest in the settlement, Mining Machinery Limited and James Thompson III (collectively the MML Parties). As part of the resolution of outstanding issues between the parties, Caterpillar's total outstanding obligations of $164.5 million to the MML Parties, which were part of Caterpillar's obligations relating to acquisition of ERA, were reduced by $135 million to $29.5 million. In addition, Caterpillar and the MML Parties have mutually released all their claims relating to the acquisition of ERA. In addition to entering into the settlement agreement, Caterpillar has agreed that a company affiliated with the MML Parties may purchase from Siwei certain receivables and other assets. Full Article
Caterpillar Inc Announces $1 Billion Accelerated Stock Repurchase Program
Caterpillar Inc announced it has entered into a definitive agreement with Citibank, N.A. to purchase shares of its common stock under an accelerated stock repurchase program. Pursuant to the accelerated stock repurchase agreement, Caterpillar has agreed to repurchase $1 billion of its common stock from Citi, with an immediate delivery of approximately 11 million shares based on current market prices. The final number of shares to be repurchased and the aggregate cost to Caterpillar will be based on Caterpillar's volume-weighted average stock price during the term of the transaction, which is expected to be completed in June of 2013. In February 2007, the Board of Directors authorized the repurchase of $7.5 billion of Caterpillar stock and in December 2011, the authorization was extended through December 2015. Through the end of 2008, $3.8 billion of the $7.5 billion authorization was spent and no shares of stock have been repurchased since then. Full Article
Caterpillar Inc Lowers FY 2013 Revenue Guidance; Updates FY 2013 EPS Guidance To A Range Below Analysts' Estimates
Caterpillar Inc announced that it has revised its outlook for fiscal 2013 to reflect sales and revenues in a range of $57 to $61 billion, with profit per share (EPS) of about $7.00 at the middle of the sales and revenues outlook range. The previous outlook for fiscal 2013 sales and revenues was a range of $60 to $68 billion and profit per share of $7.00 to $9.00. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report revenue of $62.6 billion and EPS of $7.6 for fiscal 2013. Full Article
Caterpillar Inc Maintains Quarterly Dividend
Caterpillar Inc announced that its Board of Directors voted to maintain the quarterly cash dividend of $0.52 per share of common stock, payable May 20, 2013, to stockholders of record at the close of business, April 22, 2013. Full Article
Caterpillar Inc Lays Off 460 Workers-Reuters
Reuters reported that Caterpillar Inc was laying off 460 workers at a U.S. plant that makes mining equipment. The layoffs will affect about 11% of the workforce at the Decatur, Illinois, factory and reflect softening demand from the global mining industry, which is cutting back on capital investment because of a retreat in commodity prices. The job cuts would take effect in 60 days. Full Article
Caterpillar Inc Plans To Cut 1,400 Jobs In Belgium-Reuters
Reuters reported that Caterpillar Inc plans to cut 1,400 jobs at a plant near Charleroi in Belgium, the group's Belgian unit said. The cuts will come at the Gosselies site just outside of Charleroi. The site employs 3,700 people. Full Article
Caterpillar Inc Issues FY 2013 Guidance In Line With Analysts' Estimates
Caterpillar Inc announced that for fiscal 2013, it expects sales and revenues in a range of $60 to $68 billion and profit per share (EPS) in a range of $7.00 to $9.00. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report revenue of $65 billion and EPS of $8.54 for fiscal 2013. Full Article
Caterpillar Inc Maintains Quarterly Dividend
Caterpillar Inc announced that it voted to maintain the quarterly cash dividend of$0.52 cents per share of common stock, payable December 31, 2012 , to stockholders of record at the close of business, December 24, 2012. Full Article
Caterpillar Inc and Ariel Corporation Create Joint Venture To Provide Complete Pressure-Pumping Solutions to Global Oil and Gas Customers
Caterpillar Inc and Ariel Corporation announced the formation of a 50-50 joint venture that will provide well service pressure pumping products for customers in the global oil and gas industry. The combined venture, Black Horse LLC, also announced the acquisition of pump manufacturer ProSource of Houston, Texas . Full Article
Chemtura Corp Announces Joint Development Agreement With Caterpillar Inc For Duracast Technology Application
Chemtura Corp announced it has entered into a joint development agreement with Caterpillar Inc for applications of Chemtura’s Duracast hot-cast urethane pre-polymer technology for construction and mining equipment. The joint development agreement focuses on several applications in construction and mining equipment where urethanes have not previously been used, with the objective of providing value through productivity and efficiency gains. Initial products to be jointly developed include non-pneumatic tires for certain Cat machines. Prototype development is under way with field evaluation expected to begin by early 2013. Full Article
China deal ends distraction, but not questions, for Caterpillar
CHICAGO - Caterpillar Inc's deal to cut the purchase price of a Chinese mining-equipment maker it bought last year ends an embarrassing episode that overshadowed the company's effort to expand in China and distracted its executives for months.
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