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Area of Practice: Lifting and material handling equipment, cranes (overhead, terrain, special), elevating platforms, conveyors. Off-road machinery, earth moving equipment, trench walls stability, drilling equipment. Construction equipment, concrete pouring and vibrating, precast concrete, prestressed concrete production, demolition. Steel structures fabrication, transportation, assembling and erecting, scaffolding. |
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Monday, August 22, 2005
Caterpillar Stock Up on China Expansion
Caterpillar Shares Surge on Plans to Expand Further Into China
Caterpillar Inc. shares surged Friday after the company announced it has partnered with a Shanghai industrial park developer to expand the construction and machinery equipment maker's presence in China.
The Peoria, Ill.-based company said it has signed three nonbinding memoranda of understanding with Shanghai Lingang Economic Development Co. In addition, Caterpillar said it is in discussions with other Chinese manufacturers on future investments.
The announcement was seen as a shrewd move for Caterpillar, which has been targeting business overseas as a way to offset weakening domestic sales. Caterpillar has steadily been increasing its business in China to tap into the nation's expected construction boom.
"These initiatives are tangible examples of our plans for future growth across all lines of Caterpillar's business in China," Chief Executive Jim Owens said in a statement.
The subsidiaries will partner with the Lingang Industrial Area to establish a regulatory system for trade, establish the area as the main remanufacturing center for Caterpillar machines, and set up a service center.
Caterpillar said it first sold products in China in 1975 and three years later opened an office in Beijing, which is now its marketing headquarters. Caterpillar now operates 10 facilities in mainland China -- some of which are wholly owned -- and employs about 2,000 people in that nation.
In December, Caterpillar acquired a minority stake in Shandong SEM Machinery Co., which manufactures wheel loaders. The company is also said to be interested in buying a stake in Xugong Machinery, whose parent Xuzhou Construction Machinery Group Inc. is one of China's industry leaders.
"Our global markets continue to exhibit the fundamental strengths needed for further growth," Owens said after the company released second-quarter earnings in July. "The strength of our markets is clearly not a blip on the radar."
The company reported second-quarter profits of $760 million and sales rose 23 percent to a record $9.36 billion. Machinery sales grew 25 percent in the quarter, while engine sales increased 22 percent and financial products expanded 19 percent. Sales were up worldwide, from 9 percent in Asia and China -- a market Cater
Caterpillar Shares Surge on Plans to Expand Further Into China
Caterpillar Inc. shares surged Friday after the company announced it has partnered with a Shanghai industrial park developer to expand the construction and machinery equipment maker's presence in China.
The Peoria, Ill.-based company said it has signed three nonbinding memoranda of understanding with Shanghai Lingang Economic Development Co. In addition, Caterpillar said it is in discussions with other Chinese manufacturers on future investments.
The announcement was seen as a shrewd move for Caterpillar, which has been targeting business overseas as a way to offset weakening domestic sales. Caterpillar has steadily been increasing its business in China to tap into the nation's expected construction boom.
"These initiatives are tangible examples of our plans for future growth across all lines of Caterpillar's business in China," Chief Executive Jim Owens said in a statement.
The subsidiaries will partner with the Lingang Industrial Area to establish a regulatory system for trade, establish the area as the main remanufacturing center for Caterpillar machines, and set up a service center.
Caterpillar said it first sold products in China in 1975 and three years later opened an office in Beijing, which is now its marketing headquarters. Caterpillar now operates 10 facilities in mainland China -- some of which are wholly owned -- and employs about 2,000 people in that nation.
In December, Caterpillar acquired a minority stake in Shandong SEM Machinery Co., which manufactures wheel loaders. The company is also said to be interested in buying a stake in Xugong Machinery, whose parent Xuzhou Construction Machinery Group Inc. is one of China's industry leaders.
"Our global markets continue to exhibit the fundamental strengths needed for further growth," Owens said after the company released second-quarter earnings in July. "The strength of our markets is clearly not a blip on the radar."
The company reported second-quarter profits of $760 million and sales rose 23 percent to a record $9.36 billion. Machinery sales grew 25 percent in the quarter, while engine sales increased 22 percent and financial products expanded 19 percent. Sales were up worldwide, from 9 percent in Asia and China -- a market Cater
