Caterpillar Inc., the largest maker of construction and mining equipment, said it’s considering “all options” to recover losses from false accounting at a Chinese business that led to a $580 million writedown.
Somewhere in the vast interior of China last year, almost a half-billion dollars of cash belonging to Caterpillar Inc. vanished. So how did the company soften the blow when it broke the news to investors?
Caterpillar Inc., Komatsu Ltd. and other construction-equipment makers have built enough capacity in China to satisfy global demand twice over while sales in the country are falling, according to a research company.
Caterpillar Inc. used offshore subsidiaries in Switzerland and Bermuda to avoid about $2 billion in U.S. taxes from 2000 to 2009, boosting its earnings through a “tax and financial statement fraud,” according to a Caterpillar executive’s lawsuit.
Fininvest SpA, the investment company of Prime Minister Silvio Berlusconi, was ordered to pay Compagnie Industriali Riunite SpA more than 540 million euros ($770 million) by an Italian court. Fininvest said it will appeal.
Caterpillar Inc. Chief Executive Officer Doug Oberhelman said he will campaign later this year for a cut in U.S. government debt because the issue affects customers of the largest maker of construction and mining machinery.
Caterpillar Inc. and Vulcan Materials Co., struggling with a near three-year construction decline, are among companies that may benefit most from a $50 billion proposal to rebuild U.S. roads, railways and runways.