Caterpillar has connected with its long-term partner, Rimco, to become the official dealer of CAT equipment to Cuba. Following loosening of some trade laws by Obama administration, Caterpillar has jumped into the scene instantly and is all poised to enter the Cuban market the moment the restrictions are off. The earth movers have been lobbying for lifting the Cuban trade embargo for a long time now.
The slump business in the mining industry had led Caterpillar to reduce its revenue expectation for this year. The latest revenue projection is $48 billion which is 25 percent lower compared to the last 4 years. The reduction means not only the company will suffer, but its heavy machinery parts supplier is feeling the effects too.
The closure of the US Export-Import Bank (EXIM) charter is forcing the US companies to explore business options overseas. Major aerospace companies, which have been benefiting from export financing and other encouraging schemes from EXIM, are in favor of shifting out of the US. General Electric (GE) has already firmed up to its plan to set up $400-million turboprop engine in Europe. Aerospace Industries Association (AIA), the largest US aerospace trade group, expresses concerns that many aviation companies are losing their competitiveness in the absence of support from EXIM. However, conservative Republicans are against EXIM charter as it's confined to only three major companies.
Amid market volatility, there are stocks investors shouldn't miss to buy, and there are those that are considered dead money that should be sold. Investor Place's editor Jeff Reeves reveals which stocks must be sold right now.
Caterpillar, Inc. (CAT.N) will lay off another 50 workers at its East Peoria, Illinois campus on Monday because of a downturn in demand for mining equipment, the company said.
World stock indexes fell on Tuesday following disappointing company earnings, while the dollar retreated after an unexpected decline in U.S. durable goods orders.
Caterpillar, Inc. faces bleak prospects this year as inventories get reduced and mining demand weakens.
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