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.Now, analysts say, comes the hard part: Proving to investors that ERA Mining Machinery, the Chinese maker of hydraulic roof supports that Caterpillar purchased, really can help penetrate China's huge underground mining market.In January, Caterpillar took a $580 million impairment related to the ERA deal after discovering what it characterized as a "deliberate, multi-year, coordinated accounting misconduct" at Siwei, a subsidiary that handled ERA's principal business.Late on Thursday, Caterpillar said it reached a deal with the former controlling shareholders of ERA to cut $135 million from the $886 million purchase price - a move welcomed by analysts even if the money involved was, in the words of one, "a blip" in the U.S. company's overall finances.
Caterpillar Inc. (Caterpillar) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Shares of CAT traded higher by 1.03% or $0.89/share to $87.67. In the past year, the shares have traded as low as $78.25 and as high as $99.70. On average, 7180660 shares of CAT exchange hands on a given day and today's volume is recorded at 6684882.
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