), the manufacturer of construction and mining equipment, revealed
Thursday that it has started exporting Chinese-made equipment to
the Middle East and Africa.
, the move is part of a plan to offset a dip in China's economic
growth and is only temporary, with Caterpillar expecting China to
remain its fastest-growing market.
"The global economic situation, especially the situation in
China, has presented us a short-term opportunity to serve very
specific markets with some supplies over the last half of 2012,"
said Richard Lavin, who oversees Caterpillar's business in China.
"But that is not part of overall strategy for China."
It has been a difficult couple of weeks for Caterpillar, as it
gave up gains after releasing its second-quarter earnings.
Back in July
, Caterpillar reported net income of $1.699 billion from $1.015
billion in the previous year. On a per share basis, the company
earned $2.54 versus $1.52 in last year's corresponding quarter.
This came in well ahead of analyst consensus estimates of
Total sales and revenues for the quarter were up 22 percent to
$17.37 billion. This also came in ahead of Wall Street revenue
expectations of $17.11 billion. Excluding revenues generated by
acquisitions, the company's sales were up 12 percent.
Looking ahead, Caterpillar said that it expects a full-year
profit of $9.60, compared to a prior outlook of $9.50.
Around the same time though,
that Caterpillar is insisting on a six-year wage freeze despite
making record profits of $4.9 billion last year and projecting even
better results for 2012. In addition, the majority of the 780
production workers at the company's Joliet, IL headquarters are
subject to a pension freeze.
Therefore, it seems like an odd time for the company to turn its
attentions to China, which actually only comprises 3 percent of
total sales despite concerted and aggressive efforts to grow
"[This move] will have a positive effect on our industry," Lavin
said. "The Chinese government has shown itself to be pretty adept
over history at being able to pull the right levers at the right
point in time to adjust growth trajectories."
Time will tell if this proves to be a good tactic for
On Thursday, Caterpillar traded at about $88.50, up roughly 1.5
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