Caterpillar Inc
I'm still watching this one with a view to adding to my ISA, but as it is drifting down just now due to the uncertainty in the Dow with US economic worries, I'm waiting. But I still see their growth coming from their depth of coverage in Asia a growing economic climate.
I still think that moving their Asian headquarters to Beijing is significant to where they see their future growth happening too. There seems to be a lot of activity in Japan, China and India for the company.
Some articles below, you may already have read, but pulled together it provides a picture.
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http://www.msnbc.msn.com/id/17185839/
Caterpillar (CAT), known for its yellow bulldozers, could be called a trailblazer in Asia. The Peoria, Ill.-based construction equipment maker has been moving much of the business overseas and investors are finally noticing. Shares of the compnay rose 2.5% to $67.82 on Feb. 15 on news that Caterpillar executives are discussing a plan to buy most of Shin Caterpillar Mitsubishi Ltd. [SCM].
The company's global expansion started way back in 1963, when Caterpillar and Mitsubishi Heavy Industries Ltd. formed Caterpillar Mitsubishi Ltd., one of the first joint ventures in Japan to include partial U.S. ownership. They eventually renamed their shared construction and mining equipment making business Shin Caterpillar Mitsubishi. Now Caterpillar and Mitsubishi have signed an agreement to complete a new plan under discussion, in which Caterpillar would own most of Shin Caterpillar Mitsubishi's shares while Mitsubishi has the rest, according to a statement released from Tokyo on Feb. 14.
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http://www.jconline.com/apps/pbcs.dll/article?AID=/20070313/NEWS09/70313011
Caterpillar Inc. plans to shift production of a large engine from its Lafayette plant to India next year. But company officials don't expect the move will come at the expense of employment at the Large Engine Center, which has a work force of approximately 1,600 employees.The Cat 3508 engine can provide power to electric drill rigs that are used in oilfields, and is increasingly being utilized in oil exploration in Southeast Asia."The 3508 production is moving from Lafayette to India in 2008," said Caterpillar chief corporate spokesman Rusty Dunn. "The demand for the 3508 engine continues to be greater than the manufacturing capacity in Lafayette today. A portion of that demand is currently being driven from increasing volumes of the 777 mining truck ... mainly used in Southeast Asia."With this move Lafayette is going to be able to alleviate some of its current capacity constraints. There will be no negative impact on our Lafayette work force. In fact, we're in the process of hiring additional people as they prepare for production of the new C175 (diesel engine)."
http://www.boston.com/news/world/asia/articles/2007/02/15/caterpillar_to_raise_stake_in_mitsubishi_heavy_jv/
Late last year, Caterpillar said it expected sales in China to quadruple as a percentage of its global sales by 2010 as the country rapidly builds more ports, energy projects and roads, and moved its Asia Pacific Operations headquarters to Beijing from Tokyo.
Caterpillar Asia Pacific Operations spokesman Jim Dugan said Japan represents a mature market for his company where it makes high-quality products, and China is a market with a large growth potential.
"It (the announcement) is really a sign of our recognition of the importance of the Japanese market to Caterpillar and our commitment to that market and our customers in Japan," he said.
Goldman Sachs analyst Kunio Sakaida wrote in a note to clients that he sees the news as positive for Mitsubishi's stock price as it would enable the company to concentrate its resources on diesel engines and turbo chargers, the outlook for which is good.
The venture, established in 1963, produces and sells hydraulic excavators, wheel loaders and bulldozers. It booked sales of 386 billion yen ($3.2 billion) in the business year ended March 2006.
