Business Report of Caterpillar Inc. Essay -- CAT Stock Market Finances

Business Report of bozo Inc. Data and teaching relative to Caterpillar, Inc. was collected via the internet. Current information was crucial to keeping the study timely and accurate. The five members designate to the group wrote one section per person. look into was conducted on a separate nates, and construction of the report was on a group level. Each team member is responsible for their own assigned athletic fields and nothing more.Financial Analysis Caterpillar is a publicly traded alliance listed on the New York Stock Exchange. Its SIC codes indicate their primary(prenominal) areas of enterprise are construction machinery, internal combustion engines, and short terminal figure business credit and insurance. But this dynamic company has many qualities underneath the surface of its image. These qualities are neither good nor bad. These are Caterpillars financial components.SalesCaterpillar, Inc. primary income is made from sales of machinery and engines . The se sales are made to clients in construction, agriculture, and manufacturing industries. Caterpillar divides their sales based on geographical location where the For example, third quarter sales were split between northmost America, EAME (Europe, Africa, and the Middle East), Latin America, and Asia. North America on average takes up 54% of total sales each quarter (see figure 1.) lend sales revenue for the third quarter 2000 amounted to $4.78 billion, one percent higher(prenominal) than the previous year third quarter. Sales volume increased by 2 percent and financial products increased by 12 percent. Caterpillar bases their sales upon two different tiers, although they sell a wide divagate of different products. The first breakdown consists of what they deem as machinery. The second area of sales consists of engines. Operating profit comparisons for the third quarters of 1999 and 2000 can be seen in table 1. Caterpillar has blamed third quarter deficiencies in revenue on the weak Eurodollar. Since 27 percent of their total sales are made in the European region, their claim may be true. As long as Caterpillar depends on foreign markets for sales, they give face problems with fluctuations in foreign currency.Receivables Caterpillar owns and operates a financing federation to handle its incredibly large receivable account. Receivables make up 30 percent of total assets and short-term receivab... ...on have major intellectual and financial posting, as surface as good reason to come to an agreement. However, the knowledge, skills and trueness needed to survive today in international business must(prenominal) be found on the plant floor as well as in the office. Noting the need for cooperation, the union local president asked What the perdition are they going to do when they get that work force back in on that point? Whos going to cooperate? That quote is the basis for this weakness of Caterpillar, Inc. What is going to happen at the end o f this contract when another(prenominal) one needs to be made? Are the employees of caterpillar so far bitter about the strike? Are the supervisors and directors at Caterpillar becalm bitter? Only time will tell. Fites is no longer the electric chair and CEO of Caterpillar, so some problems with him may be solved. But there is no doubt that some bitterness is still present in both the floor and the towers of Caterpillar, Inc. For these reasons, Caterpillar may not be a good purchase of stock. They may be doing quite well now, simply what if you invest money in them, only to see your money maybe be dwindled away by another bitter strike, or individualistic sales were contrived.