Caterpillar (CAT) Rail Subsidiary Under Investigation for Bamboozling Customers
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Price: $1,057.01 +6.29%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
Revenue Growth %: +15.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
Revenue Growth %: +15.4%
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If you're a leading global manufacturer of industrial equipment and machinery, you probably want to ensure that disposal of your old products are in-line with government and environmental regulations.
(We're looking at you, Caterpillar (NYSE: CAT).)
According to the WSJ, citing a regulatory filing made by Caterpillar several weeks ago, federal investigators are looking into whether or not a subsidiary of Caterpillar has been dumping train parts into the ocean near Port of Long Beach, California. Worse, the move by Progress Rail might be part of a scheme by the unit to bill customers for unnecessary repairs.
Union Pacific (NYSE: UNP) is said to be one of the customers affected by the move.
Caterpillar said in the filing that it was cooperating with authorities, commenting,
It wasn't made clear how large the investigation was or how many companies would potentially be affected.
Shares of Caterpillar are indicated higher Friday.
(We're looking at you, Caterpillar (NYSE: CAT).)
According to the WSJ, citing a regulatory filing made by Caterpillar several weeks ago, federal investigators are looking into whether or not a subsidiary of Caterpillar has been dumping train parts into the ocean near Port of Long Beach, California. Worse, the move by Progress Rail might be part of a scheme by the unit to bill customers for unnecessary repairs.
Union Pacific (NYSE: UNP) is said to be one of the customers affected by the move.
Caterpillar said in the filing that it was cooperating with authorities, commenting,
We currently believe that this matter will not have a material adverse effect on the company's consolidated results of operation, financial position or liquidity.
It wasn't made clear how large the investigation was or how many companies would potentially be affected.
Shares of Caterpillar are indicated higher Friday.
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