- Summary: Caterpillar's remanufacturing of older viable parts into existing, broken customer machinery is part of the company's effort to sustain growth if the current worldwide construction boom subsides. Caterpillar last year did about $1.5 billion in revenue from this service - about 4% of its overall revenue, but it's quickly expanding this business under the thesis that companies will continue to seek ways to extend the life of their existing machinery rather than buy new. Buyouts of remanufacturing firms are part of CAT's strategy.
- Comment on related stocks/ETFs: Chad Brand says CAT's aggressive growth plans are altogether achievable. Jim Cramer, a longtime CAT bull, says the company will benefit from the upcoming Highway Bill and shipment to BRIC countries. Now, what smaller remanufacturing companies are takeover bait under CAT's new division?
Caterpillar's Remanufacturing Division Growing Quickly
Jul 5 2006, 07:22 | about: CAT
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