Shiv Kapoor

Count on Caterpillar for the Long Term

Comment on Debt. In the post debt details are incorrect. I relied on a bad source of information. Correct Position is
q2 09
Equity 7,375.00
Long Term Debt 23,558.00
Short Term Debt 9,738.00
Cash and Cash Eq 25,589.00
Net Debt 7,707.00
Net Debt: Net Debt + Eq 51%

This is well over my comfort zone. In my view, at least $4.5 billion reduction in debt or increase in cash is required. Good progress has been made since the year end as the Net Debt: Net Debt + Eq has reduced from 60%. Improving operating cash flows from increased activity and cost control for second half, together with strong working capital & inventory management and reduced capex should bring leverage to acceptable levels in 2 quarters. During the 2009 outlook, the management state - "We expect strong cash flow for the year and to improve our balance sheet."