Caterpillar Inc. Chairman and Chief Executive Doug Oberhelman on Monday blamed a $580 million write-down in the value of a Chinese company acquired last year on accounting “misconduct” by several former senior managers there who “fabricated documentation to cover their tracks.”
The write-down and lower machinery sales world-wide led to a 55% drop in Caterpillar’s profit for the fourth quarter, Caterpillar said. It added that profit is likely to be “significantly lower” than a year earlier in the current quarter as dealers in the company’s construction and mining equipment continue shrinking inventories in response to weaker demand.
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Bob Tita and James R. Hagerty, Wall Street Journal via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/29wcEa7On24/
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