The largest manufacturer of construction and mining equipment globally and a leading provider of engines and power generation systems. Diversity of products, end markets, and geography, supported by the industry's strongest dealer network. A competitive cost structure supports good, though variable, operating margins over a business cycle. Highly cyclical and competitive industry, with deep inventory correction cycles. Very substantial working and fixed capital needs. Uncertain near-term outlook due to depressed demand for mining equipment. Conservative financial policies, notwithstanding a tolerance for occasional large debt-funded acquisitions. Financial services operation accounts for most of consolidated debt. Manufacturing credit measures that we expect will exhibit volatility in correlation with the demand cycle. Strong liquidity from ample cash reserves and a variety of funding
