The largest manufacturer of construction and mining equipment globally, and a leading provider of engines and power generation systems Good product, end-market, and geographic diversity, supported by the industry's strongest dealer network A competitive cost structure that supports good, though variable, operating margins over the business cycle Operates in a highly cyclical and competitive industry with deep inventory correction cycles Very substantial working- and fixed-capital needs Uncertain near-term outlook because of depressed demand for equipment used in mining and energy end markets Conservative financial policies, notwithstanding a tolerance for occasional large debt-funded acquisitions The financial services operation accounts for most of the company's consolidated debt Manufacturing credit measures that we expect will exhibit volatility in correlation with the demand cycle
