Leading market positions; Diversification by product, end markets, and geography; The industry's strongest dealer network; and A competitive cost structure. Cyclicality and intense competition; and Working- and fixed-capital intensiveness. The rating on Peoria, Ill.-based Caterpillar Inc. reflects the company's excellent competitive business position in the cyclical global construction equipment market, its solid cash flow protection, and Standard&Poor's Ratings Services' expectation that the company will generate acceptable earnings measures, even at the bottom of an economic cycle. Caterpillar is the world's largest producer of construction equipment and the world's leading diesel engine manufacturer. Caterpillar's business profile benefits from very good geographic diversity and reasonable end-market diversity. The company continues to strengthen its business position by introducing new products and
