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 ratings on Peoria, Ill.-based construction equipment and diesel engine manufacturer Caterpillar Inc. reflect the company's strong competitive business position in the cyclical global construction equipment market, its solid cash flow generation, and Standard&Poor's Ratings Services' expectation that it will generate acceptable performance, even at the bottom of an economic cycle. Caterpillar is the world's largest producer of construction equipment and leading diesel engine manufacturer. Its business profile benefits from very good geographic diversity and reasonable end-market diversity. The company continues to strengthen its business position by introducing new
