CHICAGO, April 18, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Caterpillar Inc.(NYSE: CAT), Joy Global Inc.(NYSE: JOY), CNH Global NV(NYSE: CNH), Komatsu Ltd.(OTC: KMTUY) and Volvo AB(OTC: VOLVY).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday's Analyst Blog:
CAT Sells Off Another Bucyrus Biz
Caterpillar Inc.(NYSE: CAT) is selling the distribution and support business formerly operated by Bucyrus International in Peru to Ferreyros S.A.A. for $75 million.
Ferreyros, the largest distributor of capital goods and associated services in Peru, has been a Caterpillar dealer since 1942. It operates in more than 60 locations across the country through a network of branches and offices and constant on-site support.
The distribution business was included in Caterpillar's purchase of Bucyrus Inc., a South Milwaukee-based manufacturer of surface and underground mining equipment, in July 2011. The $8.8 billion buyout was the biggest deal ever in Caterpillar's history. It capitalized on the rising demand for coal and minerals triggered by growth in emerging nations.
Last week, Caterpillar announced the sale of the distribution and support unit, formerly operated by Bucyrus International Inc. in Western Australia, Australian Capital Territory and New South Wales to WesTrac Pty Limited of South Guildford, Western Australia, for $400 million.
Again, in January this year, Caterpillar sold the distribution and support unit formerly operated by Bucyrus. in South America, Western Canada and the United Kingdom, to Finning International Inc. of Vancouver, Canada, for $465 million. In last December, Caterpillar sold a part of the Bucyrus distribution business to the Industrial Division of Sime Darby Berhad for $360 million.
Caterpillar is also in discussion with WesTrac regarding the former Bucyrus distribution and support businesses in the WesTrac dealership territories in North Eastern China. Caterpillar is systematically divesting the Bucyrus distribution businesses, preferably to its dealers having mining activities in their territories. Caterpillar, however, will operate the Bucyrus distribution business until the transitions have occurred in any given territory.
The Caterpillar-Bucyrus combined portfolio broadens Caterpillar's mining equipment product line, resulting in the most expansive product offering in the mining equipment industry. Furthermore, Caterpillar can leverage Bucyrus' strong presence in the emerging markets, its successful aftermarket parts business and support services for its equipment.
The Bucyrus acquisition positions Caterpillar as the leading global mining original equipment manufacturer. The combined product portfolio dwarfsJoy Global Inc.(NYSE: JOY), the only other manufacturer of surface and underground mining equipment in the US.
Caterpillar's backlog is at a record level, which holds promise for the year ahead. We believe Caterpillar's expansion plans of opening new facilities and furthering existing operations, particularly in the emerging markets, will boost its long-term potential. Add to it, the company's top line will continue to grow on the back of increasing demand for construction and mining equipment in the long term.
However, we have recently downgraded our recommendation onCaterpillar from Outperform to Neutral due to the recent loss of momentum in sales growth, margin headwinds, negative impact of the European debt crisis and a slowing Chinese economy. The quantitative Zacks #1 Rank (short-term Strong Buy rating) for the company indicates upward pressure on the shares over the near term.
Peoria, Illinois-based Caterpillar Inc. is the manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company is one of the few leading U.S. companies in an industry that competes globally from a principally domestic manufacturing base. Caterpillar operates two divisions - M&PS and Financial Products. Caterpillar competes with the likes ofCNH Global NV(NYSE: CNH),Komatsu Ltd.(OTC: KMTUY) and Volvo AB(OTC: VOLVY).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
