According to Caterpillar (CAT) Vice President Thomas Bluth, CAT's sales in CHINA will double by 2010 from $2 Billion this year to $4 Billion.uk.reuters.com/article/ousiv/idUKPEK26979520080704
Quick Points from the link above:
* Caterpillar is spending $1 billion in emerging markets over the next three years. More than half of that was earmarked for China, whose economy has grown by 10% or more for the past five years
* CAT's Asia Pacific (AP) revenues rose 37% in the first quarter from a year earlier and are expected to be up at least 15-20% for the year as a whole
* According to Bluth, the rising cost in global markets of commodities such as iron ore and steel has posed a big challenge for Caterpillar, which raised prices by 5% for all its products on July 1, 2008...."We are in the process of working to mitigate the impact in terms of passing on the cost," Bluth said. "But with the amount of increases, you can only offset a portion."...He said Caterpillar would keep examining whether it needed to raise prices further.
* One of CAT's toughest tasks is simply keeping up with the pace of business in the world's fastest-growing major economy..."To me, the biggest challenge is there's so much going on," Bluth said. "We see the market continue to grow significantly in terms of even smaller-sized excavators."...this week CAT announced plans to build a new plant in the eastern city of Nanjing to make small hydraulic excavators
* Caterpillar currently employs nearly 7,000 people in China in 16 businesses
Data Courtesy: Reuters
Full Disclosure: I own shares of CAT.
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