Caterpillar Update: Stock Dropping, Natural Gas Engine Deal in the Works
As Caterpillar continues preparing its Athens-Oconee plant, the construction equipment company is having a big impact on Wall Street.
The manufacturer's stock experienced a jump in February, which helped get the Dow Jones Industrial Average off to a strong start this year. Caterpillar also announced expectactions for record-breaking profits in 2012. However, the company's stock value has been declining since its surge four months ago. The stock continued its decline with a nearly 3 percent drop in value on Monday.
The Wall Street Journal reports that Caterpillar's decline is accountable for 28 percent of the more than 900 points the Dow has lost since February. Several analysts are examining Caterpillar's role in the drop, placing the company among other major decliners, such as JPMorgan Chase and General Electric.
However, Caterpillar is also making headlines for its recent partnership with the Canadian company Westport Innovations. The two companies plan to develop natural gas engines compatible with off-road equipment. Westport has said that commercial production will follow in five years.
What are your latest thoughts on the Caterpillar plant? Will its recent Dow decline affect the upcoming development in Oconee in Athens?