SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 2, 1997
CATERPILLAR INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-768
(Commission File Number)
37-0602744
(IRS Employer I.D. No.)
100 NE Adams Street, Peoria, Illinois
(Address of principal executive offices)
61629
(Zip Code)
Registrant's telephone number, including area code: (309) 675-1000
Item 5. Other Events
Standard & Poor's has announced it has raised the senior long-term
debt rating of Caterpillar and Caterpillar Financial Services
Corporation to "A+" from "A."
Douglas R. Oberhelman, Caterpillar vice president and chief financial
officer, said: "We are very pleased to receive this rating upgrade
from Standard and Poor's in recognition of our improved operating and
balance sheet strength. Caterpillar's strategic growth initiatives are
providing both product and geographic diversification that should
provide greater stability through economic cycles. Our continuing
focus on these initiatives gives us the opportunity to live up
to the performance expectations of our new higher rating."
In a news release Standard & Poor's said: "The upgrades reflect the
firm's strengthened business and financial profiles, and improved
fundamentals for the construction equipment industry that should allow
the company to generate acceptable earnings measures at the bottom of
the economic cycle."
The rating agency also said Caterpillar "continues to strengthen
its business position by increasing the breadth of product offerings,
targeting niche markets where it has lower penetration. At the same
time, its cost competitiveness has improved."
Standard & Poor's said the company's ratings outlook is stable.
"A very strong competitive business position, good operational
efficiencies and conservative financial policies should result in
sufficient financial flexibility to maintain credit quality in the
next cyclical downturn."
Caterpillar ranks third in five-year average annual return to
stockholders among the 30 Dow Jones Industrial stocks. A $100
investment in Cat stock in 1991 was worth $367 at the end of 1996,
while the same investment in the S&P 500 was worth $202.
Certain information in this filing is forward looking and involves
risks and uncertainties that could significantly impact expected
results. A discussion of those risks and uncertainties is contained
in Form 8-K filed with the Securities and Exchange Commission on
April 15, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CATERPILLAR INC.
By: /s/ R. Rennie Atterbury III
R. Rennie Atterbury III
Vice President
Date: June 2, 1997
