Cat fuels hopes of big rebound despite slump; Some wonder whether equipment maker is headed for a fall.(Caterpillar Inc.)(Brief Article)(Statistical Data Included)

Crain's Chicago Business, September, 2001 by Arndorfer, James B.

Caterpillar Inc., the world's top maker of earth-moving equipment, has driven its bulldozer onto a ledge. While Deere & Co. and others hammered by the manufacturing recession warn Wall Street to expect the worst, Peoria-based Caterpillar is sticking with predictions of a modest dip in earnings this year-and hasn't dampened investor hopes for a sharp snapback in 2002.

Just last week, CEO Glen Barton told analysts that diversification has made Cat less vulnerable to slowdowns, as once-small businesses like financial services and power-generating engines have grown big enough to offset faltering core operations like general construction equipment and truck engines. ``Our diversification has been the story of the decade,'' Mr. Barton said, reaffirming...

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