Cat Probe of Newly Acquired Chinese Company

Published 01/18 2013 07:05PM

Updated 04/26 2013 11:44AM

Caterpillar announced Friday an internal investigation of its recently acquired company, ERA
Mining Machinery Limited, including its wholly owned subsidiary Zhengzhou Siwei Mechanical and
Electrical Manufacturing has uncovered deliberate, multi year, coordinated accounting misconduct
concealed at Siwei in China. Caterpillar says its probe determined several Siwei senior managers
engaged in deliberate misconduct beginning several years PRIOR to Caterpillar's acquisition of
Siwei. This deliberate misconduct at Siwei, the company says, will result in a non cash goodwill
impairment charge of about $580 million for the fourth quarter of 2012. Caterpillar says it
removed several senior managers and a new leadership team has been put in place.

Copyright 2017 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.