UPDATE 1-Hitachi Construction results outshine Caterpillar

(Reuters) - Hitachi Construction, a unit of Hitachi Ltd. and one
of the Japanese electronics conglomerate's few money-making
operations, also said a softer yen will likely help push up its
earnings. Its overseas sales accounted for 75 percent of overall
sales for the April-June quarter.




Hitachi Construction's upbeat results stood in contrast to an
earnings report last week from industry leader Caterpillar, whose
quarterly earnings fell more than expected due to lower truck
engine sales, weakness in North American construction markets and
higher production costs.


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Caterpillar sues UAW over retiree lawsuits

(Reuters) - "We think it's a breach of contract for the union to support a lawsuit that attacks the very terms the union proposed, negotiated and ratified during the bargaining," said Dan Day, Caterpillar's corporate human resources manager, in a statement.




A UAW spokesperson could not be immediately reached for comment.


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Japan's Nikkei 225 Average, Topix Falls; Toyota, JFE Holdings Lead Decline

(Bloomberg) -- Japanese shares dropped, paced by
companies that rely on the U.S. market, after Caterpillar Inc.
said its profit dropped on lower North American sales. Exporters
such as Honda Motor Co. and Komatsu Ltd. led losses.

Investors also refrained from betting heavily on stocks
before the upper house election, which will be held on July 29.
The Nikkei newspaper reported yesterday Japan's ruling coalition
may lose its majority in the election, citing its own poll.


Read more at Bloomberg Stocks News

Earnings misses, subprime woes punish Wall Street

(Reuters) - U.S. stocks tumbled on Friday, battered by disappointing results from such bellwethers as Caterpillar and Google, and more signals that fallout from the risky subprime mortgage market may spread.

The day's losses were big enough to drag the major indexes into negative territory for the week, snapping a three week streak of gains for the Dow, the S&P 500 and the Nasdaq.


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Wall St Week Ahead: Stock bull riders eye home sales, earnings

(Reuters) - A sharp drop in shares of equipment-maker Caterpillar Inc.
on Friday showed just how badly a stock can be hurt
when there is an earnings shortfall. The company reported an
earnings decline that was greater than expected. The stock
fell 4.4 percent and spoiled the Dow's day.




Despite Caterpillar's problems, multinational corporations
have been in a position to benefit from stronger economies
overseas.


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Komatsu, in Quest to Dominate Caterpillar, Mines China for Sales, Profit

(Bloomberg) -- Komatsu Ltd. couldn't dislodge its
bigger rival, Caterpillar Inc., in the U.S. The Tokyo-based
mining- and construction-equipment maker is faring better in
China.

Komatsu had $1.018 billion in sales from China last fiscal
year, more than Caterpillar's $1 billion, and said it became the
biggest producer there with a 22 percent market share. New Chief
Executive Officer Kunio Noji pledged earlier this year to take on
Peoria, Illinois-based Caterpillar throughout Asia.


Read more at Bloomberg Exclusive News

US STOCKS-Indexes rally on M&A frenzy, factory growth

(Reuters) - Caterpillar Inc. and United Technologies Corp.
led the Dow industrials higher after a surprising
rise in the Institute for Supply Management's factory index to
its highest level in more than a year.




Takeover activity showed few signs of abating despite
concerns about tightening credit. Canada's largest telephone
company, BCE Inc. , agreed to a US$32.6 billion
buyout. For details, see [ID:nN02315411].


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U.S. Stocks Advance After Manufacturing Growth Accelerates; Costco Surges

(Bloomberg) -- Faster-than-expected growth in
manufacturing ignited the U.S. stock market on July's first
trading day, extending the best second-quarter advance for the
Standard & Poor's 500 Index since 2003.

Costco Wholesale Corp. climbed to a record after Goldman,
Sachs & Co. advised buying the shares, helping push the Nasdaq
Composite Index to a six-year high. Caterpillar Inc., United
Technologies Corp. and Honeywell International Inc. carried the
Dow Jones Industrial Average to its first gain in three days.


Read more at Bloomberg Stocks News

Protestors disrupt Caterpillar shareholder meeting

(Reuters) - The disruption came after the Peoria, Illinois-based heavy construction and mining equipment manufacturer had reaffirmed its full-year sales and earnings outlook and voted on all shareholder proposals tabled for the meeting.




The protesters, who oppose Caterpillar's sale of tractors that are used by the Israeli Army to demolish the homes of Palestinian civilians, were quickly hustled out of the remote country club conference center 40 miles west of Chicago.


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