CAT CEO Apologizes to Employees

Chief Executive Officer Jim Umpleby, said in a statement to employees that was seen by the newspaper Peoria Star Opens a New Window. , Said he was surprised that things had changed and that the management did not have enough information to provide a full understanding of the purpose of the authorities.

"This morning, many of my colleagues in Peoria surprised when federal authorities to execute a search warrant. I am sorry that we had to do this today," he said in a statement on Thursday.

Caterpillar said they believed the search was part of an investigation Internal Revenue Service related to the profit earned by the Swiss subsidiary parts, Caterpillar SARL, or CSARL.

Stocks were little changed on Friday morning suggested investors put aside the company's tax risk as old news, a day after the federal law searched three buildings.

the company's shares closed down 4.3 percent at $ 94.36 on Thursday, wiping out $ 2.47 billion market value.

Escalation of patent controversy with government tax Caterpillar after Trump administration's promise to reform corporate taxes to design a program that encourages companies to maintain and profit within the United States.

Caterpillar is currently contesting the need Internal Revenue Service to pay $ 2 billion in taxes and penalties the value assigned to a subsidiary between 2007 and 2012.

Morningstar analyst Keith Schoonmaker said Caterpillar's current exposure could rise to $ 3 billion, as the company has continued to file a tax return in the same way.

"We suspect the root of the matter is not" "news, but rather that it relates to the risk of already disclosed 2014-16 10-KS," the new Schoonmaker, who lowered his just value estimate on the stock to $ 64 from $ 67.

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