Caterpillar Falls After Chanos Says Margins Will Shrink
The shares dropped 2.2 percent to $86.26 at 12:47 p.m. in New York. Earlier they declined 2.6 percent, the most intraday since June 24.
Caterpillar “is tied to the wrong products at the wrong time in the cycle,” Chanos said today in a speech at the CNBC Institutional Investor Delivering Alpha Conference in New York. “Profit margins will revert with viciousness in the next 10 years.”
Chanos, the president and founder of Kynikos Associates Ltd., said he’s shorting the stock and the company is “being aggressive with their acquisitional accounting.”
Jim Dugan, a spokesman for Peoria, Illinois-based Caterpillar, declined to comment on Chanos’s statements.
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