Correct, and I understand that it was a result of CAT upper management being deceived. Clearly this isn't a risk with with FBR.My point was that even a company as large as CAT can make mistakes that cost a lot of money.
From this article we can see that the fraud was part of a much larger story of poor estimates and in hindsight what looks to me risky decisions with many layoffs from this Oct 2016 article.
https://www.wsj.com/articles/how-caterpillars-big-bet-backfired-1476639360
"Caterpillar now faces its fourth straight year of falling sales, the longest decline in its history. Its stock is up 29% this year—the best-performing in the Dow Jones Industrial Average—but trades 25% below its 2012 peak." That was in Oct 2016.
some positives for the HX project though is quote from the same article.
"Caterpillar has enough production capacity to benefit from the next upturn, industry analysts say."
If true (and it isn't an official CAT source) this means they likely have spare factory capacity at the moment to assign to building many HXs!!!
If CAT sign up as Strategic partner with FBR it may well good positive development depending on the $ FBR end up with.
But it doesn't mean that the HX project is de risked. Not by a long shot.
