Caterpillar Writes Off Most of China Deal After Fraud

ERA Mining Machinery fraud to result in a $580 million non-cash goodwill impairment charge

(Reuters) - Caterpillar Inc. uncovered "deliberate, multi-year, coordinated accounting misconduct" at a subsidiary of ERA Mining Machinery Ltd., a Chinese company it acquired last summer, leading it to write off most of the value of the deal and wiping out more than half its expected earnings for the fourth quarter of 2012.

Caterpillar indicated it would take a non-cash goodwill impairment charge of $580 million, or 87 cents per share, in the quarter.

(More on Caterpillar China Deal Write-off)

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