Article: Caterpillar pays $40 million engine fine

Caterpillar Inc., the nation's largest maker of heavy-duty diesel engines, has paid $40 million in penalties for selling engines exceeding federal emission standards that went into effect last October, the company said in a filing with the Securities and Exchange Commission.

The penalties were for sales of Caterpillar's medium-duty diesel "bridge" engine. Caterpillar also said it expected it would pay additional penalties - as yet undetermined - for selling 22,000 heavyduty truck engines in the first quarter of 2003.

Standard & Poor's analyst James Sanders said the company recorded sales of $20.1 billion in 2002. "The penalty they paid doesn't raise any eyebrows," said Sanders. ...

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