CNI - Why Caterpillar Stock Is Up Today
2024-04-05 14:40:45 ET
An effort by Caterpillar (NYSE: CAT) to help the railroad industry stem its emissions got a boost Friday, and its stock price is going along for the ride. Shares of the heavy equipment manufacturer were up by 3% as of 2 p.m. ET after Canadian National Railway (NYSE: CNI) announced the purchase of its first hybrid mainline locomotive.
Caterpillar is best known for its massive construction and mining machines, but for nearly a decade, it has also owned Progress Rail Services. On Friday, Progress announced the sale of a hybrid diesel/battery electric locomotive to Canadian National.
The railroad intends to test the locomotive on its mainline British Columbia track to gauge whether the technology is a suitable replacement for at least a portion of its existing fleet. The industry is seeking to better understand how hybrids will hold up in harsh winter conditions, where batteries typically underperform, and determine their ability to tow heavy loads through mountainous terrain.
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Why Caterpillar Stock Is Up Today