Caterpillar Inc. (NYSE: CAT) is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
Founded in 1925 and headquartered in Deerfield, Illinois, the company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986.
Of the approximately 2,200 companies listed on the New York Stock Exchange, Caterpillar is among only 3% that have been listed for 90 consecutive years or more.
Caterpillar’s strategy for profitable growth has three pillars: operational excellence, expanded offerings and services. Operational excellence includes the core competencies of safety, quality, and a competitive and flexible cost structure. Expanded offerings refer to the company’s growing equipment portfolio, which meets a broad range of customer needs. Services include the many ways Caterpillar supports the customer after the purchase, as well as the company’s growing digital offerings.
Through partnerships with 28,000 suppliers and 165 dealers, the company serves 191 countries around the world. Roughly 58% of its sales and revenue originate outside of the United States.
Caterpillar operates in the following industries: construction, resources, energy and transportation, and financial products, among others.
With 1.8 million active construction machines globally, the company’s construction segment supports customers using machinery in infrastructure and building construction applications.
The resources industry segment is responsible for supporting customers using machinery in mining and quarrying applications. Through this segment, the company has autonomously moved 1.8 billion metric tonnes with zero lost-time injuries.
Caterpillar’s energy and transportation segment has built more than 20 million engines. The segment supports customers in oil and gas, power generation, marine, rail and industrial applications.
The company’s financial products segment offers a range of financing alternatives to customers and dealers for Caterpillar machinery and engines, solar gas turbines, marine vessels and other equipment.
Finally, Caterpillar’s ‘other’ segment includes business strategy, product management and development, and manufacturing of filters and fluids, undercarriages, tires and rims, engaging tools, and fluid transfers.
Caterpillar Inc. has a portfolio of 20 brands offering machines, engines, components, services and solutions to meet the unique needs of a variety of industries and customers around the world.
The Caterpillar brand represents the whole corporation and all employees. Cat(R) is the flagship brand of products and services, with customers served by the company’s independently owned and operated global Cat dealer network. Some of the company’s other brands include Progress Rail, Solar Turbines, Perkins and SEM.
The company promotes brand awareness through Caterpillar merchandise, including Cat(R) hats, boots, models, watches and phones. Consumers around the world, many of whom have never had an experience with the company’s core products, purchase approximately 35 million officially licensed Cat merchandise items every year.
Essential Operations Classification
During the global pandemic, Caterpillar’s operations were classified as essential activity for support of critical infrastructure. Customers use the company’s products to provide primary and stand-by power for hospitals, grocery stores and data centers; transport food and critical supplies in trucks, ships and locomotives; maintain clean water and sewer systems; mine commodities; and extract the fuels that are essential to satisfying global energy demand.
Financial Performance in 2019 and Future Outlook
Caterpillar delivered strong operational performance in 2019 despite a 2% decline in sales and revenues for the year. The company remained focused on maintaining control of structural costs, which helped it achieve an operating profit margin of 15.4%. By generating strong operating cash flow, Caterpillar was able to return $6.2 billion to shareholders, including $4.0 billion in share repurchases. Dividends were increased by 20% in 2019 (http://nnw.fm/tLyRE).
Caterpillar’s financial results for the remainder of 2020 will be impacted by continued global economic uncertainty due to the COVID-19 pandemic.
“We are well positioned for these challenging times because of the successful execution of our strategy,” Caterpillar Chairman and CEO Jim Umpleby said in a news release. “We are focused on employee safety and maintaining a competitive and flexible cost structure while continuing to invest in services and expanded offerings to better serve our customers. We will adjust production as conditions warrant and are prepared to respond quickly to any positive or negative changes in customer demand.”
D. James Umpleby III serves as the company’s Chairman & Chief Executive Officer. Umpleby leads a team of 102,000 employees in nearly 60 countries. He launched the company’s strategy for profitable growth and is overseeing its successful execution. He also serves on the board of the Chevron Corporation, the U.S.-India Strategic Partnership Forum, the U.S.-China Business Council and the Peterson Institute for International Economics.
Andrew Bonfield is the Chief Financial Officer of Caterpillar Inc., with responsibility for finance services, financial products and global information services. Bonfield joined Caterpillar in 2018 and brought more than three decades of financial expertise to the role, most recently serving as Group Chief Financial Officer and board member of National Grid plc, a British multinational electricity and gas utility company. Bonfield is a chartered accountant and holds a Bachelor of Commerce degree from the University of Natal in Durban, South Africa.
Julie A. Lagacy is the company’s Chief Information Officer & Vice President of Global Information Services (GIS). Lagacy leads a team responsible for Caterpillar’s global information technology (IT) systems, cybersecurity and IT transformation. Prior to being named vice president of GIS, Lagacy was a vice president with responsibility for the finance services division. Lagacy has also served as the Chief Financial Officer for Caterpillar Global Mining. She provided financial and strategic leadership during the integration of Bucyrus International, the largest acquisition in company history. She is also a Certified Management Accountant and holds a CERT Cybersecurity Oversight certificate from Carnegie Mellon University.
- Caterpillar, a leading global manufacturer of construction equipment, is among only 3% of companies on the New York Stock Exchange listed for 90 consecutive years or more.
- Through partnerships with 28,000 suppliers and 165 dealers, the company serves 191 countries around the world.
- The company operates in several critical industries, including construction, energy and transportation, financial products and more.
- Caterpillar has a portfolio of 20 brands offering machines, engines, components, services and solutions to meet the unique needs of a variety of industries and customers worldwide.
- During the global pandemic, the company’s operations were classified as essential activity for support of critical infrastructure.
- Caterpillar Chairman and CEO Jim Umpleby believes the company is well positioned for challenging economic times due to successful execution of its multi-pronged strategy focused on operational excellence and expanded offerings and services.