1. Description of Company and Industry
Founded and headquartered in Peoria, Illinois, Caterpillar, Inc. is one of the world’s leading manufacturers of construction & mining equipment, diesel & natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates in five segments. The construction segment provides machinery, such as backhoe, loaders, small track-type tractors, and mini excavators for use in infrastructure and building construction projects. The resource segment provides business strategy, product design, management, development, manufacturing, and sales efforts for customers using machinery in mining and excavating applications. The power systems segment supports customers who use reciprocating engines and turbines across multiple industries by serving electric power, industrial, petroleum, marine applications and rail-related businesses. The financial products segment provides customers and dealers with financing services related to the company’s products and the remaining segment remanufactures engines and components for other companies and provides support for Caterpillar’s products.1
In 2014, Caterpillar’s net operating revenue was $55.2 billion- the top three performers by category were the energy and transportation segment ($5.6 billion), construction segment ($4.5 billion), and resource segment ($2.2 billion). The company has 125 thousand employees worldwide and its market capitalization is $50.6 billion.2 Caterpillar’s top five competitors by revenue are Deer &Co., Illinois Tool Works, Inc., Terex Corp, Oshkosh Corp, and Manitowoc Co. Inc. In order to ensure that Caterpillar remains geographically close to its customers, the company sells its products and services in more than 180 countries. Globally 75% of Caterpillar’s sales are generated form outside of the U.S while its manufacturing, marketing, logistics, services, R&D, and dealer facilities are located in more than 500 locations. The company collaborates...
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