At a Glance
The Caterpillar name has strong résumé recognitions for future job applications
Good pay and excellent benefits
Location: Those unwilling to move to Peoria, IL-or overseas-will likely miss out on the best opportunities and challenges
Job security: While the firm has weathered the recession reasonably well, another downturn could jeopardize revenues, leading to layoffs.
Employees can fall through the cracks and find it difficult to move up at Caterpillar. However, the benefits of working for this industry leader greatly outweigh any drawbacks.
About Caterpillar Inc.
"The Caterpillar" was company founder Benjamin Holt's nickname for his new farm tractor with crawler tracks used in place of iron wheels. Growing from that 1904 invention, Caterpillar Inc. is the world's #1 manufacturer of construction and mining equipment, which includes excavators, loaders, and tractors as well as forestry, paving, and tunneling machinery. It also manufactures diesel engines, gas turbines, and diesel-electric locomotives. Subsidiary Caterpillar Financial Services offers financing products and services for dealers and customers, and its Progress Rail Services subsidiary provides remanufacturing and rail-related maintenance services. The US supplies about 40% of sales.
Caterpillar is organized into three main operating segments- Construction Industries, Energy & Transportation and Resource Industries.
Construction Industries (about 40% of net sales) caters to customers using machinery in infrastructure, forestry, and building construction applications.
Energy and Transportation (almost 35%) makes and sells reciprocating engines, turbines, diesel-electric locomotives, and related parts for power generation, industrial, oil and gas, and transportation applications.
Resource Industries (nearly 20%) makes and sells machinery for mining, quarry, waste, and material handling applications. It also develops and sells technology products for customers' fleet management systems and provides equipment management analytics and autonomous machine capabilities.
A fourth segment is Financial Products, which accounts for less than 5% of revenue in providing financing for Caterpillar customers and dealers.
Caterpillar has construction, mining, and power equipment manufacturing operations scattered across the US and around the world. It also operates technical centers in Mossville, IL., Wuxi, China, and Chennai, India. Demonstration centers are located in Tinaja Hills, Arizona; Edwards, Illinois; Chichibu, Japan and Malaga, Spain. Additionally, the company has marketing and operating locations, parts distribution centers, and remanufacturing facilities worldwide. The company is headquartered in Deerfield, Illinois.
Caterpillar's strong international presence generates about 60% of revenue, with around 20% of revenue from Europe, Africa & Middle East (EAME), more than 20% from the Asia/Pacific region, and about 10% from Latin America. The US supplies about 45% of Caterpillar's sales.
Sales and Marketing
Caterpillar machinery is distributed to customers in more than 190 countries through a worldwide network of about 120 dealers (45 are in the US), many of which provide sales, rental, service, and aftermarket support. Most are independently owned and operated, though Caterpillar owns and operates its own dealerships in Japan and covers up to 80% of the Japanese market.
Caterpillar serves the mining, construction, electric power generation, industrial, marine, and oil and gas industries.
For a five-year period starting in 2015, Caterpillar saw its sales and revenue fluctuates. Net income followed the same trend for that period.
Caterpillar's sales and revenues for 2019 were $53.8 billion, a 2% decrease from 2018 sales and revenues of $54.7 billion. The decrease was primarily due to lower sales volume. The sales volume decline was mostly due to changes in dealer inventories, partially offset by higher end-user demand.
The sales decreased translated to a $6.09 billion profit for Caterpillar in 2019 compared to a $6.14 billion profit the year before.
The company's coffers held about $8.3 billion in cash in 2019 compared to $7.9 billion in 2018. Operating activities generated $6.9 billion in 2019, while investing and financing activities used $1.9 billion and $4.5 billion, respectively.
Caterpillar is working to identify and prioritize business opportunities that offer the most potential for growth. Using a data-driven approach dubbed the "Operating & Executing (O&E) Model," the company is assessing its financial performance by product, region, and application, and is investing in areas producing lower-than-acceptable returns. As a result, Caterpillar is streamlining its operations and expanding its product offerings and services portfolio.
Services growth is a core focus of their strategy. The company have a bold goal to double their Machinery, Energy and Transportation (ME&T) services sales to $28 billion by 2026 from their 2016 baseline.
At Caterpillar, they define services as the value we provide to customers after the equipment purchase – everything from aftermarket parts to maintenance agreements to financing – with a goal of delivering a superior customer experience. The company invest time, talent and resources in service offerings because they drive value for their customers. Services can reduce total owning and operating costs for customers and deliver revenue for Caterpillar and their dealers throughout the cycles.
Mergers and Acquisitions
In 2019, Caterpillar's Progress Rail Services subsidiary agreed to purchase Cleveland Track Material (CTM) for about €35 million. CTM is part of Germany-based rail equipment provider Vossloh AG's North American operations. CTM is a leading manufacturer of special trackwork -- including rail turnouts and crossings, trackwork assemblies, and switch points -- for Class 1 and transit railroads. The deal should bolster Progress Rail's track services operations.
In 1904 in Stockton, California, combine maker Benjamin Holt modified the farming tractor by substituting a gas engine for steam and replacing iron wheels with crawler tracks. This improved the tractor's mobility over dirt.
The British adapted the "caterpillar" (Holt's nickname for the tractor) design to the armored tank in 1915. Following WWI, the US Army donated tanks to local governments for construction work. The caterpillar's efficiency spurred the development of earthmoving and construction equipment.
Holt merged with Best Tractor in 1925. The company, renamed Caterpillar, moved to Peoria, Illinois, in 1928 and went public in 1929. Cat expanded into foreign markets in the 1930s and phased out combine production to focus on construction and road-building equipment.
510 Lake Cook Rd Ste 100
Deerfield, IL 60015-5031
Phone: 1 (224) 551-4000
Employer Type: Publicly Owned
Stock Symbol: CAT
Stock Exchange: , NYSE
Chairman: David L. Calhoun
Group President and CFO: Bradley M. Halverson
CEO: D. James Umpleby
Employees (This Location): 1,176
Employees (All Locations): 102,300
North Little Rock, AR
Green Valley, AZ
San Diego, CA
Colorado Springs, CO
Miami Lakes, FL
Carrier Mills, IL
Des Plaines, IL
East Peoria, IL
East Saint Louis, IL
Granite City, IL
Mc Cook, IL
Norris City, IL
East Chicago, IN
Overland Park, KS
Taylor Mill, KY
New Orleans, LA
Maple Grove, MN
Saint Paul, MN
Kansas City, MO
New Bern, NC
Winston Salem, NC
Rochelle Park, NJ
Upper Saddle River, NJ
Santa Fe, NM
Canal Winchester, OH
Broken Arrow, OK
New Castle, PA
Johnson City, TN
South Pittsburg, TN
Deer Park, TX
Del Rio, TX
San Antonio, TX
Salt Lake City, UT
Saint Albans, VT
Green Bay, WI
South Milwaukee, WI
Oak Hill, WV
Rock Springs, WY
Campo Largo, Brazil
Rio De Janeiro, Brazil
Sao Paulo, Brazil
St. Albert, Canada
Panama City, Panama