Caterpillar Inc - Company Profile

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Caterpillar Inc: Segment Analysis

Business Description

Caterpillar Inc (Caterpillar) carries out the design, manufacturing, and marketing of a wide range of machinery and engines. It manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also provides financial services through its subsidiaries. Caterpillar operates in North America, Asia-Pacific, Europe, Africa, the Middle East, the Commonwealth of Independent States (CIS) and Latin America.

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R&D Overview

The company's R&D unit focuses the development of new engines and improvement of existing engines, machines and components. Caterpillar focuses on maximizing the global value of a technology with its partners and provides customer solutions such as autonomous machines, additive manufacturing, data analytics and safety products. It invests substantially in R&D to develop digital solutions. In FY2022, the company spent US$1,814 million on R&D activities, which stood at 3.0% of its revenue, and grew 7.6% YoY. The company focuses on R&D in resource industry for the development of drivetrains, hydraulic systems, electronics and software for machines and engines. Caterpillar focuses on implementation of advanced analytics and big data in their own products to help customers manage and monitor their assets. The company continuously works on 3D printing to main manufacturing method for optimally running factories and use the technology to improve its service to customers.

Business Segments

Overview

Offers retail and wholesale financing, and insurance services for its products globally through Cat Financial. Key subsidiaries include Caterpillar Financial Services Corp, Caterpillar Insurance Co Ltd, Caterpillar Insurance Company, Caterpillar Life Insurance Company and Caterpillar Insurance Services Corp (CISC).

Performance

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Overview

Comprises component manufacturing activities which are used in assembling of products for business segments. Key products include filters and fluids, tires and rims, fluid transfer products, ground engaging tools and precision seals. Also, carries out distribution activities; and makes digital investments for new customer and dealer solutions. Owns manufacturing facilities in China, the US, Italy, Mexico, South Korea, and the UK.

Performance

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Overview

Offers loaders, track-type tractors, asphalt pavers, excavators, wheel and track feller bunchers, tractors, motor graders, and related parts. Also, offers harvesters, backhoe loaders, telehandlers, track-type loaders, skidders, forestry excavators and pipe layers, among others. Provides these products to the heavy construction, mining and quarry, forestry, general construction, rental and aggregates markets. Owns manufacturing facilities in the US, Brazil, China, France, Hungary, India, Indonesia, Italy, Japan, Mexico, the Netherlands, Poland, Thailand and the UK. Aims to develop customer-driven product innovations and offerings in developed economies that focus on customers.

Performance

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Overview

Provides reciprocating engines, generator sets, gas turbines and turbine-related services, and marine propulsion systems, diesel-electric locomotives, and other rail-related products and services. Serves oil and gas, rail, marine, power generation and industrial sectors. Owns manufacturing facilities in Australia, the US, Brazil, China, Czech Republic, Germany, Mexico, India, Italy, Singapore, Sweden and the UK. Aims to expand its products to increase power density improve efficiencies and lower customer operating costs; and use Lean technology for operational excellence and cost structure.

Performance

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Overview

Manufactures high-productivity equipment for surface and underground mining operations, and waste and material handling applications. Key products include large track-type tractors, high wall miners, track and rotary drills, large mining trucks, draglines, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, landfill and soil compactors, continuous miners, select work tools, machinery components, and electronics and control systems. Owns manufacturing facilities in China, the US, Germany, India, Indonesia, Mexico, Italy, Russia, Thailand and the UK. Focuses to invest in R&D to provide mining and quarry customers the lowest total cost of ownership with highest quality, and productive products.

Performance

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Geographical Segments

Target Markets

Australia, India, New Zealand, China, Japan and Southeast Asia.

Performance

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Target Markets

Europe, Africa, the Middle East and the Commonwealth of Independent States (CIS).

Performance

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Target Markets

Central and South American countries, and Mexico.

Performance

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Target Markets

The US and Canada.

Performance

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