Businessweek

Caterpillar Inc. engages in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company provides its services through Caterpillar Financial Services Corporation (Cat Financial); Caterpillar Remanufacturing Services; and Progress Rail Services Corporation. Through a global network of independent dealers and direct sales of certain products, the company builds long-term relationships with customers worldwide. The company also operates as a U.S. exporter. Segments The company operates through four segments: Construction Industries, Resource Industries, Power Systems, and Financial Products. Construction Industries This segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The majority of machine sales in this segment are made in the heavy construction, general construction, mining and quarry, and aggregates markets. In 2012, the company began production of hydraulic excavators. Products: This segment’s product portfolio includes various machines and related parts, such as backhoe loaders; compact wheel loaders; small track-type tractors; small wheel loaders; track-type loaders; medium track-type tractors; skid steer loaders; mini excavators; select work tools; multi-terrain loaders; small, medium, and large track excavators; motor graders; medium wheel loaders; wheel excavators; and pipelayers. Competition: The company’s competitors include Komatsu Ltd.; Volvo Construction Equipment (part of the Volvo Group); CNH Global N.V.; Deere & Co.; Hitachi Construction Machinery Co.; J.C. Bamford Ltd.; Doosan Infracore Co., Ltd.; and Hyundai. Its competitors in China also include LiuGong Machinery Co., Ltd.; Longking Group; Sany Heavy Industry Co., Ltd.; XiaGong Machinery Co. Ltd.; XCMG Group; The Shandong Heavy Industry Group Co., Ltd. (Shantui Construction Machinery Co., Ltd.; Strong Construction Machinery Co., Ltd.; and Shandong JCM Construction Machinery Co., Ltd.); and Shandong Lingong Construction Machinery Co., Ltd. (part of Volvo Group). Resource Industries This segment is primarily responsible for supporting customers using machinery in mine and quarry applications. The company also serves forestry, paving, tunneling, industrial, and waste customers. This segment’s business is transformed by the acquisition of Bucyrus International, Inc. The company also owns ERA Mining Machinery Limited, including its wholly-owned subsidiary, Zhengzhou Siwei Mechanical & Electrical Manufacturing Co., Ltd, to pursue opportunities in the Chinese mid-tier market. Products: This segment’s product portfolio includes various machines and related parts, such as electric rope shovels; large electric drive mining trucks; industrial swing machines; draglines; tunnel boring equipment; select work tools; hydraulic shovels; large wheel loaders; forestry products; drills; off-highway trucks; paving products; highwall miners; articulated trucks; machinery components; underground mining equipment; wheel tractor scrapers; electronics and control systems; large track-type tractors; wheel dozers; large mining trucks; and compactors. Competition: The company’s competitors include Komatsu Ltd.; Joy Global Inc.; Hitachi Construction Machinery Co., Ltd.; Volvo Construction Equipment (part of Volvo Group); Atlas Copco; Wirtgen; and Deere & Co. Power Systems This segment is primarily responsible for supporting customers using reciprocating engines, turbines, and related parts across industries serving electric power, industrial, petroleum, and marine applications, as well as rail-related businesses. The company owns MWM Holding GmbH, a supplier of natural gas and alternative-fuel engines. Products: This segment’s portfolio includes reciprocating engine powered generator sets; integrated systems used in the electric power generation industry; reciprocating engines and integrated systems and solutions for the marine and petroleum industries; reciprocating engines supplied to the industrial industry and Caterpillar machinery; turbines and turbine-