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Caterpillar Inc. also known as "CAT", is an American corporation which designs, manufactures, markets and sells machinery and engines and sellsfinancial products and insurance to customers via a worldwide dealer network. Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines With more than US$70 billion in assets, Caterpillar was ranked number one in its industry and number 44 overall in the 2009 Fortune 500. Caterpillar stock is a component of the Dow Jones Industrial Average. Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company and the C. L. Best Tractor Company, creating a new entity, the California based Caterpillar Tractor Company. In 1986, the company reorganized itself as a Delaware corporation under the current name, Caterpillar Inc. Caterpillar's headquarters are located in Peoria, Illinois, United States. Caterpillar machinery is recognizable by its trademark "Caterpillar Yellow" livery and the "CAT".

The steam tractors of the 1890s and early 1900s were extremely heavy, sometimes weighing 1,000 pounds (450 kg) per horsepower, and often sank into the rich, soft earth of the San Joaquin Valley Delta farmland surroundingStockton, California. Benjamin Holt attempted to fix the problem by increasing the size and width of the wheels up to 7.5 feet (2.3 m) tall and 6 feet (1.8 m) wide, producing a tractor 46 feet (14 m) wide. But this also made the tractors increasingly complex, expensive and difficult to maintain. Another solution considered was to lay a temporary plank road ahead of the steam tractor, but this was time-consuming, expensive, and interfered with earthmoving. Holt thought of wrapping the planks around the wheels. He replaced the wheels on a 40 horsepower (30 kW) Holt steamer, No. 77, with a set of wooden tracks bolted to chains. On Thanksgiving Day, November 24, 1904, he successfully tested the updated machine plowing the soggy delta landof Roberts Island. Company photographer Charles Clements was reported to have observed that the tractor crawled like a caterpillar, and Holt seized on the metaphor. "Caterpillar it is. That's the name for it!" Some sources, though, attribute this name to British soldiers in July 1907. Two years later Holt sold his first steam-powered tractor crawlers for US$5,500, about US$128,000 today. Each side featured a track frame measured 30 inches (760 mm) high by 42 inches (1,100 mm) wide and were 9 feet (2.7 m) long. The tracks were 3 inches (76 mm) by 4 inches (100 mm) redwood slats.

Expansion in developing markets

Caterpillar built its first Russian facility in the town of Tosno, located near St. Petersburg, Russia. It was completed in 16 months and occupied in November 1999. It had the first electrical substation built in the Leningrad Oblast since the Communist government was dissolved on December 26, 1991. The facility was built under harsh winter conditions, where the temperature was below 13F (25C). The facility construction was managed by the Lemminkinen Group located in Helsinki, Finland. The $125M Caterpillar Suzhou, People's Republic of China facility, manufactures medium wheel loaders and motorgraders, primarily for the Asian market. The first machine is scheduled for production in March 2009. URS Ausino, in San Francisco, California, manages facility construction. Caterpillar has manufactured in Brazil since 1960. In 2010 the company announced plans to further expand production of backhoe and small wheel loaders with a new factory.

Caterpillar occasionally divests assets that do not align with its core competencies. Sortable table Asset Divested Location Date Purchaser Products Notes Caterpillar's only aerospace asset, not a core competency, sold to longtime partner

Turbomach Division of Solar Turbines Incorporated

San Diego, California, United States


Sunstrand Auxiliary Corporation power units

Kato Engineering

Mankato, Minnesota, 1999 United

Emerson Electric Company

Large electrical generators

Asset swap. Caterpillar acquired F.G.

Sortable table Asset Divested Location States Date Purchaser Products Notes Wilson from Emerson as part of transaction. Although founded as an Design, agricultural assembly and equipment AGCO marketing manufacturer, Corporation ofChallenger Caterpillar track tractors exited the business with this sale. Caterpillar Investment Management T. Rowe Ltd. decided to Price Group Mutual funds exit the Inc. investment management business.

Agricultural equipment assets

DeKalb, Illinois, United States


Preferred Group of Mutual Funds

not applicable


Pioneer Machinery

West Columbia, South Carolina, United States


Consortium Distributor of of six forestry Caterpillar equipment dealers

Products by Company
1. Machinery:Caterpillar has a list of some 400 products for purchase through its dealer network. Caterpillar's line of machines range from tracked tractors to hydraulic excavators, backhoe loaders, motor graders, off-highway trucks, wheel loaders, agricultural tractors and locomotives. Caterpillar machinery is used in the construction, road-building, mining, forestry, energy, transportation and material-handling industries.

2. Engines:A portion of CAT's business is in the manufacturing of diesel and natural gas engines and gas turbines which, in addition to their use in the company's own vehicles, are used as the prime movers in locomotives, semi trucks, marine vessels and ships, as well as providing the power source for peak-load power plants and emergency generators. In 2004, the company introduced with ACERT diesel engines that exceed federal guidelines for emission standards. In 2007, Caterpillar released a second generation of ACERT to meet even stricter standards. In June 2008, Caterpillar announced it would be exiting the on-highway diesel engine market in the U.S. before updated 2010 U.S. Environmental Protection Agency (EPA) emission standards took effect, as costly changes to the engines (which only constituted a small percentage of CAT's total engine sales) would be likely. In October 2010, Caterpillar announced it would buy German enginemanufacturer MWM GmbH from 3i for $810 million.

3.Agriculture products:Caterpillar introduced the Challenger range of agricultural tractors as the result of several development programs over a long period of time. The program started in the 1970s and involved both D6-based units and Grader power units. A parallel program was also developing wheeled high hp tractors based on using the articulated loading shovel chassis was latter merged with the crawler team. The result was the Challenger Tractor and the "Mobi-Trac" system.

The Challenger has been marketed in Europe as Claas machines since 1997, with Caterpillar marketing the Claas built Lexion combine range in the USA. Claas and Caterpillar formed a joint venture, Claas Omaha, to build combine harvesters in Omaha, Nebraska, USA under the CAT brand. In 2002, Cat sold its stake to Claas, and licensed the use of CAT and the CAT yellow livery to Claas. They are marketed as Lexion combines now. Also in 2002, Caterpillar sold the Challenger tracked tractor business to AGCO and licensed the use of the Challenger and CAT names and livery to them. This ended Cat's venture into agriculture

1. Manufacturing:Caterpillar products and components are manufactured in 110 facilities worldwide. 51 plants are located in the United States and 59 overseas plants are located in Australia, Belgium, Brazil, Canada, China, England, France, Germany, Hungary, India, Indonesia, Italy, Japan, Mexico, the Netherlands, Northern Ireland, Poland, Russia, Singapore, South Africa and Sweden. Caterpillar's historical manufacturing home is in Peoria, Illinois, which is also the location of Caterpillar's world headquarters and core research and development activities. Although Caterpillar has contracted much of its local parts production and warehousing to third parties, Caterpillar still has four major plants in the Peoria area: the Mapleton Foundry, where diesel engine blocks and other large parts are cast; the East Peoria factory, which has assembled Caterpillar tractors for over 70 years; the Mossville engine plant, built after World War II; and the Morton parts facility.

2.Distribution:Caterpillar products are distributed to end-users in nearly 200 countries through Caterpillar's worldwide network of 220 dealers. Caterpillar's dealers are independently owned and operated businesses with exclusive geographical territories. Dealers provide sales, maintenance and repair services, rental equipment, and parts distribution. Finning, a dealer based in Alberta, Canada, is Caterpillar's largest global distributor.

Most dealers use a management system called DBS for their day to day operations. As of the first quarter of 2006, 66% of Caterpillars sales are made by one of the 63 dealers in the United States, with the remaining 34% sold by one of Caterpillar's 157 overseas dealers.

3.Management:Caterpillar has a corporate governance structure where the Chairman of the board also acts as Chief Executive Officer (CEO). The Board of Directors is fully independent and is made up of non-employee directors selected from outside the company. Several group presidents report to the CEO, and multiple vice presidents report to each group president. The board has four committees: Audit, Compensation, Governance, and Public Policy. The behavior of all employees is governed by a Code of Worldwide Business Conduct, first published in 1974 and last amended in 2005, which sets the corporate standard for honesty and ethical behavior. Management employees are retested on this code annually.

Current board of directors

Douglas R. Oberhelman (Chairman & CEO) Charles Powell Daniel M. Dickinson David R. Goode Dennis A. Muilenburg Edward B. Rust, Jr.

Eugene V. Fife Gail D. Fosler John T. Dillon Joshua I. Smith

"Cat is Purring, But They're Hissing on the Floor." Business Week, 16 May, 1994: 33. "Caught in Cat's Claws." Kelly, Kevin. Business Week, 04 Dec., 1995: 38. Caterpillar Inc. Notable Corporate Chronologies. Online Edition. Thomson Gale, 2005. Reproduced in Business and Company Resource Center. Farmington Hills, Mich.:Gale Group. 2005. Mining e-commerce goes mainstream Russel Carter, Western Editor, Primedia Business Magazines and Media, Inc., 2003. EM&J, Pgs 24-28, January 2003. 0D D8CF%2D252A%2D4637%2DACBB%2D61B20A5F284D%40sessionmgr5+dbs+bu h+ A3D0&_us=frn+1+hs+True+cst+0%3B1%3B3+or+Date+ss+SO+sm+KS+sl+0+mh+1 +r i+KAAACBXC00082702+C858&_uso=hd+False+tg%5B0+%2D+st%5B0+%2DCater pi llar++e%2Dcommerce+db%5B0+%2Dbuh+ex%5B0+%2Dproximity+op%5B0+%2D+ 4 45F&fi=buh_9071404_AN&lpdf=true&pdfs=1.0MB&bk=C&tn=5&tp=CP&es=cs%5Fcl ient%2Easp%3FT%3DP%26P%3DAN%26K%3D9071404%26rn%3D1%26db%3Db uh %26is%3D00958948%26sc%3DR%26S%3DR%26D%3Dbuh%26title%3DE%2526 MJ %253A%2BEngineering%2B%2526%2BMining%2BJournal%26year%3D2003%26b k% 3DC&fn=1&rn=1& Research and Insights by Industry eCommerce Innovation, 2005. uip ment/eCommerceInnovation.htm Various company documents via Internet sites including: