The Caterpillar Story

1. Late 1800s
Introduction

The Caterpillar story begins on the Western edge of the United States in the late 1800s. Land was
plentiful, but the means to work it was costly, requiring throngs of men, horses and mules.

Pioneers Benjamin Holt and Daniel Best were looking for ways to do farm work faster and more
productively than by hand. Their first efforts resulted in the perfection of the horse-drawn combined
harvester. These inventive individuals helped create the Caterpillar company you see today.

Let’s begin in the late 19th century, a few decades before the formation of Caterpillar Tractor Co.

Holt Brothers Formed Stockton Wheel Co.

In 1883, brothers Charles and Benjamin Holt established the Stockton Wheel Company in Stockton,
California, to sell wagon wheels and other blacksmithing supplies. Stockton’s arid climate was perfect
for seasoning wood, and the city's location on the edge of a vast, fertile delta made it a promising
center for manufacturing and commerce. Benjamin was responsible for production and took on the
role of “inventor” while Charles handled the business details.

Best Invented Portable Grain Cleaners

Another enterprising individual was Daniel Best. In 1859, the 21-year-old left his family's Iowa farm
to seek gold in the West.

Daniel tried mining and lumbering, but success eluded him. Then, while working on his brother's
California ranch, he noticed that farmers had to transport their grain long distances and pay hefty fees
to prepare it for market. He decided to invent a way to clean grain in the field, with a machine most
farmers could afford to own.

The first Best portable grain cleaners, patented in 1871, were a notable success. Daniel began to
manufacture them in Oregon and later established a manufacturing branch in Oakland, California.

Best Built His First Combined Harvester

In 1882, Daniel Best helped a friend build a combined harvester. Although combined harvesters had
been around since the 1850s, he took his experience and ideas for improvements and began working
on his own combined harvester, selling his first one in 1885. Business was so good that he bought a
factory in nearby San Leandro. The new company’s name was The Daniel Best Agricultural Works,
which manufactured combined harvesters, grain cleaners and separators.
Daniel set a high standard for customer service. All machines were thoroughly tested before they were
sent to the customer. Daniel even wrote personally to customers to inquire about their satisfaction
with their purchase. Repairs were made promptly– many times by Daniel himself.

Holt Produced First Link Belt Harvester

Meanwhile, the Holts decided to add agricultural machines to their wagon wheel business. In 1886,
Benjamin Holt introduced his first combined harvester, driven by linked belting and sprockets instead
of gears. This was a significant improvement over the geared designs made by other manufacturers.
The link belts made the machines run more smoothly and quietly – virtually eliminating the problem
of “runaway” horses scared by breaking gears – and also reduced machine repair costs.

A few years later, Benjamin patented the first successful side hill combine, which opened up even
more land for farming. By 1900, sales of Holt combines were greater than those of all competing
companies.

Tractors Replaced Animal Power

As the 19th century drew to a close, animal power was still supreme on the farm. But horses, mules
and oxen had clear limitations as power sources. They had to be fed, housed and cared for throughout
the year, not just when they were working. In the field, heat took a heavy toll as animals toiled in the
sun.

In a process that spanned decades, mobile "steam traction engine" tractors began to replace animal
power on big farms.

Best and Holt Entered Tractor Market

In 1889, Daniel Best introduced his first steam traction engine tractor. Almost immediately, he
decided to pair his machine with a combined harvester.

A year later, Benjamin Holt followed with his first steam traction engine tractor. At first, most of
them were used for farming. But freighting quickly became a major market for steam traction engine
tractors – especially for transporting lumber, ores and supplies.

Quality and customer service were top priorities for Benjamin Holt. He often visited customers to
monitor how his machines were performing, which helped him find design flaws and develop close
relationships with his customers.

Holt and Best Exported Steamers

Export markets proved lucrative for both Holt and Best steamers. By the turn of the century, Holt
steam traction engine tractors had found their way to Australia, Kenya, South Africa, Mexico and
Europe.
One of the first Best steam traction engine tractors went to the Sandwich Islands, known today as
Hawaii. Before long, Best steamers began working in Siberia and elsewhere in Russia.

Holt and Best Incorporated their Respective Companies

In 1892, Benjamin and Charles Holt reorganized the Stockton Wheel Company into two separate
organizations – Holt Bros. and The Holt Manufacturing Company. The Holt Manufacturing Company
was headquartered in Stockton with Benjamin as its president and Charles as its vice president. The
Holt Manufacturing Company continued to manufacture combined harvesters and steam traction
engines.

The Daniel Best Agricultural Works had been growing since 1886. On January 23, 1893, the Best
Manufacturing Company was incorporated. The name change reflected Daniel’s widening product
line, which was no longer focused solely on agriculture.

Questions

1. In what time period did Best and Holt introduce their first steam traction engine tractors?

1889 e 1890

2. During the late 1800s, which of the following apply to both Daniel Best and Benjamin Holt?
Introduced their own versions of a steam traction engine tractor
Invented a tractor with tracks instead of wheels.

3. In what industry did Daniel Best first apply his steam traction engine tractor?
.Agriculture

4. What was the benefit of the first Holt Combined Harvester over previous designs?
.Cost less to repair
.Link belts ran more quietly and smoothly than gears

5. What was the first product Daniel Best invented?

Portable grain cleaner

2. Early 1900s
Holt Replaced Wheels with Tracks

Despite high customer demand, Benjamin Holt was not satisfied with the performance of his
company’s steam traction engine tractors. Regions in California were difficult to prepare for crops,
and horses and steam traction engine tractors would get stuck in the soggy peat soil.

Some steam traction engine tractors were equipped with large rear extension wheels. These extension
wheels added to the weight of the heavy steam engine and made it difficult to steer and turn. When
one of these machines got stuck, it would take days or even weeks to free it.
Benjamin Holt developed the idea of replacing the large rear wheels with tracks, in order to increase
the steam traction engine's area of contact with the ground and distribute the machine’s weight over a
wider area.

The First Holt Track-Type Tractor

Benjamin Holt instructed his engineers to remove the rear wheels on the Holt Junior Steam Traction
Engine #77 and replace them with a special set of tracks he had designed. On November 24, 1904,
Benjamin and his engineers field tested the first track-type tractor.

The #77 tractor is now recognized as the prototype of the world’s first commercially successful track-
type tractor.

Caterpillar Name Was Born

In 1905, this steam-powered track-type tractor prototype was put through additional tests. During one
of the test runs, Benjamin Holt and his nephew, Pliny Holt, took the company photographer out to the
field to take photos of the machine. As this tracked machine “crawled” over the ground, the
photographer commented on how it looked like a caterpillar.

Over the next few years, the Holts continued to test different versions of their track-type tractor
concept and also tried out several different nicknames for their new machine.

Holt Produced Gasoline-Powered Tractors

As steam crawlers entered the marketplace, Holt began experimenting with a new power source.
Gasoline automobiles were appearing in increasing numbers, and the advantages of gasoline engines
were obvious: they were lighter, more reliable and more portable.

Holt’s gasoline-powered track-type tractors were tested extensively before being released for sale. In
1908, engineers of the 230-mile-long Los Angeles Aqueduct became interested in using Holt's track-
type tractor to transport supplies to work sites across the Mojave Desert. A demonstration surpassed
the engineers’ expectations, and they decided to purchase a Holt 40-hp gasoline-powered tractor. The
aqueduct engineers later purchased an additional 26 gasoline crawlers, ensuring the commercial
success of the new product.

"Caterpillar" Became Trademark

Coinciding with the sale of the first gasoline-powered track-type tractor, the Holts officially named
their new product a “Caterpillar.” The Caterpillar name was soon applied to many products in the Holt
line.

In 1910, the Holts registered “Caterpillar” as a trademark with the U.S. Patent Office and it has
remained the sole property of the Caterpillar organization to this day.
Daniel Best Sold His Company to the Holts

When Daniel Best retired in 1908, he felt that his son, C. L. Best, was not experienced enough to
assume full responsibility for the Best Manufacturing Company. Instead, he sold the Best
Manufacturing Company to his long-time rival, The Holt Manufacturing Company, with the
stipulation that his son, C. L. Best, remain on as the superintendent and president of the Best
Manufacturing Company.

Holts Searched for New Manufacturing Site

With the growing success of the gasoline track-type tractor, along with plans to expand its application
outside the West, the Holts began searching for a new manufacturing site. Pliny Holt led the search.

At first he settled on Minneapolis, Minnesota. He hired a small staff, developed plans and ordered
parts from Stockton. Pliny Holt then made arrangements for Holt tractors to be temporarily built at
another nearby company while he searched for a new manufacturing site.

At about the same time, a Peoria, Illinois, agricultural implement dealer named Murray M. Baker
heard about Holt's need for a new plant. Baker, who had operated Peoria's first automobile agency and
had also sold tractors, thought he had just the proposition for Holt.

Holt Caterpillar Co. Established

The Colean Manufacturing Company of East Peoria, Illinois, was a steam tractor manufacturer that
had fallen on hard times. When the company was forced into bankruptcy, the new well-equipped plant
went up for sale. Murray Baker informed the Holts about the Colean plant.

Pliny Holt liked what he saw and began negotiations to purchase the Peoria plant. When the sale was
finalized, a new company was formed to operate the plant – Holt Caterpillar Company. Pliny Holt
was its president and Benjamin Holt and Murray Baker became directors.

On February 16, 1910, Holt Caterpillar Company took possession of the East Peoria facility with 12
employees on the payroll. Over the next five months, the new company built only three machines;
however, by the end of 1910, they had built an additional 12 machines and had grown to 65
employees, working for an average of 25 cents per hour.

Holts Exported First Crawler Tractor

In 1909, the Holts exported their first crawler tractor to Tabasco Plantation Co. Sugar Refinery in
Pueblo, Mexico. A year later, they shipped a crawler to Argentina for demonstration. Within two
months, they received orders from Argentina for two machines worth $4,000 each.

Export orders for Mexico, Argentina and Canada grew rapidly. By 1911, 25 track-type tractors had
been sold in Argentina. Stockton's capacity for building crawlers was strained to the breaking point.
To handle the increasing demand, the Holts decided that the East Peoria Plant would handle exports
and all U.S. business east of the Rocky Mountains, while Stockton would concentrate on tractors for
the Pacific Coast, as well as combines, wagons and other agricultural goods.

C.L. Best Gas Traction Co. Formed

In 1910, C.L. Best decided to leave the Best Manufacturing Company, then owned by the Holts. A
few months later, he formed his own company – C.L. Best Gas Traction Co. – in Elmhurst, California,
with the goal of manufacturing wheel-type gasoline tractors, combined harvesters and steel castings,
using his own designs.

C.L. Best's First Track-Type Tractor

C.L. Best began to design and develop his own track-type tractors. They differed from Holt’s designs
in key mechanical details such as using differential instead of individual steering clutches, booster
steering of the hand-operated wheel and gear drive instead of chain.

Released in 1912, his first track-type tractors were known as the 70 Track Layer. “Track Layer”
became C.L. Best’s trademark, which was later changed to “Tracklayer.” This model was upgraded to
the 75 Tracklayer in 1914 and produced through 1919. Other Tracklayer models quickly followed and
soon gained worldwide exposure.

C.L. Best's Business Expanded

C. L. Best’s product line continued to expand and more space was needed to keep up with increased
production. In 1913, The Holt Manufacturing Company had stopped manufacturing Best products and
closed the Best Manufacturing Company plant, leaving the San Leandro facility vacant.

In 1916, C. L. Best purchased his father’s old San Leandro facility from the citizens of San Leandro.
He tore down the old buildings and built a more modern factory. When the new buildings were
completed, C. L. Best moved his tractor production to San Leandro.

3. WWI Challenges
Holt Caterpillar Tractors during the War

In 1914, World War I had started in Europe and the United States was busily engaged in extensive
training maneuvers. Holt tractors were tested before U.S. Army officials, and they were quickly
adopted as standard engineering equipment – an honor consistently retained by Caterpillar.

European military authorities bought every commercial tractor Holt's East Peoria factory could turn
out; however, the U.S. government took a different approach. They demanded new designs for
military tractors instead of buying Holt’s commercial product.
Holt Tractor Inspired Development of Tank

Representatives of all the allied governments witnessed the spectacular performance of these
revolutionary prime movers. In fact, these same machines made such an impression on the military
that they inspired the development of the British tank.

Holt Hit Rough Spot after War

When the war ended in 1918, Holt was forced to convert from war to peace conditions almost
overnight. Several factors complicated the process. First, governments had summarily canceled their
military orders. This left the Holt factories with large inventories of military machines. The U.S.
government sold most of their military tractors to state and local governments at greatly reduced rates,
further compounding the problem.

Second, a nationwide financial depression occurred from 1920-1923, preventing a lot of tractor sales
to farmers. And the C. L. Best Gas Traction Co. had grown and cornered the U.S. agricultural market
while the Holts had been busy in the military market. The Holts now had a major competitor for the
few sales opportunities available after the war.

Third, the sales organization had been neglected during the war years, when virtually all tractor
production was devoted to military customers. The company's procedures and practices were now
based on wartime conditions

C.L. Best's Company Built Strong Dealer Network

After the war ended, C. L. Best’s company continued to grow. In 1920, he decided to change the
name of his company from the “C.L. Best Gas Traction Company” to the “C.L. Best Tractor Co.” to
better reflect the nature of his business.

Although its “Tracklayers” were showing up around the globe, the company’s reputation was still
small compared to that of The Holt Manufacturing Company. To compensate for this, C.L. Best
developed a strong sales force. His dealer network grew from 15 dealers at the end of World War I to
43 dealers worldwide by 1925.

Best and Holt Developed Different Strengths

By 1925, the Best and Holt companies developed different strengths. Best’s company had the
beginnings of a better dealer network, better financial status and more advanced tractor design.

The Holt organization had a worldwide reputation and name, bigger factories, a 40-year-old combined
harvester line and the Caterpillar trademark.
4. Caterpillar Tractor Co. in the '20s and '30s
Caterpillar Tractor Co. Formed

In April 1925, a group of investors formed and incorporated the Caterpillar Tractor Co. with
the intent to manufacture track-type tractors. They purchased the C.L. Best Tractor Co. and
The Holt Manufacturing Company and merged them into this new corporation. The merger of
these two leading competitors helped place the new company in a premier spot in the
marketplace.

The Caterpillar Tractor Co.’s first product line consisted of five tractors, and C.L. Best
became the company’s first chairman.

One of the new company's first challenges was selecting dealers from among the former Best
and Holt organizations and choosing representation in each territory. By the end of 1925,
Caterpillar had 80 dealers established around the world.

Model Twenty Tractor

In 1927, the Caterpillar Model Twenty Tractor was introduced – the first tractor completely
designed and built by Caterpillar Tractor Co. that was not based on an earlier Best or Holt
design.

Sales and Employment Grew

By 1929, East Peoria Plant had 25 acres under roof – more than double its space just four
years earlier. Employment had grown from 1,600 in 1925 to more than 4,000 people.

Sales were booming, including those made to various governments. Net sales had grown
from about $13.8 million in 1925 to nearly $52 million in 1929.

Sales Plummeted during the Depression

After the U.S. stock market crashed in the fall of 1929, it appeared at first that Caterpillar
sales wouldn't be badly hurt. Although sales fell slightly from 1929 to 1930, plants were still
working near capacity. Caterpillar's relative good health was due, in part, to export sales. In
particular, sales to the USSR provided attractive business to help keep factories busy. But
there was a definite limit to the number of machines that could be sold outside the United
States.

The Great Depression impacted businesses around the globe and eventually took its toll on
the company. Sales fell drastically – from $45.4 million in 1930 to $24.1 million in 1931, and
dropped again in 1932 to $13.3 million – when Caterpillar failed to earn a profit for the first
time.

First Motor Grader Introduced

In 1928, Caterpillar acquired Russell Grader Manufacturing Co. and added a new line of road
maintenance products with enormous sales potential. The Russell engineers’ know-how
contributed to the introduction of the Caterpillar Auto Patrol in 1931, the industry’s first true
motor grader.

First Diesel Tractor Released

When Caterpillar introduced the Diesel Sixty Tractor in 1931, the company had something to
make a depression-wracked world sit up and take notice. Just when customers had their backs
to the wall because of the lack of work and their own operating costs, Caterpillar diesel
crawlers gave them an incredibly effective tool to take the offensive – to do more work at less
cost. Customers found that the diesel tractor could slash their fuel bills by at least half.

The Caterpillar® D9900 engine model powered the Diesel Sixty and was the world’s first
mass-produced diesel engine to be developed, manufactured and applied as a power plant in a
mass-produced vehicle.

Diesel Tractor Demand High

Demand grew for Caterpillar diesel tractors and engines, and the company responded by
designing more models.

While competitors struggled to bring out their own diesel models, Caterpillar moved swiftly
to the forefront of U.S. manufacturers.

Caterpillar Revamped Product Line

Formed in 1931, the company's Special Sales Division sold Caterpillar diesel engines to other
manufacturers. The engines were successfully promoted in power shovels, compressors,
dredges and a host of stationary applications.

In December 1931, the company adopted a new color scheme for all Caterpillar products. The
gray-with-red-trim colors carried over from Holt were replaced with Caterpillar “Hi-Way
Yellow" with black trim.
By early 1933, the company had a completely new product line. Every model of tractor,
engine and road machinery had been redesigned since 1930, and new diesel tractors were
now outselling gasoline-powered models.

More New Products Unveiled

In 1935, Caterpillar introduced its first diesel engine designed for non-tractor applications.
The D17000 was designed specifically for use by other manufacturers. This eight-cylinder
industrial and marine engine was so successful it was manufactured for 20 years.

That same year, Caterpillar unveiled the RD6, RD7 and RD8 tractors, known today as the
D6, D7 and D8 tractors.

Diesel Engine Growth

In 1939, Caterpillar introduced the first self-regulating generator set packaged and serviced
by a single manufacturer.

That same year, Caterpillar introduced its first diesel truck engine, the D468. The six-cylinder
D468 was rated at 90 hp at 1800 rpms and could run all day on $5 worth of fuel.

A second diesel truck engine was introduced in 1940, but both were discontinued during
World War II. Caterpillar would not enter the diesel truck engine business again until 1960.

5. WWII and the 1940s

Products for the Military

In the early 1940s, Caterpillar track-type tractors, motor graders and generator sets found
their way into military applications.

Reports flowed in about the extraordinary performance of the company's products. Track-
type tractors repaired shelled roads, bridges and airfields and built new ones, keeping vital
supply lines open. And Caterpillar diesel engines and generator sets helped power hospitals.

In 1943, the U.S. government asked the company to step up production of its tractors, and
Caterpillar began building machines in record numbers.

New Earthmoving Products Announced

While war demands were pushing Caterpillar beyond its production limits, managers were
charting the future. Late in 1944, they announced the company's intention to build a new line
of earthmoving products: scrapers, wagons, bulldozer blades, rippers and the controllers to
operate these tools. These items previously had been made under formal arrangement with
Caterpillar, by a group of companies known as Allied Equipment Manufacturers.

As soon as the war ended and Caterpillar's plans could be put into action, customers would
benefit from having tools and attachments matched more closely to Caterpillar machines in
terms of design, materials and workmanship.

Facilities Added to Meet Record Demand

n the years immediately following the war, one of the biggest problems the company faced
was getting enough product to customers. There was no post-war sales slump for Caterpillar
as there had been for the Holts following World War I.

In the United States, customers had been "making do" with obsolete equipment for years,
building up demand. And recovery efforts in Europe and Asia called for a large number of
construction equipment. By 1946, the backlog of orders was the biggest in company history.
A major effort was underway to expand East Peoria Plant by 50 percent. One of the most
significant additions was the opening of a large new diesel engine factory in 1947.

New Proving Grounds Opened

Because products were being redesigned and introduced at a rapid rate, the company needed
more and better testing areas. The Arizona Proving Ground opened in 1945, and a new, larger
Peoria Proving Ground followed in 1948.

Expansion helped the company catch up with demand and allowed introduction of more new
products – including four new diesel engine models in 1949 and the DW21 Wheel Tractor-
Scraper in 1950.

6. Caterpillar Tractor Co. in the '50s and '60s

Mechanized Construction on Global Scale

In the decades following World War II, Caterpillar's growth originated from two major
sources: a wider range of products manufactured and greater demand for "traditional" Cat®
products, fueled by large earthmoving projects such as the U.S. Interstate road building
program.

Throughout the world, postwar planners saw the need to raise living standards and prepare
for population growth. New housing, highways, dams, pipelines and construction of all kinds
were required to meet people’s rising expectations.
Such ambitious plans called for mechanizing construction on a scale never seen before World
War II. Everywhere, Caterpillar was the equipment of choice for getting earthmoving jobs
done. And Cat dealers’ product support efforts played a critical role in increasing demand.

First Overseas Subsidiary Formed

As the company entered the 1950s, it continued to make plans for more growth. Sales
opportunities were especially big in the United Kingdom and its Commonwealth trading
partners. In 1950, the company announced the formation of its first overseas subsidiary,
Caterpillar Tractor Co. Ltd. Its original mission was to work with the best British
manufacturers to produce parts that would live up to Caterpillar's worldwide standard of
quality. The subsidiary inspected, stored and distributed parts to dealers. Best of all, these
parts were paid for in British pounds. Caterpillar had taken its first step toward
multinationalism.

Joliet Plant Opened

Work began on an all-new plant – the first in nearly 40 years – to be built near Joliet, Illinois.
The new plant would help prevent overconcentration in East Peoria.

When the Joliet Plant opened in early 1951, its first products were scrapers, wagons, blades,
rippers and controls. Caterpillar Tractor Co. now employed over 25,000 people worldwide.

More Foreign Subsidiaries Added

In 1954, a Brazilian subsidiary, Caterpillar Brasil S.A., was formed in Sao Paulo to procure
and sell parts. In addition, restrictions required that Caterpillar Brasil also manufacture
selected machines to ensure continued imports of the company’s U.S.-built products.

For similar reasons, Caterpillar Australia Pty. Ltd. was created in 1955 and opened a new
factory in Melbourne the following year. In 1956, Caterpillar of Canada Ltd. was formed.
Two other subsidiaries, Caterpillar Americas Co. and Caterpillar Overseas C.A., were also
created that year to assist other subsidiaries with sales outside the U.S.

In 1958, Caterpillar opened a new factory in Glasgow, Scotland.

More U.S. Facilities Opened

A parts depot in Denver, Colorado, began operations in 1954. A year later, production of
motor graders was transferred to the new plant in Decatur, Illinois. A new factory opened in
Aurora, Illinois, in 1958, along with a new parts distribution center in Morton, outside of
Peoria.

Early in 1957, Caterpillar announced plans to build a new Technical Center and Industrial
Engine Plant outside Peoria in Mossville, Illinois. The engine plant opened in 1959 and the
Tech Center’s first building opened in 1962.

Centralized World Headquarters

In 1953, Caterpillar created “General Offices” to aid operating units and direct activities
beyond the scope of particular plants or subsidiaries. Caterpillar General Offices had
originally occupied scattered quarters throughout East Peoria Plant. But as Caterpillar grew,
so did the company’s need for managerial, financial and control functions beyond the plant
level at a centralized location.

By the mid-1960s, the company acquired two square blocks in the middle of downtown
Peoria. They became the site of Caterpillar’s new worldwide headquarters building, which
opened in 1967. That same year, the company opened a new foundry outside Peoria in
Mapleton.

First Integrated Track Loader and Pipelayer

While continuing to improve its tractor product offerings, the company also created some
new product lines by designing what was formerly a tractor attachment into a completely new
machine.

Trackson's Traxcavator shovel attachment was the starting point for the Caterpillar No. 6
Shovel. Also marketed as a Traxcavator, the No. 6 Shovel was the first integrated-design
track loader in the industry when it hit the market in 1952.

In 1955, another former tractor attachment, the pipelayer, became an integrated, "industry
first" machine with the introduction of the No. 583.

Engine Sales Steadily Increased

The 1950s were years of evolution for the Cat engine product line. Caterpillar continued to
release new diesel engine models, jumping from a limit of 200 to over 500 hp. In 1953, an
Industrial Engine Division replaced the Special Engine Sales Group established in 1931.
Sales increased steadily as more special engine adaptations were offered to meet specific
applications.
In 1955, the company first offered a turbocharger, followed in 1958 with a jacket water
aftercooler. Both product innovations allowed the diesel to develop more horsepower while
reducing exhaust emissions and noise.

A major step in entering the commercial engine business came with the introduction of the
6.25-inch bore engine family in 1957. This engine extended the company’s industrial engine
power to 1425 hp.

Scrapers Added to Product Line

Caterpillar was by no means always first to market "new concept" machines. Often the
company preferred to wait until fully dependable technology caught up with an innovative
design. Wheel tractor-scraper units, for example, were pioneered in the 1930s by another
contractor/manufacturer – Robert LeTourneau.

Caterpillar waited until well after World War II to enter this business. By the early 1960s,
Caterpillar offered nine wheel tractor-scraper models.

Wheel Loaders and Off-Highway Trucks Unveiled

During the 1950s, a number of manufacturers sold and popularized wheel loaders. In 1959,
after careful research and testing, Caterpillar introduced its first wheel loader, the No. 944,
and customers responded enthusiastically.

In 1962, the company entered another new market – off-highway trucks. The 769, a 35-ton
capacity truck, went into production in 1963.

More Overseas Subsidiaries Added

Meanwhile, Caterpillar's expansion of non-U.S. manufacturing and marketing continued.

When Caterpillar invested in a country, company exports to that country increased, resulting
in more jobs in the U.S. Sales and jobs in the host country also grew and so did exports.

In 1960, another subsidiary – Caterpillar Overseas S.A. – was formed in Switzerland to

assume administrative and marketing duties for much of Caterpillar's business in Europe,
Africa, the Middle East and, initially, the Far East.

Manufacturing subsidiaries were established in Grenoble, France, in 1960; Mexico and South
Africa in 1962 and Belgium in 1965. Two years later, a new manufacturing plant opened in
Gosselies, Belgium. And Caterpillar Far East Limited was formed to manage the growing
business in Asia. In 1968, a parts facility in Singapore began serving dealers.
International Sales Trends

Industrialized countries, enjoying the longest sustained economic boom on record, built
thousands of miles of new highways. And the emergence of commercial jet airliners required
new and bigger airports. Multiplying energy and water needs meant new mines and dams –
and big demand for Cat equipment. It was a time of huge projects and large numbers of
earthmoving machines.

As Caterpillar began to encounter more competition outside the U.S., non-U.S. sales areas
grew in importance. By the late ’60s, the Japanese firm Komatsu was identified as the
company’s principal challenger in this increasingly international marketplace.

Sharing Ownership with Local Companies

The desire of some nations to retain greater control over foreign investments meant that
Caterpillar would sometimes have to share ownership of plants and subsidiaries with local
interests.

Cat products had been largely shut out of Japan by import controls; however, in 1963,
Caterpillar succeeded in forming an equal-ownership manufacturing and marketing company
with Mitsubishi Heavy Industries, Ltd., one of the most respected names in Japanese
industry.

In 1965, Caterpillar Mitsubishi Ltd. opened a factory in Sagamihara, near Tokyo, and
employees built their first tractor that spring. More models of track-type tractors, track
loaders and wheel loaders were added as Caterpillar Mitsubishi gained momentum against
well-established local competition.

A second joint venture, Tractor Engineers Limited, was formed in India with Cat dealer
Larsen and Toubro Limited in 1963.

7. Caterpillar Tractor Co. in the '70s

Introduction

Throughout the ’70s, new machines, engines and investments kept Caterpillar ahead of the
competition.

The year 1970 marked the first time that Caterpillar sales outside the U.S. surpassed those
inside the U.S.
New Product Families Added

In 1971, Caterpillar began producing wheel-type skidders and landfill compactors. A year
later, the company entered the growing hydraulic excavator market with the introduction of
the 225. The company followed with the 16G Articulated Motor Grader in 1973.

Within the last decade, the company’s product line more than doubled - from 33 Cat
machines in seven families to 70 machines in 12 product families.

Truck Engine Remanufacturing

In 1973, Caterpillar began remanufacturing used truck engines on an exchange basis, in an

effort to reduce customer costs, maximize product life and minimize environmental impact.

Caterpillar became the first U.S. producer of mid-range diesel truck engines to establish its
own captive facility devoted exclusively to remanufacturing

3400 Family Engines

In 1974, Caterpillar introduced the 3400 family of engines. This marked the largest
development program ever undertaken for any product family at Caterpillar to date. The in-
line 6, V-8, and V-12 engines were designed to be simpler, more reliable and less costly than
the engines they replaced. The 3400 family was broadly applied as truck, marine, industrial
and generator set power.

First Code of Conduct Published

While Caterpillar continued to focus on building new and innovative products, it never lost
sight of its core values. In 1974, Caterpillar issued its first Code of Worldwide Business
Conduct, which explained the company’s beliefs and practices in conducting business on a
worldwide scale. This publication is still in use today and has been revised several times to
better reflect the company’s changing business.

D10 Tractor and the Elevated Sprocket

In 1977, Caterpillar introduced the revolutionary elevated sprocket design on the new D10 –
the world’s most technologically advanced track-type tractor at the time. By separating the
drive sprockets from the track roller frame and elevating them above the tracks, more track
remained on the ground for improved traction. This new design was better able to absorb
ground shocks, resulting in increased machine life and operator comfort.
8. Caterpillar in the '80s
Introduction

Throughout the ’80s, the Cat product line and services expanded dramatically, and the
company made major investments for the future. It placed special emphasis on growing its
engine business and introduced several new engine families.

In 1980 and 1981, Caterpillar sales were strong, with both years setting sales records and
achieving an all-time profit high in ’81. The company was expanding and the future seemed
bright, but trouble was brewing.

Worldwide Recession Hit in '82

In 1982, a worldwide recession hit, resulting in a decline in energy markets and large
construction projects, record-high interest rates, stronger international competition, political
exclusion from markets, crisis-level debt in developing countries and a strong U.S. dollar.
Sales fell from $9.2 billion in 1981 to $6.5 billion in 1982.

When Caterpillar lost money for the first time in 50 years, the company responded with
decisive action.

Company Cut Costs and Employment

Cost reduction became a way of corporate life. Employment shrunk from 83,455 in 1981 to
58,402 people in 1983. Capital expenditures and inventories were slashed, and nine facilities
were eventually closed.

Dividends paid to shareholders were cut, and selective price reductions were made to help
preserve dealers' positions in the marketplace. But despite its economic challenges, the
company consistently rejected actions aimed at improving the short-term results at the
expense of the long term. For example, engineering and research investments and activities
remained at high levels.

New Strategies for Success

From 1982 to 1984, a group of Caterpillar managers developed long-term corporate strategies
to achieve the company's goals for sales, profits and return on investment through 1995.

By implementing these strategies, Caterpillar took steps to capitalize on its strengths. One
goal was to contract with other manufacturers to build products that could be sold and
serviced by the Cat dealer organization. The end-result was a more diversified, broader, cost-
effective product line.
Joint Ventures and Agreements

In 1982, Caterpillar formed a joint venture – P.T. Natra Raya – with dealer P.T. Trakindo
Utama. This arrangement met Indonesian requirements for local manufacturing and allowed
Caterpillar to continue exporting products to this critical sales area.

The company reached an agreement in 1985 with shareholders of DJB Engineering Limited –
later Artix Limited – to acquire rights and designs for the DJB line of off-highway articulated
dump trucks.

In 1985, Caterpillar and China signed a technical license agreement for manufacturing power
shift transmissions in China for use in Chinese-built construction equipment. In 1987,
Caterpillar finalized technical agreements that allowed Chinese factories and companies to
purchase Caterpillar technology, assistance and components.

Company Returned to Profitability in '85

The company’s new strategies had a positive impact on its bottom line. In 1985, after three
straight years of losses, Caterpillar posted a profit. An improving world economy provided an
additional boost.

That same year, Caterpillar added the integrated toolcarrier and backhoe loader to its product
line. In 1986, it introduced the D11 Track-Type Tractor.

Caterpillar had turned the corner, but more had to be done to ensure a strong and competitive
company.

Plant with a Future

In 1985, Caterpillar began an extensive plant modernization program called Plant with a
Future, or PWAF. Completed in the early ’90s, it helped the company reduce costs and
improve quality. The Caterpillar factories were now the most modern in the industry.

Large Mining Machines Added

In 1987, Caterpillar formed the Mining Vehicle Center at the Decatur Plant, following the
introduction of the 785 and 789 Off-Highway Trucks. Additional large mining machines also
went into development.

That same year, the company's joint venture, Caterpillar Mitsubishi Ltd. in Japan, was
expanded to include hydraulic excavators. The new venture was renamed Shin Caterpillar
Mitsubishi Ltd.
Caterpillar Reentered Ag Market

Caterpillar reentered the agricultural market in 1987 with the introduction of the Challenger
65 – an all-purpose farm tractor with revolutionary Mobil-trac traction system.

In 1988, Caterpillar dissolved a paving equipment arrangement with CMI Corporation,

formed in 1984, and then purchased another company and various technologies to build its
own paving machines.

Engine Product Line Expanded

Traditionally, diesel engine manufacturers focused either on large engines – with

comparatively small sales volumes – or on smaller engines – with high sales volumes. With
confidence in its diesel engine expertise, Caterpillar decided to expand its product line in both
directions. During the ’80s, the company embarked on the most aggressive new engine
introduction campaign in its history.

In 1981, the 3500 family went into production, with diesel engines ranging from 800 to 1,600
hp.

The company's engine business was further broadened in 1981 with the purchase of Solar
Turbines International Division of International Harvester Company. This gave Caterpillar
the ability to compete for sales in applications best served by turbines rather than diesel
engines.

Large and Small Engines Added

In 1985, production began on the 3600 family of diesel engines. These large engines ranged
from 1700 to 7300 hp.

Two years later, the company introduced the smallest engines it had ever made – the four-
and six-cylinder 1.1 liter per cylinder family. General Motors selected the 3116 – a six-
cylinder member of the 1.1 liter family – as the only diesel option in a new line of medium-
duty trucks.

By 1989, Engine Division accounted for over one-fourth of the company’s sales and
revenues.

Financial and Logistics Services

In addition to expanding its product line, Caterpillar further diversified in the ‘80s by starting
a number of companies that complemented the company's core businesses.
Formed in 1981, Cat Financial became the financial arm of Caterpillar, offering a wide range
of financing and insurance alternatives for the entire product line.

In 1987, Caterpillar created Cat Logistics Services to share its worldwide distribution
capability with other companies

Company Adopted New Name

For years, it had been clear that Caterpillar was more than just a manufacturer of tractors. In
1986, the company officially recognized that fact and changed its name from Caterpillar
Tractor Co. to Caterpillar Inc. – a name that better reflects the enterprise's growing diversity.

New Trademark Design

Consistent with modernization and change in the company, Caterpillar also adopted two new
trademarks in 1989. The new design marks identify the corporation and its products and
services by two words associated with the company throughout the world – Cat and
Caterpillar.

9. Caterpillar in the '90s

Corporate Structure Reorganized

In 1990, Caterpillar employees saw major changes to their function-based corporate structure.
The new Caterpillar organization was built around profit centers and service centers. This
new structure moved accountability and decision-making downward and increased the
company’s flexibility to do whatever worked best in terms of meeting customer needs.

Product Line Expanded Dramatically

By 1990, the Caterpillar product line expanded to 300 products, doubling from a decade
earlier. A lot of the new models were smaller, more versatile machines designed for the
emerging contractor. The company also redesigned many of its existing products.

Joint Ventures and Acquisitions

During the ’90s, joint ventures and acquisitions continued to fuel the company’s growth.

In 1990, Caterpillar acquired Balderson, a manufacturer of special attachments. The

following year, it purchased Barber-Greene, a leading paving equipment manufacturer, which
expanded the company’s paving product offering.
With the acquisition of two forest machinery companies in 1997, Caterpillar became one of
the top companies worldwide in the forestry business – more than doubling its forestry
product line.

Planned Growth

The purpose of all these joint ventures and acquisitions was to improve the quality and
reliability of Cat products and attachments, while expanding the company’s product line.
Caterpillar continually monitored product quality and its customers’ changing needs. Based
on its findings, Caterpillar strategically planned to expand some product lines while choosing
to discontinue others.

More Innovative Products Added

Caterpillar responded to customer needs with more new machines in the early ’90s –
including the 994 Wheel Loader, 300 Family Hydraulic Excavators, Quarry Trucks and
Mining Shovels.

In 1995, Caterpillar introduced the E-Series Articulated Trucks as part of a contractual

agreement with DJB Engineering Limited. A year later, it purchased the manufacturing
company, facilities and property in Peterlee, England, making the articulated trucks 100
percent Cat.

More innovative products followed, including the C10 and C12 Truck Engines, D11R
Carrydozer, 793C Off-Highway Truck and the 24H Motor Grader.

In 1996, Caterpillar formed the Electric Power Generation Group to sharpen its focus on the
goal of becoming a major player in the EPG business worldwide. Electric Power Generation
sales continued to grow throughout the ‘90s and into the next century.

Years of Change Paid Off

By the mid-’90s, Caterpillar began to reap the benefits of planned change with its new
organizational structure and joint ventures. Factory modernization started to produce
significant cost savings, and sales and profits continued to increase with the introduction of
new products
Large and Small Machines Unveiled

In 1998, the world's largest mechanical drive off-highway truck — the 797 — made its debut
at the Caterpillar Proving Ground in Arizona. Standing 7.3 meters (24 feet) tall and 9.14
meters (30 feet) wide, it could haul a payload of 326.6 tonnes (360 U.S. tons) of material.

In 1998, in response to changing customer needs for smaller, more versatile machines,
Caterpillar unveiled a new line of compact construction equipment. This new product line
included mini-excavators, skid steer loaders, compact wheel loaders and nearly 60 work
tools.

The Cat® Rental Stores

The introduction of the Cat compact machine line coincided with the introduction of The Cat
Rental Stores. For customers whose needs were more short term, The Cat Rental Stores
offered equipment, tools and power solutions.

Investing in China

Cat products have been associated with China’s growth and development for many decades.
From 1995 to 1999, Caterpillar invested in joint venture manufacturing facilities in China to
make hydraulic excavators, construction machinery components, diesel engines,
undercarriage parts and castings.

Largest Producer of Diesel Engines

Engine sales grew dramatically in the ’90s through product improvements, joint ventures,
mergers and acquisitions.

In 1996, Caterpillar purchased Germany’s Krupp MaK™ Maschinenbau, the world leader in
large diesel engines. In 1998, Caterpillar acquired the U.K.-based Perkins Engine Company,
extending its global position as a full-line producer of diesel and gas reciprocating engines.

By 1999, Caterpillar had become the world’s largest producer of diesel engines.

Diversification Bolstered Sales during Recessions

In 1995, profit surpassed a billion dollars for the first time, and annual sales and revenues
went beyond the $20 billion mark in 1998. The company’s financial performance remained
strong, despite worldwide recessions and depressed commodity prices in the late 1990s.
In order to remain profitable, Caterpillar was forced to cut spending and reduce its workforce
in 1999. Truck engine sales were strong and Cat Financial Services and Cat Logistics made a
substantial contribution to the bottom line, allowing the company to return a profit and
continue to invest in the future. Through diversification, Caterpillar was no longer a victim of
the same business cycles it had experienced in the past.

10. Caterpillar in the New Millennium

75th Anniversary Celebrated

At the start of the new millennium, Caterpillar celebrated its 75th year in business. During
this period, the Cat product line had grown from only five tractors in 1925 to more than 300
machines – plus a wide range of engines, turbines and related services.

In 2000 alone, Caterpillar introduced more than 20 new products, including the C-Series
Excavator line and updated articulated trucks, track-type tractors and scrapers.

That same year, Caterpillar purchased Sabre Engines Ltd. of England and Bitelli S.p.A. of
Italy, a major European manufacturer of paving equipment. The company also established a
new subsidiary in China – Caterpillar Paving Products Xuzhou Ltd.

6. Sigma Launched
In 2001, Caterpillar became the first company to globally launch 6 Sigma and deliver first-
year benefits in excess of implementation costs.

6 Sigma employs a set of strategies, statistics and methods to improve the processes
Caterpillar uses – including designing and manufacturing a product, marketing products and
services and providing business information to customers. 6 Sigma teams have generated
significant improvements in key focus areas of employee safety, product quality and product
availability. And 6 Sigma continues to be an integral part of the way Caterpillar does business
today.

Sustainable Development

 Overview
As Caterpillar moved into the 21st century, it increased its commitment to
sustainable development— meeting the needs of the present without
compromising the ability of future generations to meet their own needs.

In 2001, Caterpillar joined the World Business Council for Sustainable

Development, a coalition of 150 international companies united by a commitment
to sustainable development through environmental protection, social equity and
economic growth.
 In 2006, Caterpillar released its first annual Sustainability Report. The report
articulates the company’s commitment to improve the quality of life while
sustaining the quality of our planet.

 Global Remanufacturing
Remanufacturing is an integral part of the company’s sustainability efforts. As a
global leader in remanufacturing technologies, Cat Reman returns worn products
to original engineering specifications and helps reduce owning and operating costs
by providing customers same-as-new quality at a fraction of the cost of a new
part.

In 2002, Caterpillar expanded its global remanufacturing business by opening up a

remanufacturing facility in the United Kingdom – the first Cat Reman facility
outside North America.

In 2004, Caterpillar acquired Wealdstone Engineering and Williams Technology.

A year later, Cat Reman began offering its Capabilities to Original Equipment
Manufacturers (OEMs) in other industries, resulting in new alliances with
companies such as Land Rover and Honeywell.

 Expanded Reman Business

In 2006, Caterpillar further expanded its remanufacturing business with the
acquisition of Progress Rail, a leading provider of remanufactured locomotive and
railcar products and services to the North American railroad industry. In addition
to its service capabilities, Progress Rail brought a strong, integrated distribution
network to Caterpillar.

Today Caterpillar is one of the world’s largest remanufacturers. It annually

remanufactures more than 2 million units — recycling 59 million kilograms (over
130 million lbs.) of products.

 ACERT™ Technology
Cat ACERT™ Technology is another example of sustainable solutions for
customers. Caterpillar introduced this breakthrough engine emissions control
technology in 2001 to help meet U.S. Environmental Protection Agency (EPA)
stringent emissions regulations.

ACERT’s unique “building blocks” design leverages the engine’s fuel system, air
system, electronic controls and aftertreatment to significantly reduce two types of
diesel fuel emissions without sacrificing power, performance or fuel efficiency.
 ACERT Technology was the result of more than $500 million in research and
development and more than 250 patents. And it remains the foundation for diesel
engine development at Caterpillar.

 Continuing the Journey to Near-Zero Emissions

In 2011, Caterpillar introduced the next generation of Cat machines and engines,
building upon the success of ACERT Technology and a commitment to provide
more value for customers.

These products not only meet the world’s most stringent emission regulations –
US EPA Tier 4, European Union (EU) Stage IIIB/IV and Japan MLIT 4 – they
also offer improved fuel consumption, more power to ground, the latest in
operator comfort and safety, and outstanding reliability and durability.

 Responding to Natural Disasters

One continuing element of sustainable development for Caterpillar is helping
communities rebuild after natural disasters – beginning with the San Francisco
earthquake in 1906 to the Haiti earthquake in 2010 and Japan earthquake and
tsunami in 2011.

Caterpillar has a long-standing tradition of responding to disasters around the

world. Employees, dealers and corporate leaders regularly join together to donate
machinery, resources and money for relief and recovery efforts for all types of
disasters.

Emerging Markets

In 2003, the company introduced a new critical success factor focusing on growth in China,
India and the Commonwealth of Independent States— emerging areas of the world that
represented a major growth opportunity for Caterpillar and its dealers.

The year 2004 marked the beginning of a period of explosive growth for the company.
Caterpillar sales and revenues grew to a record $30 billion with record profit of $2 billion.

General Motors Europe formed a joint venture with Cat Logistics in 2005, creating the largest
logistics services agreement ever. The following year, Cat Logistics opened a new parts
distribution center in Shanghai.

Enterprise Strategy

 Overview
In 2005, Caterpillar launched a new enterprise strategy, including Vision 2020, to
prepare for anticipated global growth. It encompasses a series of five-year
strategic plans, with specific goals in the area of people, product and process
 performance, and profitable growth. While not a dramatic shift in direction, it set
aggressive targets, particularly in the areas of employee safety, product quality
and customer order-to-delivery capability. It also put a strong focus on rapid
alignment and execution across all of the company’s business units.

This strategy enabled Caterpillar to act quickly when economic crisis hit in 2008.
Despite a 37 percent decrease in sales and revenues in 2009, Caterpillar delivered
profit, improved its balance sheet, upheld a mid-A credit rating, maintained a
dividend and contributed to employee pension plans.

 Our Values in Action

At the foundation of the new enterprise strategy was Our Values in Action, the
latest update to the company’s Worldwide Code of Conduct, first published in
1974.

This Code of Conduct integrated the values and behaviors that have made
Caterpillar successful for more than 85 years – and will continue to drive its
success in the future.

Our Values in Action helps Caterpillar employees put their values and principles
into action every day – emphasizing the key values of integrity, excellence,
teamwork and commitment.

Caterpillar Production System

In 2005, Caterpillar began applying the principles of the Caterpillar Production System (CPS)
across its global manufacturing base to help maintain the highest quality products at the
lowest cost. The ultimate goal is to have one production process worldwide. CPS deploys
best practices, standard processes and cultural changes to improve safety, quality, velocity
and cost.

Caterpillar applies the principles of CPS across the entire supply chain with the goal of
producing even higher quality products - faster and more efficiently.

Sales and Business Growth

In 2006, sales and revenues passed the $40 billion mark with $3.5 billion in profit.

Continuing its upward climb, sales and revenues went beyond the $50 billion mark with more
than $3.5 billion in profit by 2008.

In 2010, Progress Rail acquired Electro-Motive Diesel, creating a global locomotive

manufacturing and rail services company.
Mining Product Line Expanded

In 2011, Caterpillar completed its $8.8 billion acquisition of Bucyrus International, Inc. - the
largest in the company’s history. This acquisition allows Caterpillar to offer the broadest
range of surface and underground mining products and solutions in the mining industry. With
the purchase of Bucyrus, Caterpillar now offers customers a one-stop shop for mining
equipment. The acquisition added 149 unique sales models to the Cat mining family.

Hydraulic shovels, rope shovels, draglines, continuous miners, blasthole drills, long wall
systems, drills and roof bolters are just a few examples of equipment added to the Cat mining
product line.

*Equipment designs shown here are conceptual and may vary from actual production models

MWM Acquisition Increased Power Generation Options

At the end of 2011, Caterpillar acquired MWM, significantly expanding customer options for
sustainable power generation solutions.

The integration of MWM created important synergies, leveraging the two companies’
existing product ranges, advanced engine technologies, research and development resources,
manufacturing, distribution and customer support capabilities.

11. Caterpillar as a Global Leader

More Growth on the Horizon

In 1925, Caterpillar started with two manufacturing locations. Today, the company has more
than 500 locations worldwide including manufacturing, marketing, logistics, service, research
and development, and related facilities, along with Cat dealerships.

Over half of its sales are to customers outside the United States, solidifying its position as a
global supplier and leading U.S. exporter.

Since 1990, sales and revenues have grown from just over $11 billion to a record-breaking
$60.14 billion in 2011.

Diversification Key to Success

One of the keys to Caterpillar’s long-term success is diversification across all its businesses.
The company has accomplished diversification in a variety of ways: by acquiring smaller key
companies with complementary products, establishing joint ventures, creating new
subsidiaries that focus on an area of expertise and building on and expanding core
competencies internally.
Caterpillar owns a complete portfolio of brands whose roles and relationships support the
growth needed to achieve its enterprise goals.

Cutting-Edge Technology

Cat products are world-renowned, not only for their quality and reliability, but also for their
use of technology to improve product performance and customer value. For example, mine
sites equipped with MineStar System have more technology at work than most major airports.

The revolutionary D7E track-type tractor shown here is another example of cutting-edge
technology, featuring a diesel/electric drive system for unprecedented efficiency and
productivity. And engines with next generation ACERT™ Technology have reduced diesel
emissions to near-zero levels.

Caterpillar also uses industry-leading technology to develop and test its products. State-of-
the-art simulation and analysis capabilities reduce the time and cost of product development
and improve the quality of product designs, as well as the safety of manufacturing facilities.

Investing in the Future

Whether researching ways to move more dirt with less fuel, developing products that
generate fewer emissions, or finding new ways to exploit autonomous solutions, Caterpillar
carefully integrates ideas and actions to help customers achieve their business objectives.

Caterpillar invests millions of dollars in technology each working day. In 2011, investment in
research and development reached a record level of $2.3 billion.

Investment in new technologies and products has given Caterpillar its strongest product line
in history, and the company is continuing to invest in people and facilities around the globe to
expand capabilities and capacity in the interest of Cat customers and shareholders.

Employing the Best in the Industry

Caterpillar’s presence stretches to every continent, and its product groups are No. 1 or No. 2
in every industry it serves.

Of course, the driving force behind the company’s success is its people. They are passionate
about their work and committed to excellence. Caterpillar is made up of over 200,000
talented employees, dealers and suppliers stationed around the world.

Caterpillar has 8,000 engineers and more than 350 PhD-level scientists and technology
experts. In 2010 alone, the company was issued 620 patents.
Caterpillar people work with a common purpose – to encourage progress, to improve quality
of life and to make a positive difference in the world.

Safety Always Top Priority

Making safety a top priority is about putting people first, and Caterpillar is committed to
improving safety across the globe.

The ultimate goal is zero injuries as a company, and Caterpillar is working hard to achieve it.
In 2010, 40 percent of Caterpillar facilities reached zero recordable injuries.

Worldwide Dealer Network

The Cat worldwide dealer network plays a critical role in maintaining the company’s
competitive edge and ensuring that customers in more than 180 countries receive the
maximum value from Cat products and services.

Virtually all Cat dealerships are independently run, locally-owned businesses. That’s why so
many Cat dealers have long-lasting relationships with their customers – many spanning two
or more generations.

Wide Range of Industries

Caterpillar supplies the machines, solutions and support so customers can excel in varying
terrain, soil and climate conditions.

Cat engines and gas turbines provide the horsepower for customers to move goods and
commodities across the globe, while generators deliver power wherever it is needed. Primary
industries include demolition and scrap, oil and gas, forestry, paving, general construction,
pipeline, governmental, power generation, heavy construction, quarry and aggregate,
industrial/OEM, railroad, landscaping, road construction, marine, underground utilities,
mining and waste services.

World-Class Services

In addition to its wide range of products, the company also offers an extensive line of
services to dealers and customers. Cat Logistics continues to offer warehousing and
operations management, information technology, inventory and planning management and
logistics consulting.
For more than 30 years, the Financial Products Division has offered a wide range of financing
and insurance alternatives for Cat machinery, engines and Solar® gas turbines, as well as
other equipment and marine vessels.

Cat Logistics and Cat Financial have grown dramatically in the last few decades and have
become a significant part of Caterpillar’s stable sales and revenues base. They provide
diversification into businesses that defy traditional capital goods business cycles.

Today's Work, Tomorrow's World

Caterpillar responds to customer needs with the highest quality products and a desire to
improve the world in which we live.

No matter where you look around the globe, Caterpillar is making sustainable progress
possible. In countries around the world where we turn on the lights, build the roads, bring the
financing and technology, and the experience to enable lasting change, Caterpillar’s goal is to
make sure that the world will always be better tomorrow because of the work Caterpillar
employees, dealers and suppliers are doing today.

For more information about the company, visit Caterpillar.com.