Cat: 'We're confident in our ability to deliver 2012 goals'
Tina Grady Barbaccia | March 28, 2011
Caterpillar Inc. Chairman and CEO Doug Oberhelman and members of the company’s executive office updated analysts on March 23 during CONEXPO-CON/AGG 2011 in Las Vegas on Caterpillar’s significant long-term growth opportunities and investments being made around the world to position the company to satisfy growing demand from customers.
At the show, Caterpillar is displaying nearly 40 machines, a wide variety of work tools, technology solutions, engines and components comprising three different exhibits totaling 60,000 square feet.
With worldwide machine demand already near the prior peak less than two years after the bottom of the worst recession in decades, and with more growth expected in the coming years, Caterpillar is focused on ramping up production and adding capacity around the world while maintaining a sharp focus on controlling costs.
“With business continuing to improve around the globe, we’re confident in our ability to deliver our 2012 goals and are focusing the company on our targets for 2015,” said Caterpillar Chairman and CEO Doug Oberhelman.
Caterpillar also outlined its new organizational structure with Group Presidents Rich Lavin and Steve Wunning discussing the growth opportunities and investments in Caterpillar’s machine businesses. Group President Gerard Vittecoq talked to analysts about growth and investment in the company’s power systems business.
“By 2015, we will have made $5 billion in investments to increase production capacity at existing and new Caterpillar facilities to support customers in every region of the world, including plans to nearly triple machine capacity across our operations in Asia,” said Oberhelman.”This is in addition to more than $10 billion in investments announced in 2010 for three significant acquisitions — Electro-Motive Diesel, Inc., Motoren-Werke Mannheim Holding GmbH (MWM) and Bucyrus International, Inc.
Together, these moves represent Caterpillar‘s commitment to leadership in support of our growing base of customers and to expand our products and services,” Oberhelman added.
At the meeting, Caterpillar’s Group President and CFO Ed Rapp outlined the company’s “portfolio management” approach to targeting investment opportunities.
“We’re focusing our resources on the key industries that offer the best sales and profit growth potential over the long-term and that fit our strategic profile — in other words, great growth opportunities that fit well with the strengths of Caterpillar,” Oberhelman said.
In 2010, Caterpillar updated the strategy and streamlined the organization to better serve customers, stockholders and employees.
“With the opportunities we see around the world, we have a very bright future,” said Oberhelman. “We also have a strong financial position and a strategy that focuses on helping our customers win. Our employees and leaders are moving at full speed and are ready to go to achieve our 2015 targets.”
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