Profile: Caterpillar Inc (CAT.

N)
(reuters)

Full Description

Caterpillar Inc. (Caterpillar), incorporated on March 12, 1986, is a manufacturer of

construction and mining equipment, diesel and natural gas engines, industrial gas
turbines and diesel-electric locomotives. The Company operates through segments,
including Construction Industries, Resource Industries, Energy & Transportation,
Financial Products segment and All Other operating segments. The Company's
products are sold primarily under the brands Caterpillar, CAT, design versions of
CAT and Caterpillar, EMD, FG Wilson, MaK, MWM, Perkins, Progress Rail, SEM
and Solar Turbines. As of December 31, 2016, the Company's machines were
distributed principally through an organization of dealers (dealer network), 49 located
in the United States and 123 located outside the United States, serving 190
countries.

Construction Industries

The Construction Industries segment is engaged in supporting customers using

machinery in infrastructure, forestry and building construction. The Construction
Industries segment sells machines to heavy and general construction, rental, quarry
and aggregates markets and mining industries. The Construction Industries product
portfolio includes various machines and related parts, such as backhoe loaders,
track-type loaders, mini excavators, wheel excavators, cold planers, road reclaimers,
site prep tractors, skid steer loaders, compact loaders, small and medium wheel
loaders, pipelayers, asphalt pavers, wheel and track skidders, wheel and track feller
bunchers, small track-type tractors, medium track-type tractors, motorgraders,
telehandlers, compactors, knuckleboom loaders, forestry excavators, and small,
medium and track excavators.
Resource Industries

The Resource Industries segment is engaged in supporting customers using

machinery in mining, quarry, waste and material handling applications. It
manufactures equipment for both surface and underground mining operations
around the world. Its equipment is used to extract and haul copper, iron ore, coal, oil
sands, aggregates, gold and other minerals and ores. In addition to equipment, it
also develops and sells technology products and services to provide customers fleet
management systems, equipment management analytics and autonomous machine
capabilities. The Resource Industries product portfolio includes various machines
and related parts, such as electric rope shovels, draglines, hydraulic shovels, track
and rotary drills, highwall miners, hard rock vehicles, continuous miners, track-type
tractors, mining trucks, longwall miners, wheel loaders, off-highway trucks,
articulated trucks, scoops and haulers, wheel tractor scrapers, wheel dozers, landfill
compactors, soil compactors, machinery components, electronics and control
systems, select work tools and hard rock continuous mining systems.

Energy & Transportation

The Company's Energy & Transportation segment supports customers in oil and
gas, power generation, marine, rail and industrial applications, including Cat
machines. The Energy & Transportation portfolio includes various products and
related parts, such as reciprocating engine powered generator sets; reciprocating
engines supplied to the industrial industry, as well as Caterpillar machinery;
integrated systems used in the electric power generation industry; turbines,
centrifugal gas compressors and related services; reciprocating engines and
integrated systems and solutions for the marine and oil and gas industries;
remanufactured reciprocating engines and components, and diesel-electric
locomotives and components and other rail-related products and services.
Financial Products Segment

The Company provides financing and related services through its Financial Products
segment. The Financial Products Segment conducts its business through Caterpillar
Financial Services Corporation (Cat Financial), a finance subsidiary of Caterpillar.
Cat Financial's primary business is to provide retail and wholesale financing
alternatives for Caterpillar products to customers and dealers around the world.
Retail financing primarily consists of the financing of Caterpillar equipment,
machinery and engines. Cat Financial also provides financing for vehicles, power
generation facilities and marine vessels that incorporate Caterpillar products. In
addition to retail financing, Cat Financial provides wholesale financing to Caterpillar
dealers and purchases short-term trade receivables from Caterpillar and its
subsidiaries. Cat Financial's retail leases and installment sale contracts include tax
leases, finance (non-tax) leases, installment sale contracts and governmental lease-
purchase plans. Cat Financial's wholesale notes receivable, finance leases and
installment sale contracts include inventory/rental programs and short-term
receivables. Cat Financial's retail notes receivables include loans that allow
customers and dealers to use their Caterpillar equipment or other assets as collateral
to obtain financing.

Caterpillar Life Insurance Company, a subsidiary of Caterpillar, is an insurance

company. As of December 31, 2016, Caterpillar Life Insurance Company was
licensed to conduct life and accident and health insurance business in 26 states and
the District of Columbia. The Company's insurance group provides protection for
claims under various programs, such as contractual liability insurance; cargo
insurance; contractors' equipment physical damage insurance; general liability,
employer's liability, auto liability and property insurance; retiree medical stop loss
insurance, and brokerage services for property and casualty and life and health
business.
All Other operating segments

All Other operating segments primarily includes activities, such as product

management and development, and manufacturing of filters and fluids,
undercarriage, tires and rims, ground engaging tools, fluid transfer products,
precision seals and rubber, and sealing and connecting components primarily for
Cat products; parts distribution, and distribution services responsible for dealer
development and administration, including a dealer in Japan, dealer portfolio
management and ensuring the distribution of machines, engines and parts. It is also
engaged in digital investments for new customer and dealer solutions that integrate
data analytics with digital technologies.

The Company competes with Joy Global, Inc., Volvo Group, Atlas Copco AB,
Sandvik Mining, Liebherr-International AG, Zhengzhou Coal Mining Machinery
Group Co., Ltd., Komatsu Ltd., CNH Industrial N.V., Deere & Company, Hitachi
Construction Machinery Co., Ltd., J.C. Bamford Excavators Ltd., Doosan Infracore
Co. Ltd., Hyundai Heavy Industries, Guangxi LiuGong Machinery Co., Ltd., Longking
Holdings Ltd., Sany Heavy Industry Co., Ltd., Xiamen XGMA Machinery Co., Ltd.,
XCMG Group, The Shandong Heavy Industry Group Co., Ltd., Strong Construction
Machinery Co., Ltd., Cummins Inc., Rolls-Royce Power Systems, GE Oil & Gas, GE
Power, Deutz AG, Wartsila Corp., MAN Diesel & Turbo SE, Siemens Energy, Rolls-
Royce Marine, Mitsubishi Heavy Industries Ltd., Volvo Penta, Weichai Power Co.,
Ltd., Kirloskar Oil Engines Limited, Generac Power Systems, Inc., Kohler Co., Inc.,
Aggreko plc, GE Transportation, Vossloh AG, Siemens Akteingesellschaft, Alstom
Transport SA, Voestalpine AG., Wells Fargo Equipment Finance Inc., Volvo
Financial Services, Komatsu Financial L.P. and John Deere Capital Corporation