Caterpillar 2008 Annual Report Download

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Big
Challenge
2008 Annual Report

Table of contents

  • Page 1
    Big Challenge 2008 Annual Report

  • Page 2
    CATERPILLAR 2008 ANNUAL REPORT 2 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information This is our big challenge: How do we continue to compete in a turbulent global marketplace? This is our answer: By continuing to build a truly global ...

  • Page 3
    CATERPILLAR 2008 ANNUAL REPORT 3 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Table of Contents 08 Global Supply Chain Transformation U.S. and worldwide Powering Oil and Gas Russia and worldwide 04 Industry Leadership, New ...

  • Page 4
    CATERPILLAR 2008 ANNUAL REPORT 4 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information POWERING OIL AND GAS Russia and worldwide Industry leadership and established global presence are significant competitive advantages in a turbulent world ...

  • Page 5
    CATERPILLAR 2008 ANNUAL REPORT 5 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information CAT MACHINES MADE THE GRADE Contractor T.J. Lambrecht used a ï¬,eet of Cat machines to complete the mass grading project for extending a key runway, including...

  • Page 6
    CATERPILLAR 2008 ANNUAL REPORT 6 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information EXPANDING WORLDWIDE PORT CAPACITY China's ports and waterways International trade is spurring dredging industry demand related to port construction, ...

  • Page 7
    CATERPILLAR 2008 ANNUAL REPORT 7 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information TRANSPORTING EXCAVATED MATERIAL Depending on the system and project, Cat marine engines power booster pumps for a number of methods of transporting excavated ...

  • Page 8
    CATERPILLAR 2008 ANNUAL REPORT 8 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information EXTENDING CATERPILLAR VALUE Cat Logistics built a master distribution center in Elko, Nevada, to support Cat parts supply and manage MRO (maintenance, repair ...

  • Page 9
    ...company's global performance. Caterpillar India's manufacturing facilities produce quarry and off-highway construction trucks, backhoes and wheel loaders, engines, power generator sets and more-serving customers not only in India, but also worldwide. And Caterpillar's Engineering Design Center-India...

  • Page 10
    ...a tailored MineStar monitoring and control solution to optimally assign trucks, control complex materials and manage daily operations. Caterpillar extended its value by opening a master distribution center in Elko, Nevada to support Caterpillar parts supply and maintenance supply chain logistics for...

  • Page 11
    CATERPILLAR 2008 ANNUAL REPORT 11 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information WELCOMING CATERPILLAR JAPAN Akashi, Japan Since Caterpillar and Mitsubishi Heavy Industries (MHI) joined forces 45 years ago, Japan has been a key element ...

  • Page 12
    CATERPILLAR 2008 ANNUAL REPORT 12 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information SUSTAINABLE PROGRESS IN JAPAN Sanko Kaihatsu's facility uses Cat® hydraulic excavators and wheel loaders to manufacture road construction materials- "hybrid...

  • Page 13
    ... to Zahid's main facilities. The product support team continuously monitors equipment via Cat's Custom Track Service; and with Cat Logistics, parts are SERVICE ONSITE Cat dealer Zahid Tractor's two custom-built, fully equipped mobile workshops, manned by its own technicians, ensure prompt and expert...

  • Page 14
    ... 2008 ANNUAL REPORT 14 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information POWER FOR THE PROJECT Contractors purchased more than 400 new Cat® machines-track-type tractors, articulated trucks, motor graders, hydraulic excavators, wheel loaders...

  • Page 15
    CATERPILLAR 2008 ANNUAL REPORT 15 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information CAT PRECISION EQUALS SAFETY Skallingen Beach, Denmark How will we excel long term? By doing work no ENVIRONMENTALLY SENSITIVE Skallingen Beach's natural ...

  • Page 16
    CATERPILLAR 2008 ANNUAL REPORT 16 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information STILL A DANGER, 60 YEARS LATER Of 7,000 landmines in the area, an estimated five percent-some 350 mines-were still active. SUCCESS In April of 2008, the ...

  • Page 17
    ...of price points. Available exclusively through Cat dealers, CCU machines are backed by a Caterpillar warranty and world-class Cat parts and service. PUTTING CERTIFIED QUALITY TO THE TEST Customers can operate Cat Certified Used machines in IIASA's equipment testing ground before purchase or lease...

  • Page 18
    CATERPILLAR 2008 ANNUAL REPORT 18 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information FLOOD PROTECTION Cat dealer IIASA's customer CadmeCorp put Cat Certified Used machines to work in a project to build a levee against rainy season ï¬,oods in...

  • Page 19
    ... ANNUAL REPORT 19 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information SAFEGUARDING VENICE Venice, Italy High tides and rising sea levels are threatening one of the world's most beautiful cities. Caterpillar precision and performance are part...

  • Page 20
    CATERPILLAR 2008 ANNUAL REPORT 20 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Floodgate Caisson CATERPILLAR CRITICAL TO PRECISE FLOODGATE CONSTRUCTION The surfaces used for ï¬,oodgate construction were paved to precise specifi...

  • Page 21
    ...the number-one priority in AR Recycling's machine purchase decisions. When AR Recycling needed a new wheel loader, Cat dealer Zeppelin offered a Cat 966H together with a Caterpillar customized 360° Solutions package. With a three-year warranty (Equipment Protection Plan) and fixed-rate, long-term...

  • Page 22
    ...Financial Information Stockholder Information VSS: CONNECTED WORKSITE FOR EARTHMOVERS Cat Connected Worksite Solutions portfolio, recently expanded through the VSS joint venture formed with Trimble, empowers earthmoving customers to improve job site productivity, reduce fuel consumption and manage...

  • Page 23
    CATERPILLAR 2008 ANNUAL REPORT 23 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information

  • Page 24
    ... 2008 ANNUAL REPORT 24 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information BUILDING CPS MOMENTUM Torreon, Mexico, and worldwide Our future depends on next-level performance, and we're making real progress. More and more Caterpillar locations...

  • Page 25
    ... ANNUAL REPORT 25 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information DRIVE STANDARD WORK AND MAKE IT VISUAL To support the CPS focus on building a culture of continuous improvement, the production ï¬,oor has designated areas where employees...

  • Page 26
    ... ANNUAL REPORT 26 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Letter from our Chairman 2008 was a tale of two years. For the first nine months, the boom that began in 2004 rolled on. We were driven by solid growth in the developing...

  • Page 27
    CATERPILLAR 2008 ANNUAL REPORT 27 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Despite recessionary conditions in North America, Europe and Japan, Team Caterpillar continued to We shipped tens of billions of dollars in equipment new ...

  • Page 28
    ... long-term strategic initiatives › Working closely with dealers and suppliers worldwide to stay aligned for lower capacity requirements, increased efficiency and overall cost management in training and development. We invested to expand › Reducing total compensation for management development...

  • Page 29
    ... 2008 ANNUAL REPORT 29 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Executive Office We have realigned our 31 divisions under seven executive officers. This team is a strong, globally experienced group with broad industry and customer...

  • Page 30
    ... 2008 ANNUAL REPORT 30 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Caterpillar at a Glance Strength to meet the challenge Caterpillar has the people, the international presence, the leadership in industries critical to global...

  • Page 31
    ... 2008 ANNUAL REPORT 31 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Worldwide Locations Dealer Main Stores Manufacturing Facilities Office and Other Facilities FG Wilson, MaK, Perkins, Solar Distributors Progress Rail Locations Parts...

  • Page 32
    ... 2008 ANNUAL REPORT 32 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Product Range We will meet the challenges we face by helping customers meet the challenges they face. From massive to mini, world-class Cat® machines and engines...

  • Page 33
    CATERPILLAR 2008 ANNUAL REPORT 33 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Caterpillar At a Glance Products Industries Services Brands

  • Page 34
    CATERPILLAR 2008 ANNUAL REPORT 34 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Financial Information Good companies become great companies when they face and conquer adversity This economic downturn will not stop the world's need for ...

  • Page 35
    ...ANNUAL REPORT 35 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Five-year Financial Summary (dollars in millions, except per share data) Years Ended December 31 2008 $ 51,324 $ 48,044 2007 $ 44,958 $ 41,962 2006 $ 41,517 $ 38,869 2005...

  • Page 36
    CATERPILLAR 2008 ANNUAL REPORT 36 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Sales & Revenues (dollars in millions) Machinery $18,844 $22,931 $26,062 $28,359 $31,804 Engines $11,075 $12,807 $13,603 $16,240 $9,492 Financial Products...

  • Page 37
    CATERPILLAR 2008 ANNUAL REPORT 37 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Operating Profit (dollars in millions) Machinery $1,756 $2,431 $3,027 $2,758 $1,803 Engines $589 $1,071 $1,630 $1,826 $2,319 Financial Products $470 $531...

  • Page 38
    CATERPILLAR 2008 ANNUAL REPORT 38 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Sales & Revenues by Geographic Region (dollars in millions) $2,001 $12,769 Machinery Engines Financial Products 1 2 $590 $5,445 North America $20,215 ...

  • Page 39
    CATERPILLAR 2008 ANNUAL REPORT 39 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information New Machinery Distribution to End Users (2008 dealer reported worldwide distribution of Cat® machinery by major end use) 2% 3% 4% 4% 7% Waste Forestry ...

  • Page 40
    CATERPILLAR 2008 ANNUAL REPORT 40 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Full-Time Employees at Year-End 1 Sales & Revenues Per Employee 2 (dollars in thousands) $415 $445 $460 $461 07 $482 08 North America 54,284 EAME 26,983...

  • Page 41
    CATERPILLAR 2008 ANNUAL REPORT 41 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Cat Dealer Employees at Year-End 57 $7,886 North America Cat Dealer Employees Cat Dealers Cat Dealer Net Worth (dollars in millions) 51 EAME 51,712 32,212...

  • Page 42
    ... increase its investment in new products and services. In 2008, over 600 employees were named on the more than 430 patents granted to Caterpillar companies worldwide. 33% Education Exports from the U.S. (dollars in millions) 31% Health and Human Services Canada $ 2,172 18% Culture and Arts EAME...

  • Page 43
    ...43 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information 2008 Board of Directors ( as of December 31, 2008 ) W. Frank Blount 70 Chairman and CEO of JI Ventures, Inc. (venture capital). Other directorships: Alcatel-Lucent S.A.; Entergy Corporation...

  • Page 44
    ... Presidents Kent M. Adams Financial Products William P. Ainsworth Progress Rail Services Ali M. Bahaj Caterpillar Japan Sidney C. Banwart Human Services Michael J. Baunton (retiring May 2009) Europe, Africa, Middle East Operations Rodney C. Beeler Marketing and Product Support Center of Excellence...

  • Page 45
    ... 2008 ANNUAL REPORT 45 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Supplemental Stockholder Information STOCKHOLDER SERVICES Registered stockholders should contact: Stock Transfer Agent BNY Mellon Shareowner Services P.O. Box...

  • Page 46
    ... 2008 ANNUAL REPORT 46 Big Challenge Chairman's Letter Caterpillar At a Glance Financial Information Stockholder Information Credits PRODUCED BY Caterpillar Corporate Public Affairs DESIGN VSA Partners, Inc. PHOTOGRAPHY Anders Thomsen, Pon Equipment Caterpillar Television & Electronic Media...

  • Page 47
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