PEORIA, Ill. – Caterpillar Inc. is in prime position to strengthen its global presence in the construction and mining business.
That news was shared recently by Chairman and Chief Executive Officer Glen A. Barton, in a meeting with a collection of financial analysts gathered at the company’s demonstration area outside Tucson, Ariz.
In the discussion of corporate strategy, Barton confirmed Caterpillar has plans to achieve $30 billion in sales and revenues this decade. The incremental growth of approximately $10 billion is divided between the company’s three business segments with about $5 billion in engines, $4 billion in machines and $1 billion in financial products.
“We are taking aggressive steps in the right direction to assure our continued competitive leadership in today’s global marketplace,” Barton explained. “We’re confident recent results reflect the beginnings of success related to our strategic efforts.”
And the CEO pointed to 6 Sigma as the major contributor to the company’s financial results. “We’ve seen a direct impact of 6 Sigma on manufacturing costs, product quality and volume,” he noted. “In the second-quarter results announced last month, the major enabler for our increase in operating profit was 6 Sigma. It is delivering our corporate strategy by reshaping our company, making us more efficient and building the Caterpillar of tomorrow today.”
In presentations to the analysts, Barton and 11 other corporate officers outlined growth opportunities both in the developed and developing world of each of Caterpillar's business segments.
“The construction equipment business provides a strong foundation from which Caterpillar can grow,” described Caterpillar Group President Gerald L. Shaheen. “That growth is further enhanced by every other effort we've made to diversify, to broaden our reach and to become the world leader in a broad range of businesses.”
Another advantage for Caterpillar continues to be the company’s unmatched dealer network around the world, Shaheen continued. Today, the net worth of Caterpillar dealers totals $7.1 billion.
The author is Assistant Editor-Internet of Lawn & Landscape magazine and can be reached at aanderson@lawnandlandscape.com.