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Caterpillar, Inc.
Company Profile
Reference Code: 322
Publication Date: Oct 2005

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CATERPILLAR, INC.
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview ....................................................... 4
Key Facts........................................................................ 4
Business Description.................................................... 5
History ............................................................................ 6
Key Employees .............................................................. 8
Major Products And Services..................................... 13
Products And Services Analysis................................ 14
SWOT Analysis ............................................................ 15
Top Competitors .......................................................... 19
Company View ............................................................. 20
Locations and Subsidiaries........................................ 25

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CATERPILLAR, INC.
Company Overview
COMPANY OVERVIEW
Caterpillar is a manufacturer of earthmoving machinery, construction and mining
equipment and agricultural equipment. The company also manufactures diesel and
natural gas engines, industrial gas turbines and logging and oil industry equipment. It
is headquartered in Peoria, Illinois.
For fiscal 2004, Caterpillar generated revenues of US$30.3 billion, a 32.9% increase
over the previous year’s revenues. The company reported a net income of US$2
billion for 2004.
KEY FACTS
Head Office Caterpillar, Inc.
100 North East Adams Street
Peoria
IL 61629
United States
Phone +1 309 675 1000
Fax +1 309 675 1182
Web Address http://www.cat.com
Revenues/turnover
(US$ Mn)
30251
Financial Year End December
Employees 76921
SIC Codes SIC 35 Industrial machinery and equipment
SIC 3523 Farm Machinery and Equipment
NAICS Codes 332212, 332323, 333111, 333922
New York Ticker CAT

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CATERPILLAR, INC.
Business Description
BUSINESS DESCRIPTION
Caterpillar is a manufacturer of machinery and equipment for a number of industries.
The company is organized into four divisions: machinery, engines, financial products,
and Cat Logistics.
The machinery line of business includes the design, manufacture, marketing and
sales of construction, mining and forestry machinery, track and wheel tractors, track
and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel
excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated
trucks, paving products, telescopic handlers, skid steer loaders and related parts. The
company also includes logistics services for other companies in this line of business.
The engines segment includes the design, manufacture, marketing and sales of
engines for Caterpillar machinery; electric power generation systems; on-highway
vehicles and locomotives; marine, petroleum, construction, industrial, agricultural and
other applications, and related parts. The company manufactures diesel, heavy fuel
and natural gas reciprocating engines for the on- and off-highway mobile markets, as
well as for a range of stationary applications and manufactures industrial turbines for
the oil and gas, and power generation markets.
The financial products segment consists primarily of Cat Financial, Cat Insurance, Cat
Power Ventures and their respective subsidiaries. Cat Financial provides a range of
financing alternatives to customers and dealers for Caterpillar machinery and
engines, solar gas turbines, as well as other equipment and marine vessels. Cat
Financial also extends loans to customers and dealers. Cat Insurance provides
various forms of insurance to customers and dealers to help support the purchase and
lease of the company’s equipment. Cat Power Ventures is an active investor in
independent power projects using Caterpillar power generation equipment and
services. Cat Logistics provides supply chain solutions and services to the company
and over 50 companies throughout the world.
Cat Logistics, a wholly owned subsidiary of Caterpillar, provides supply chain
solutions and services to the company and over 50 companies throughout the world. It
operates 100 offices and facilities in 25 countries on six continents. Caterpillar
Logistics provides its full-service capabilities to companies in market sectors that
include automotive service parts, industrial service parts, consumer durables,
technology and electronics, manufacturing logistics and aerospace service parts.

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CATERPILLAR, INC.
History
HISTORY
Caterpillar was established in 1925 by Daniel Best and Benjamin Holt. The company
began its international expansion in 1950 with the establishment of Caterpillar Tractor
in the UK. In 1953, Caterpillar created a separate division for engine customers.
1963 saw Caterpillar and Mitsubishi Heavy Industries enter the East Asia market by
forming a joint venture in Japan. Caterpillar Mitsubishi started production in 1965.
The company acquired Germany’s MaK Motoren in 1996 and UK-based Perkins
Engines the year after.
In February 2003, Caterpillar acquired all outstanding shares in Hindustan Powerplus,
a joint venture in India that manufactured diesel generator sets.
In August 2003 Caterpillar and Eaton formed a joint venture known as Intelligent
Switchgear Organization to produce Cat-branded electrical distribution switching
products.
The company announced the formation of Caterpillar Power Generation Systems
(CPGS) in January 2004 in alliance with Solar Turbines. The next month saw a new
agreement between Caterpillar Logistics Services and CNH Global, resulting in the
closure of six Caterpillar Logistics facilities.
In February 2004, the company announced the acquisition of Turbomach, a Swiss
packager of industrial gas turbines and related systems.
In March 2004 Capstan acquired Caterpillar’s powdered metal component
manufacturing operation located in Rockwood, Tennessee.
Caterpillar announced in April 2004 the formation of a new Beijing-based leasing
entity. The establishment of Caterpillar (China) Financial Leasing occurred in April
2004.
Caterpillar Logistics Services (UK), a wholly owned subsidiary of Caterpillar,
announced in July 2004 that it had acquirde the parts business of MG Rover, a wholly
owned subsidiary of PVH.
In August 2004 the company announced the acquisition of Wealdstone Engineering, a
remanufacturer of gasoline and diesel engines. In the same month the company
acquired Williams Technologies, a remanufacturer of automatic transmissions, torque

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CATERPILLAR, INC.
History
converters, and engines for automotive and medium and heavy duty truck
applications.
The company formed new electric power generation and specialty products divisions
in October 2004. During December 2004, the company announced the signing of a
definitive agreement to acquire a minority ownership in Shandong SEM Machinery
(SEM), one of China’s key wheel loader manufacturers. The transaction was
completed in March 2005.

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CATERPILLAR, INC.
Key Employees
KEY EMPLOYEES
Name Job Title Board Compensation
James W. Owens Chairman and Chief Execu-
tive Officer
Executive Board
Gordon R. Parker Director Non Executive Board
W. Frank Blount Director Non Executive Board
John R. Brazil Director Non Executive Board
John T. Dillon Director Non Executive Board
Juan T. Gallardo Director Non Executive Board
William A. Osborn Director Non Executive Board
David R. Goode Director Non Executive Board
Eugene V. Fife Director Non Executive Board
Peter A. Magowan Director Non Executive Board
Charles D. Powell Director Non Executive Board
Edward B. Rust, Jr. Director Non Executive Board
Joshua I. Smith Director Non Executive Board
Gail D. Fosler Director Non Executive Board
Stuart L. Levenick Group President Senior Management
Douglas R. Oberhelman Group President Senior Management
Gerald L. Shaheen Group President Senior Management
Gerard R. Vittecoq Group President Senior Management
Steven H Wunning Group President Senior Management
David B. Burritt Vice President and Chief
Financial Officer
Senior Management

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CATERPILLAR, INC.
Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
James W. Owens
Board: Executive Board
Job Title: Chairman and Chief Executive Officer
Prior to his current position, Mr. Owens served as Vice Chairman and as Group
President of Caterpillar. Mr. Owens has been a director of the company since January
2004.
Gordon R. Parker
Board: Non Executive Board
Job Title: Director
Since: 2001
Mr Parker is former Chairman of Newmont Mining Corporation.
W. Frank Blount
Board: Non Executive Board
Job Title: Director
Since: 1995
Mr Blount is Chairman and CEO of JI Ventures, Inc.
John R. Brazil
Board: Non Executive Board
Job Title: Director
Since: 1998
Mr Brazil is President of Trinity University.
John T. Dillon
Board: Non Executive Board
Job Title: Director
Since: 1997
Mr Dillon is former Chairman and CEO of International Paper.

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CATERPILLAR, INC.
Key Employee Biographies
Juan T. Gallardo
Board: Non Executive Board
Job Title: Director
Since: 1998
Mr Gallardo is Chairman of Grupo Embotelladoras Unidas S.A. de C.V.; Chairman of
Mexico Fund Inc.; and Vice Chairman of Home Mart de Mexico, S.A. de C.V.
William A. Osborn
Board: Non Executive Board
Job Title: Director
Since: 2000
Mr Osborn is Chairman and CEO of Northern Trust Corporation.
David R. Goode
Board: Non Executive Board
Job Title: Director
Since: 1993
Mr Goode is Chairman, President, and CEO of Norfolk Southern Corporation.
Eugene V. Fife
Board: Non Executive Board
Job Title: Director
Since: 2002
Mr Fife is Managing Principal of Vawter Capital LLC.
Peter A. Magowan
Board: Non Executive Board
Job Title: Director
Since: 1993
Mr Magowan is former Chairman and CEO of Safeway Inc.
Charles D. Powell

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CATERPILLAR, INC.
Key Employee Biographies
Board: Non Executive Board
Job Title: Director
Since: 2001
Mr Powell is Chairman of Sagitta Asset Management Limited (asset management)
and Louis Vuitton UK Ltd.
Edward B. Rust, Jr.
Board: Non Executive Board
Job Title: Director
Since: 2003
Mr Rust is Chairman and CEO of State Farm Mutual Automobile Insurance Company.
Joshua I. Smith
Board: Non Executive Board
Job Title: Director
Since: 1993
Mr Smith is Chairman and Managing Partner of the Coaching Group, LLC.
Gail D. Fosler
Board: Non Executive Board
Job Title: Director
Since: 2003
Gail D. Fosler is Senior Vice President and Chief Economist of The Conference Board
(research and business membership organization).
David B. Burritt
Board: Senior Management
Job Title: Vice President and Chief Financial Officer
David B. Burritt is vice president and chief financial officer of Caterpillar Inc. Burritt
served as Caterpillar’s corporate controller from December 2002 to December 2004
when he was named vice president. Burritt began his career at Caterpillar in 1978 as
an accountant. He served as an inventory and budget accountant in Caterpillar’s
foundry operations and then moved to its General Offices in financial reporting and tax
roles. Beginning in 1994, he gained international experience by assuming the role of

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Key Employee Biographies
business manager for Cat Belgium S.A. He went on to become general manager of
Strategic and Business Services for Europe, Africa and the Middle East based in
Geneva, Switzerland. Burritt graduated with a Bachelor of Science degree in
Accounting from Bradley University in 1977. He earned an MBA from the University of
Illinois in 1990. He also completed the Stanford University Executive Program in 1998.
He is a lifetime member of Phi Kappa Phi. Burritt is a Certified Public Accountant and
member of the American Institute of CPAs. He is also a Certified Management
Accountant and member of the Institute of Management Accountants. He serves as a
member of the Corporate Executive Board’s Working Council for CFOs, Financial
Executives International and the Conference Board Council of CFOs.

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CATERPILLAR, INC.
Major Products And Services
MAJOR PRODUCTS AND SERVICES
Caterpillar is a manufacturer of earthmoving machinery, construction and mining
equipment and agricultural equipment. The company’s products and services include:
Articulated trucks
Backhoe loaders
Log loaders
Log skidders
Mining shovels
Motor graders
Off-highway trucks
Paving products
Pipe-layers
Related parts
Skid steer loaders
Telescopic handlers
Track and wheel excavators
Track and wheel loaders
Track and wheel tractors
Wheel tractor-scrapers
Engines:
Engines for Caterpillar machinery
Engines for electric power generation systems
Engines for marine, petroleum, construction, industrial, and agricultural applications
Engines for on-highway trucks and locomotives
Financial services:
Financing to customers and dealers
Insurance to customers and dealers

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CATERPILLAR, INC.
Products And Services Analysis
PRODUCTS AND SERVICES ANALYSIS
For the fiscal year ended December 2003, Caterpillar generated revenues of $22,763
million, an increase of 13% over 2002. The increase in revenues was primarily due to
substantial machinery and engines sales, a favorable currency impact on sales and
higher financial products revenues. North America is the company’s largest market,
accounting for 51.7% of revenues in 2003.
The company is divided into three divisions; machinery (60.1% of revenues in 2003),
engines (32.4%), and financial products (7.5%).
Revenues by division
Machinery division reported sales of $13,768 million in 2003, an increase of 14.2%
over 2002. The increase in revenues was primarily due to increase in sales volumes,
a favorable currency impact and improved price realization.
Engines division reported sales of $7370 million in 2003, an increase of 10.4% over
2002. The increase in revenues was primarily due to increase in sales volumes, a
favorable currency impact and emissions-related price increases.
Financial products division reported sales of $1715 million in 2003, an increase of
14% over 2002. The increase in revenues was primarily due to a favorable impact
from continued growth of earning assets at Cat Financial and an increase in earned
premiums on extended service contracts at Cat Insurance.
Revenues by geography
North America was the company’s largest market, with 51.7% of total revenues being
generated from there in 2003. During the fiscal year 2003, revenues from North
America reached $11,763, an increase of 11% over 2002.
Europe, Africa, the Middle East and the Commonwealth of Independent States
(EAME) accounted for 27.5% of overall sales in 2003. During the fiscal year 2003,
sales in EAME reached $6255 million, an increase of 15.1% over 2002.
Asia/Pacific accounted for 12.9% of overall sales in 2003. During the fiscal year 2003,
sales in Asia/Pacific reached $2930 million, an increase of 18.7% over 2002.
Latin America accounted for 8% of overall sales in 2003. During the fiscal year 2003,
sales in Latin America reached $1815 million, an increase of 9.8% over 2002.

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CATERPILLAR, INC.
SWOT Analysis
SWOT ANALYSIS
Caterpillar is the world’s largest manufacturer of earthmoving machinery and
construction and mining equipment and is a leading supplier of agricultural equipment.
It also manufactures diesel and natural gas engines, industrial gas turbines and
logging and oil industry equipment. It is a global leader in its sector and has a
worldwide presence. However, rising raw material costs can impact its profitability.
Strengths
Global market leader
Caterpillar is the world’s largest manufacturer of earthmoving machinery and
construction and mining equipment and is a leading supplier of agricultural equipment.
It has the highest revenue generation ($22,763 million) and market capitalization
(about $26,000 million) in its sector. It is also amongst the top 200 companies
worldwide.
Improving financial condition
After falling slightly in 2002, the company’s revenues increased by 13% in 2003, while
its profit increased by 37.7%. Over the five-year period 1999-2003, Caterpillar’s
revenues have increased by $3,061 million at a CAGR of 2.9%, while its profit has
Strengths Weaknesses
Global market leader
Improving financial condition
Diversified geographical spread
Mix of business reduces earnings volatility
Strong dealer network
Falling sales in Europe, Africa and the Middle East
High debt structure
Dealers’ low confidence of Caterpillar’s forecasting sys-
tem
Opportunities Threats
Opportunities in China and India
Increasing construction activity due to growing population
Joint development and acquisition programs
Rise in raw material prices
Mining dependent on coal prices and global GDP
UAW contract expiration can lead to production interrup-
tion

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CATERPILLAR, INC.
SWOT Analysis
increased by $153 million at a CAGR of 3%. With the world’s economic condition
improving, the company is in a strong position to capitalize on the rising opportunities
worldwide. Furthermore, the company’s third quarter 2004 results reported record
sales and revenues of $7.65 billion and record third-quarter profit of $498 million.
Third quarter results built on a successful first half year and results for the nine
months ended September 30 2004 were the best in company history, recording sales
and revenues of $21.68 billion and profit of $1.48 billion. These figures reflect the
healthy financial condition of the company, and 2004 sales and revenues are now
likely to come in at about 30% up on 2003.
Diversified geographical spread
The company generates revenues from most of the prominent markets in the world,
not relying heavily on a specific economy or geography. In 2003, over 50% of its
revenues were generated from markets outside the US. Diversified operations provide
resilience to the revenue stream and also protect the company against slowdown in a
particular economy. The company maintains a strong presence in matured markets
like Europe and the Middle East, and is rapidly increasing its presence in emerging
markets like China and India.
Mix of business reduces earnings volatility
As a result of its shift in mix from being simply a US-based construction equipment
supplier to being one of the most diversified machinery companies, Caterpillar has
become much less dependent on the sale of equipment. Accordingly, its earnings
volatility has been lowered.
Strong dealer network
Caterpillar has just over 200 full-line dealers worldwide (comprised of fewer than 100
ownership groups), with an aggregate net worth of $7,100 million; they employ over
90,500 compared with Caterpillar’s 69,169. The dealer network is Caterpillar’s most
significant asset. It is a key competitive differentiator and allows it to capture over 60%
of the market globally.
Weaknesses
Falling sales in Europe, Africa and the Middle East
The company’s sales volumes have been decreasing in the EAME region since
October 2003. However, due to positive currency exchange rates the revenues have
not been adversely impacted. The drop in sales has been brought on by sluggish

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CATERPILLAR, INC.
SWOT Analysis
European economic conditions which have led to a decrease in construction activity.
The company generates 27.5% of its revenues from this region, and a drop in sales
volumes is a cause of concern.
High debt structure
The company’s long-term debts have been rising increasing sharply in the recent
past. From $13,802 million in 1999 it rose to $19,816 million in 2003 at a CAGR of
7.5%. The debt to equity ratio has deteriorated from 2.52 in 1999 to 3.26 in 2003. A
further decline in the debt condition would place pressures on the cash flows of the
company.
Dealers’ low confidence of Caterpillar’s forecasting system
The availability of the company’s products is a major concern for dealers as there has
been a significant increase in the lead times. As a result dealers neither have
confidence in Caterpillar’s new forecasting system nor in the ability of the factory to
quickly gear up. This is negatively affecting the company’s reputation amongst its
dealer network.
Opportunities
Opportunities in China and India
Developing economies like China and India are experiencing annual growth of 7-8%
per annum. Infrastructure development and construction activities are rising at a fast
rate in these countries. Asia continues to be a very large growth opportunity for
Caterpillar, and it is an area in which it is focused on increasing its presence.
Increasing construction activity due to growing population
Private construction spending accounts for 78% of total construction industry
spending. It is estimated that in 2007 the worldwide construction industry market will
be worth $257 billion. Population rise will significantly impact the construction industry.
The company has a strong presence in the construction equipment market and is well
positioned to take advantage of the opportunity to grow in this segment.
Joint development and acquisition programs
Caterpillar has entered into joint development and acquisition programs for
components and purchased-finished material with certain competitors. In August
2003, the company entered into a joint venture with Eaton Corporation to provide fully

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CATERPILLAR, INC.
SWOT Analysis
integrated electric power distribution system. In January 2004, the company formed
Caterpillar Power Generation Systems in association with Solar Turbines
Incorporated, to market the products of both brands. These initiatives are aimed
primarily at reducing manufacturing costs without sacrificing competitive
differentiation. In July 2004 Cat Logistics acquired the parts business of U.K. auto
manufacturer, MG Rover, a wholly owned subsidiary of PVH. In August 2004 the
company acquired Wealdstone Engineering Ltd., one of Europe’s leading
remanufacturers of gasoline and diesel engines along with Williams Technologies, a
leading remanufacturer of automatic transmissions, torque converters, and engines
for automotive and medium and heavy duty truck applications.
Threats
Rise in raw material prices
There has been a continuous rise in the prices for key raw materials of the company,
especially metals, and these prices are expected to rise further as the global economy
improves. The increase in raw material prices will increase the company’s operating
costs, and would limit the magnitude of potential production increases and therefore
incremental earnings power.
Mining dependent on coal prices and global GDP
Demand for new equipment is highly cyclical and dependent on mineral prices. The
four major minerals produced using mining equipment are coal, copper, iron, and
gold. These four minerals account for 87% of all mines using heavy mining equipment
and for 88% of the population of large mining machines. Although, the demand for
these minerals, which is largely determined by population growth and growth of GDP,
is expected to be stable or increase in the future, there remains an element of
uncertainty.
UAW contract expiration can lead to production interruption
The six-year deal between Caterpillar and United Auto Workers (UAW) expired in
April 2004. Since early 2004 the company has been in negotiations regarding
workers’ contracts, healthcare, wages and job security. The last meeting between the
two was unsuccessful and had led to work disruptions, strikes and worker walkouts. If
the present meetings suffer the same fate as the previous then further work
disruptions can occur, which will have a negative effect on production and revenue
generation.

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CATERPILLAR, INC.
Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Caterpillar, Inc.:
Ford Motor Company
Kawasaki Heavy Industries, Ltd.
Komatsu Ltd.
Scania AB
CNH Global N.V.

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CATERPILLAR, INC.
Company View
COMPANY VIEW
The following is a statement by Jim Owens, Chairman of Caterpillar. This statement
has been taken from the company’s 2004 annual report.
2004 was a great year to be a member of the worldwide Caterpillar family! We
celebrated a series of impressive milestones - 100 years since the invention of the
track-type tractor, 75 years on the New York Stock Exchange and 50 years of
operation in Brazil, as well as the introduction of ACERT Technology into the
earthmoving machine business - and set all-time sales and revenues and profit per
share records. In a year of explosive growth and largely unanticipated global demand,
our sales increased by over $7 billion as we surpassed our $30 billion sales and
revenues goal a full two years ahead of schedule. Through it all, we maintained
product quality and grew our global leadership position. We ended the year with a
record order backlog for our larger machines - indicating continuing market strength
for 2005.
Caterpillar’s record profits have placed us in an even stronger financial position - great
news for our employees and stockholders. Our pension plans remain well-funded due
to solid investment returns and more than $600 million in contributions for the second
year in a row. Stockholders are benefiting from both higher dividends and share
repurchases. In fact, we’ve increased our dividend 10 of the last 11 years and, in
2004, repurchased almost 7 million shares. Wall Street is celebrating with us. Our
share price of $97.51 on December 31 was our highest year-end price ever - up 17
percent from 2003 year-end.
Our success in 2004 is a tribute to our people - a strong leadership team, more than
76,000 committed employees, the world’s best dealer organization and many
strategic suppliers who worked with us to overcome difficult sourcing challenges. I’m
truly grateful for all their efforts. Only because of Team Caterpillar’s tremendous
creativity, passion and sweat were we able to achieve such remarkable results.
Together we rallied around a common objective - helping our customers be more
successful working with Caterpillar than they could be with anyone else - and
positioned ourselves to take advantage of a global economy that’s emerging from a
long slumber in the industries Caterpillar serves.
MORE PREPARED FOR SUCCESS THAN EVER

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CATERPILLAR, INC.
Company View
Reflecting on Caterpillar today, I can’t think of another company in any industry that’s
better positioned to win in the global economy. Consider the key building blocks we
have in place for the future:
1. Established strength with products and services. Our current line up is the strongest
and broadest in our history. Our major product lines are recognized leaders worldwide
- #1 or #2 on every continent - and everywhere I turn, Caterpillar people are working
to make them even better. On the services side of our business, Cat Financial and Cat
Logistics are well-established growth subsidiaries. Cat Financial has provided
diversification and earnings stability since its formation in 1981. Today it’s one of the
largest captive finance companies in the world with receivables of almost $20 billion.
Cat Logistics has been generating growth of 25 percent annually in revenues from
external customers, and massive opportunities remain for creative third-party logistics
providers in this $170 billion industry. In 2004, we also identified other adjacent growth
areas where we plan to make substantial investments, including Caterpillar
Remanufacturing Services and our OEM Solutions Group.
2. Technology leadership in our industry.
Caterpillar’s investment in research and engineering is unequaled in our industry. With
hundreds of Ph.D. scientists and researchers on our team, we’ve received more than
2,500 patents in the last five years, and we continue to invest more than $4 million in
technology each working day. Nowhere is that investment paying off more than on the
engine side of our business, where growth is being fueled in large part by the success
of ACERT, our revolutionary clean diesel technology. More than 170,000 on-highway
engines featuring ACERT Technology are on the road now. They’re accumulating 36
million miles a day, delivering excellent performance and producing dramatically lower
emissions - all with comparable fuel economy to previous models. In November, we
introduced the first Cat earthmoving machine with ACERT Technology, and we’re
confident this clean diesel technology will set us apart in the off-road arena as well.
On the machine side of our business, systems integration continues to differentiate
Caterpillar products from the competition. Electrohydraulic controls, integrated
powertrain systems, global positioning and wireless communications systems, sound
reduction technology and more are coming together to improve productivity,
performance and operator comfort. These systems - and products like the SystemOne
undercarriage featured on the cover of this report - are helping our customers
increase overall job site efficiency and lower cost per ton.
3. Well-established global footprint. Our products are sold in over 200 countries, with
more than half of our sales outside the U.S. We operate nearly 300 facilities in 40

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Company View
countries on six continents, with a goal to be a cost-effective competitor in every major
currency zone. Add our 198 Cat dealers, their 1,600- plus branch stores, around
1,400 Cat Rental Stores and more than 400 FG Wilson, MaK, Perkins and Solar
distributors, and we literally blanket the four corners of the Earth. Our dealer network
in particular gives us a local presence everywhere we do business. Our after-sales
support capabilities and coverage are unmatched in our industry or, most likely, any
industry. Ultimately, all business is local - and we are positioned to compete with
"local" competitors the world over.
4. Unique set of market strengths. Caterpillar is exceptionally well-positioned by virtue
of the markets we serve - global mining, global energy (oil/gas and coal),
infrastructure development and distributed electric power, just to highlight some of the
largest. These industries were characterized by significant underinvestment in the
post-Asian crisis period of 1998-2002. Global economic growth returned to more
robust trend levels in late 2003, and we believe this worldwide recovery has legs. Real
economic growth at longer-term trend levels will require ongoing heavy investment in
these industries - a sweet spot for Caterpillar.
5. Governance and financial integrity. Maintaining uncompromisingly high ethical
standards has always been a hallmark of Caterpillar - we’ve been guided by a strong
Code of Worldwide Business Conduct since 1974. Our board has distinguished itself
as a leader in corporate governance. Its members are independent, highly qualified
and diverse, with an outstanding working rapport with management. At Caterpillar,
we’ve always been conservative in our financial accounting, and we are proud of the
strength of our balance sheet, investment grade credit rating, well-funded benefit
plans and cash flow. Our compensation programs and stock ownership requirements
clearly align executive and stockholder interests. We continue to work diligently to
provide all our stakeholders with the information to make good decisions about our
operations and the potential of our business.
MORE PASSION FOR PROCESS AND PEOPLE
In addition to these five key strengths, I believe our people and world-class 6 Sigma
deployment also distinguish Caterpillar from the crowd. What an incredible success
story 6 Sigma has been for Caterpillar! It is the way we do business - how we manage
quality, eliminate waste, reduce costs, create new products and services, develop
future leaders and help the company grow profitably. We continue to find new ways to
apply the methodology to tackle business challenges. Our leadership team is
committed to encoding 6 Sigma into Caterpillar’s "DNA" and extending its deployment
to our dealers and suppliers - more than 500 of whom have already embraced the 6

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CATERPILLAR, INC.
Company View
Sigma way of doing business. Together we are creating the industry’s best supply
chain, ready from top to bottom to meet the changing needs of those we serve.
At the heart of our business, of course, are our people. What is Caterpillar, ultimately?
We are a corporation, but corporations by themselves don’t do anything. The more
than 76,000 people who work here do. Our goal is to capture the best ideas, energy,
enthusiasm and passion of each and every one of our employees around the world -
make sure they know they’re an integral part of "Team Caterpillar" - and together drive
both rewarding and profitable results. That’s why people-related issues continue to be
our number-one critical success factor, as we work to build a culture where everyone’s
contribution is valued, focus on diversity in our workforce, emphasize safety in all we
do and maintain competitive wages and benefits.
MORE OPPORTUNITIES AND CHALLENGES AHEAD
With these building blocks for success in place, and with our $30 billion sales and
revenues goal accomplished, later this year we’ll roll out new vision and mission
statements for the next decade, along with a set of critical success factors to drive
their realization. Our focus will be on profit per share growth, which enables us to
invest in research and development for leading-edge products, make capital
improvements for modern and productive operations, offer competitive compensation
and grow dividends for our stockholders - everything that makes Caterpillar a great
employer, business partner and investment. Our goal is to realize profit per share
growth that is stronger than other manufacturers’ - and again, I believe we’re well-
positioned to realize this ambition.
Looking to the future, I’m excited about the challenges our global industries present
because I know Caterpillar is ready! We’re heading into 2005 with the right products
and services, the right technology, the right strategy and, most important, the right
people. Our talented team is working together to make Caterpillar a great company for
the future. We also thank our stockholders for their investments and the vote of
confidence that represents. We’re committed to being good stewards of your funds.
The idea of building a great company was the theme of our annual report in 2003. It’s
what we aspire to be. That’s why I believe this year’s theme of "Doing More" is so
appropriate - not just for this year in which we all did so much more, but as a blueprint
for our future. To build a great company we must always do more - accept more
challenges, pursue more opportunities, work for more results and deliver more value
to all our stakeholders. We must build on our positives and keep driving for excellence
in each area of our business. Thanks to the efforts of Caterpillar people around the

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CATERPILLAR, INC.
Company View
world, we are working together to transform this very good company into a truly great
one - a journey we realize is never-ending.

25. Caterpillar, Inc.
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CATERPILLAR, INC.
Locations and Subsidiaries
LOCATIONS AND SUBSIDIARIES
Head Office
Caterpillar, Inc.
100 North East Adams Street
Peoria
IL 61629
United States
P: 1 309 675 1000
F: 1 309 675 1182
www.cat.com
Other Locations and Subsidiaries
Cat Financial Services Corporation
2120 West End Avenue
Nashville
TN 37203-0001
United States
P: 1 615 341 1000
Solar Turbines Incorporated
2200 Pacific Highway
San Diego
CA 92138
United States
P: 1 619 544 5000
esolar.cat.com
Caterpillar Logistics Services Inc
500 N. Morton Ave
Morton
IL 61550-0474
United States
P: 1 309 266 4409
F: 1 309 266 4420
www.catlogistics.com
Mitsubishi Caterpillar Forklift America Inc
2121 W. Sam Houston Pkwy North
Houston
North Houston
TX 77043-2421
United States
P: 1 713 365 1000
F: 1 713 365 1888
www.mcfa.com