Summary
Caterpillar Inc. (CAT) presents its 2014 annual report, highlighting its position as a global leader in manufacturing construction and mining equipment, engines, and industrial gas turbines. The company operates across key segments including Resource Industries, Construction Industries, and Energy & Transportation, supported by its Financial Products segment. Despite a substantial global presence and diverse product offerings, Caterpillar faces significant risks tied to global economic conditions, cyclical demand in its served industries (particularly mining and construction), commodity price volatility, and fluctuating government policies. The company emphasizes its ongoing investment in research and development, particularly for Tier 4 Final emission compliance, and its commitment to adapting product lines for evolving market demands in both developed and developing economies. Investors should note the company's extensive dealer network and its reliance on this network for sales and service, as well as the financial products offered through Cat Financial.
Financial Highlights
50 data points| Revenue | $55.18B |
| Cost of Revenue | $40.72B |
| Gross Profit | $14.47B |
| R&D Expenses | $2.38B |
| SG&A Expenses | $6.53B |
| Operating Expenses | $51.87B |
| Operating Income | $3.31B |
| Net Income | $2.45B |
| EPS (Basic) | $3.97 |
| EPS (Diluted) | $3.90 |
| Shares Outstanding (Basic) | 617.20M |
| Shares Outstanding (Diluted) | 628.90M |
Key Highlights
- 1Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines, with 2014 sales and revenues of $55.184 billion.
- 2The company operates through three principal product segments: Resource Industries, Construction Industries, and Energy & Transportation, complemented by a Financial Products segment.
- 3Significant R&D investment is focused on Tier 4 Final emission compliance for construction machinery, aiming to provide a competitive advantage.
- 4Customer demand for construction machinery has shifted towards developing economies, prompting differentiated product offerings like the SEM brand.
- 5The company maintains a strong global presence with a network of 177 independent dealers in 182 countries.
- 6Caterpillar's Financial Products segment, primarily Cat Financial, provides financing and related services to support Caterpillar product sales.
- 7The order backlog stood at approximately $17.3 billion at year-end 2014, a slight decrease from the previous year, with declines in Resource Industries partially offset by increases in Energy & Transportation.