History of Caterpillar Inc.
The most important men in the history of Caterpillar International were Benjamin Holt and Daniel Best. These men conducted separate experiments in 1890 using different steam engines and tractors. Their mission was to produce a machine suitable for farming. By 1904, Benjamin Holt built and tested a steam-powered tractor. It was used for cultivation. Holt continued his experiments, which lead to the production of a gas-powered tractor in 1906. It is worthy to note that Holt’s tractors were used during World War I. In 1925, Benjamin Holt and Daniel Best, the two important men in the production of steam and gas-powered tractors, formed a pact. They merged their companies to form Caterpillar Tractor Corporations. The production of steam-powered tractors increased due to high demand. By 1931, the company produced a diesel-powered tractor. The company gave room for expansion within the production line. A special M4 tank was produced in 1942; the production was made possible with the support of the American government. The M4 tank was used for war purposes. Due to shortages in foreign exchanges and customer’s satisfaction, Caterpillar Tractor Corporation established a branch in Britain. This was one of many offices established worldwide. The production line expanded by 1953, with regional sales increasing by 30 percent. The company achieved another milestone by closing a partnership deal with Mitsubishi Corporation in 1963.
The company reduced its workforce from 1981 to 1983 due to the recession. Caterpillar Tractor Corporation established a leasing department to assist customers with financial difficulties. The company’s metamorphosis took another dimension in 1963. The company changed its name to Caterpillar International. This explained the need for diversity and international distribution. The company established a giant plant in 1987 to restructure its production department. The restructuring was formally launched in 1990, giving way to the mass redeployment of staff and operational heads. By 1998, Caterpillar International became the largest truck producing company. The company opened its regional office in Arizona in the same year. Capillary internationally celebrated its achievements in 2000. The achievements of Benjamin Holt earned him the induction into the Inventors Hall of Fame in 2006. In the same year, Caterpillar International established a subsidiary of its logistics service in Shanghai province
Products and services
Caterpillar Inc. produces different products to satisfy its customers. The products can be placed into three categories, namely; Equipment, Power Systems, and attachments.
Equipment
- Articulated trucks
- Asphalt pavers
- Backhoe loaders
- Cold planers
- Compact track loaders
- Multi-terrain loaders
- Compactors
- Dozers
- Draglines
- Drills
- Electric rope shovels
- Excavators
- Feller butchers
- Forest machines
- Forwarders
- Harvesters
- High wall miners
- Off-highway trucks
- On-highway trucks
- Pipelayers
- Road reclaims
- Motor graders
Power systems
- Electric power generation
- Industrial/OEM
- Marine power systems
- Oil & gas solutions
Attachments
- Augers
- Brush cutters
- Buckets-backhoe front
- Buckets-compact wheel loader
- Brooms
- Cold planers
- Compactors
- Couple-backhoe rear
- Couplers-excavator
- Couplers-loader
- Forks-compact wheel loader
- Forks loader
- Forks-Tele handler
- Grapples
- Hammers
- Harvester heads
- Material handling arms
- Mulcher
- Saws
- Rippers
- Sectional snow push
- Shears
- Rakes
- Pulverizers
- Snow-blowers
- Stump grinders
- Thumbs
- Tillers
- Trenchers
- Truss brooms
- Winches
- December’s
- Felling heads
The workforce at Caterpillar Inc. is estimated at 94 813. 50,290 work outside America.
Income statements for Caterpillar Inc. December 2012
- Sales of machinery and power systems = 95.74
- Revenues of financial products= 4.26
- Sales and revenues= 100%
- Gross profit= 27.36%
- Selling, general, and administrative expenses= -8.99
- Research and development expenses= -3.74
- Goodwill impairment charge= -0.88
- Other operating income= -0.74
- Operating profit
- Interest expense excluding financial products= -0.71
- Investment and interest income= 0.15
Company size
Caterpillar Inc. is ranked number one in the production of engines, electric motors, and construction materials. The equity share of the company exceeds US$90 billion. The company manages different company lines across America. The revenue of Caterpillar Inc. exceeds US$30 billion annually. Its headquarters are in Illinois and Peoria. The company’s diversity includes the production of electronics, financial products, agricultural products, and general services.
Warranty is a formal or informal agreement signed by the seller and buyer of a particular product. An agreement signed during the purchase of a product is called a formal warranty. The product is placed under close observation by the seller and the buyer. If the machine fails to work effectively during the stipulated time within the agreement, the seller will provide compensation, either monetary or product replacement.
Caterpillar Inc. provides warranties for its products and services. The reputation of the company positions its sales and products in the spotlight—the warranties for its product range from six months to one and a half years of purchase. The agreement between the buyer and seller provide an agreement of each sale. For example, the regional sales office in France and Germany extended the duration of its warranty from six months to one and a half years. The company changed its warranty policy to reflect customers’ feedback, quality control, and market trends. The extension of the warranty covers all products and services sold or rendered after July 1 2012. No extra charge is required for the extension of time. Services rendered by Caterpillar Inc. also have warranties. It became necessary because the reason for the repair may not be achieved after completion. Leased and rented equipment has a compensation plan. Reimbursement programs are used to compensate customers who provided genuine error logs while using Caterpillar’s products.
