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CATERPILLAR INC. 2013 YEAR IN REVIEW
2
“ The strengths we share – our common ground – remain Our Values in Action.”
DOUG OBERHELMAN, CHAIRMAN & CEO
From Left to Right: Jim Buda, Law and Public Policy; Steve Wunning, Resource Industries; Stu Levenick, Customer & Dealer Support; Doug Oberhelman, Chairman & CEO;
Brad Halverson, Financial Products & Corporate Services; Jim Umpleby, Energy & Power Systems; Dave Bozeman, Caterpillar Enterprise System Group; Ed Rapp,
Construction Industries
Chairman’s Message
In uncertain times, it is the shared strengths and resolve of a community that determine the course of history. This is true
whether it be a family, a country or a company. And for us, the people of Caterpillar, the strengths we share – our common
ground – remain Our Values in Action.
Certainly, we’ll all remember 2013 as a challenging year. But it was a
time of solid accomplishments as well, and right at the top of the list is
the performance by our people resulting in the strongest balance sheet
we’ve had in more than 25 years. Despite a sales and revenues decline
of about $10 billion, we set a record for Machinery and Power Systems
(M&PS) operating cash fl ow, strengthened our balance sheet and
improved our overall market position for machines, including strong
gains for excavators in China – all outstanding successes. But getting
here wasn’t fun. And it wasn’t easy, especially for our employees who
endured an incredibly tough year.
The good news is our performance in 2013 demonstrated the balance in
our business that helped us withstand divergent economic cycles. In a
year overshadowed by a substantial decline in sales of relatively high
margin mining products, our largest segment, Power Systems, delivered
profi t near its 2012 record despite lower sales. In addition, our Financial
Products segment achieved a record profi t. So while we saw a top
line sales decline in 2013 – and nobody likes that, especially me – the
performance of our people and the balance in our business helped us
reduce the profi t impact of lower sales.
So what does our 2013 performance mean? Well, a strong balance
sheet means we can weather a storm and grow the company, and of
course it affords returns to shareholders. We recently announced a new
$10 billion stock repurchase program – an indicator of our confi dence in
the long-term future of Caterpillar. Our increased market share around
the world results in thousands more machines in the fi eld, affording our
dealer network the opportunity to sell more parts and service. That’s
a tremendous accomplishment.