Caterpillar 2010 Annual Report Download - page 2

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CHAIRMAN’S MESSAGE
THINK LIKE AN OWNER
Throughout my career, whenever I’ve taken on a new job,
I’ve really had to learn as I go. Most people probably
have that same experience because there usually isn’t
time for a lengthy transition – your boss shows you
to your new desk and away you go. But this year, as
I started my new job – my dream job – as Chairman and
CEO of Caterpillar, I did have the benefit of a smooth
and carefully planned transition.
Jim Owens designed a plan that allowed me to focus on creating our new strategy
while he kept the day-to-day operations under control. For six months, I led a
diverse group of Caterpillar leaders as we took a critical, in-depth look at our
business and laid out our new Enterprise Strategy to guide Caterpillar from 2010 to
2015. Jim kept the team focused on finishing strong on our 2010 goals, while I worked
with our leaders to create and teach our new strategy to employees, dealers and
suppliers. It couldn’t have worked out better!
Team Caterpillar Delivers
2010 proved to be exciting. While we faced challenges, including continued uncertainty in the global economy, our team
rolled up their sleeves and delivered. Sales and Revenues were $42.588 billion, an increase of 31 percent from 2009, and our
profit per share of $4.15 was up from $1.43 in 2009. We had good news worldwide – and after the pain of the past couple of
years, it feels pretty good! I can’t say enough about our team as they delivered these outstanding results in the face of not
only continued external uncertainty, but also some significant internal changes.
First, we reorganized into strategic businesses, which will give group presidents direct profit and loss responsibility for
their parts of the business, as well as end-to-end accountability for the products and services in their organizations. These
changes signal a change in the way we think about Caterpillar, the way we serve customers and the speed with which we
respond to our markets.
Second, we rolled out a new Enterprise Strategy that builds on the foundation of Our Values in Action, keeps us focused on
customers and renews our commitment to our Business Model. We win by delivering valued, quality products, services
and solutions to our customers that provide the lowest total owning lifecycle costs. This, along with our unmatched
customer support, creates the largest field population, highest customer loyalty and attractive profitability throughout the
business cycle. Our leaders did a great job teaching our new strategy not only to our employees, but also to our dealers
and suppliers who are critical to our success. Leadership and personal accountability are a big part of our new strategy,
and taking responsibility for helping everyone learn, understand and internalize the strategy was a great place to start.
I could not be more pleased with how our team has already responded. We launched a new leadership development
program. We are acting on ideas from suppliers as we have the opportunity to add value for our customers at every level
of the supply chain. We are taking costs out of products and adding in value. And we are beginning to change the way
we work, so we are faster and more responsive.
Third, we made major announcements about new facilities and capacity expansion around the world including three
big acquisitions that will profoundly change our company – Electro-Motive Diesel, Inc., MWM Holding GmbH and Bucyrus
International, Inc. All of these deals will help us take our company to the next level, expand our business in ways that
make sense and serve customers like never before.
2010 YEAR IN REVIEW
Doug Oberhelman
Chairman and CEO