Analysis of Caterpillar Inc.

Brief History of Caterpillar 1925 Daniel Best and Benjamin Holt form Caterpillar. 1950 Company begins international expansion with the establishment of Caterpillar Tractor Co. Ltd. in Great Britain. 1953 Company solidifies its commitment to engine market with creation of separate division for engine production. 1970s Company introduces a broad range of new products that would become the forerunners of today’s best-selling product lines. 1987 $ 1.8 billion plant modernization program launched. 1990s CAT reorganizes into closer-to-the-customer business units. Profits top 1 …

…produce, their profits are smaller and consequently they will reduce their purchases of new machines and equipment. Exchange Rates Exchange rates will hurt company sales when the dollar appreciates relative to other currencies. When this happens the value of the dollar increases, and consequently U.S. goods become more expensive to foreign countries. If exchange rates raise and stay at high levels for extended periods of time, company export sales would be reduced. ------------------------------------------------------------------------ **Bibliography**