CONTENTS | SEPTEMBER 2015                      REPORT OVERVIEW:



   First Six Months 2015 Results
   Sales Analysis
   Sales Breakdowns
   Financial Products
   Caterpillar Japan
   Marketing and Distribution
   Corporate Leadership



   North American Machinery Sales
   North American Machinery Production

   Articulated Haulers (Dump Trucks)
   Rigid Haulers
   Asphalt Pavers
   Backhoe Loaders
   Compact Track Loaders
   Crawler Dozers | Loaders
   Hydraulic Excavators
   Mini Excavators
   Motor Graders
   Skid Steer Loaders
   Wheel Loaders
   Other Construction Equipment

   Engines and Power Systems
   Truck Engines
   Perkins Engines
   Parts and Service Operations
   CAT Logistics
   Caterpillar Re-manufacturing Services

Caterpillar, headquartered in Peoria, Illinois, is the leading global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. It is also a leading U.S. exporter. Caterpillar’s machinery faces global, regional and specialized global competitors.

Caterpillar management restructured its operating reporting segments since our last report. All of the tables and charts that follow reflect these changes. These four segments are: Construction Industry; Resource Industry; Energy & Transportation, and Financial Products segments. Yengst Associates monitors much of the machinery found in the first three reporting segments listed above as part of our service.

Caterpillar’s 2014 total consolidated revenues fell, for the second consecutive year, to $55.2 billion, approximately one percent below 2013 revenues. Management has taken measures to reduce inventory levels; curtail production in certain facilities; reduce employee headcount and capital expenditures and implement general austerity measures companywide over the last several years to counteract declining global demand for its goods and the resulting lower profit margins. North America, across all business segments, was the only region with improved 2014 sales. Sales increased to approximately $24.2 billion in 2014 a more than 11 percent year-over-year increase. North American sales represented 44 percent of total consolidated sales for the year. Management, in an unusual step, has set guidelines requiring dealers to hit certain sales levels in an effort to grow by improving its dealer performance.

We track Caterpillar’s operations and operating results closely as we think the company is a harbinger of the U.S. economy as a whole. Its performance and the discussion thereof have provided early substantiation of our forecasts and observations about the global and North American economies over the last several years. Once again, Caterpillar’s 2014 and first half 2015 results confirm and support some of our observations; particularly the dire state of the mining and gas industries and improved demand in North America for smaller construction machinery. Caterpillar management expects modest growth in the U.S. and deteriorating conditions in the rest of the world’s economy in 2015. It expects company sales to decline further due to continued weakness in mineral commodity prices, for example copper, oil, coal, and iron ore. The stronger U.S. dollar and devalued Chinese renminbi will also negatively impact 2015 sales. American goods are more expensive which translates to fewer exports.