Caterpillar Net Worth: Digging Into The Company’s Value

As a global leader in manufacturing heavy industrial equipment, Caterpillar has helped shape the mining, energy, and construction industries through its innovative machinery and technology. As of November 2024, Caterpillar’s net worth is $197.94 billion, underscoring its importance in construction and mining equipment innovation.

We gathered insights from multiple authoritative sources to offer an in-depth look at Caterpillar’s financial position and growth journey. Keep reading to explore the company’s major milestones, revenue performance over the years, challenges, and more.

What is Caterpillar’s Net Worth?

Caterpillar’s market capitalization, also known as market cap, is $197.94 billion. The company’s market cap history goes back to Caterpillar’s IPO in 1925 when it was listed on the Pacific Stock Exchange, now the NYSE Arca, Inc. It then changed to a different exchange, where its primary exchange listing was on the NYSE in December 2, 1929, when 400 shares were traded with 1,882,240 shares outstanding.

In 1929 a share of Caterpillar Tractor Company was $56.25. A share bought in 1929 would be worth around $70,000 today, accounting for the share price growth, stock splits and dividends over the years.

The total shareholder return has had an annual compounded growth rate of 8% since its listing in 1929. The all-time high stock closing price was $400.57 on October 11, 2024. Caterpillar releases its financial results in February, based on previous years.

Although Caterpillar’s stock took a hit at the start of 2020, like most companies due to the pandemic, it saw a steady increase in stock prices and market cap. The healthy recovery was down to solid pricing and consistent demand for heavy equipment in the mining sector. With a 22% increase in sales in Q3 2023, the company’s values rallied towards the end of the year.

Caterpillar Revenue

Over the past 20 years, Caterpillar’s revenue has ultimately trended upward. However, there have been some significant ups and downs along the way. In 2004, revenue was $30.3 billion, and climbed steadily reaching a high of $51.3 billion in 2008. In 2009, its revenue dropped to $32.4 billion due to the global economic crisis, according to its 2009 annual report filed with the SEC. The company’s sales and revenues decreased 37% from 2008 to 2009 and profit decreased by 75%.

Revenue rebounded in 2010 to $42.6 billion, a 31% increase from 2009. According to Caterpillar’s 2010 Year in Review, this was thanks to global economic recovery and higher machine demand in construction industries than in 2009 from developed countries. Revenue then jumped to a new high of $60.1 billion in 2011, an all-time record, due to higher sales volume, especially in new construction and mining equipment and aftermarket parts improvements.

After increasing again to $65.9 billion in 2012, revenue fell to $55.6 billion in 2013, down 16% from the previous year. This decline, according to Caterpillar’s financial report, was the result of a drop in sales of new mining equipment and machinery.

In 2016, revenue dropped to $38.5 billion, its lowest point since 2009. The company said it was due to $43 million in returned or repossessed equipment and a decrease in global mining and energy production. It announced plans to lay off between 4,000 and 5,000 workers.

2020 saw another dip in revenue, dropping to $41.75 billion, due to lower end-user demand for equipment and services and a strained supply chain thanks to, as speculated by Caterpillar, the COVID-19 pandemic and the resulting global recession.

After 2020, Caterpillar’s revenue steadily increased as the global economy began to come back, reaching an all-time high in 2023 of $67.06 billion due to higher sales volume in a healthier economy.

Here’s a look at Caterpillar’s revenue over the past 10 years:

Caterpillar Dividend History

Caterpillar has been paying a cash dividend every year since its founding. The current quarterly dividend is $1.41. With an increasing dividend in the last 30 payouts, it is classed as a dividend aristocrat.

Caterpillar has had many stock buybacks over the years, the most recent being $4.975 billion in 2023. The company has had four stock splits, the most recent being nearly 20 years ago on July 14th, 2005 of 2:1.

Who Owns Caterpillar?

Caterpillar is a publicly traded company and thus owned by various shareholders, including Vanguard Group Inc. (9.59%), State Street Corporation (7.55%), and BlackRock Inc. Its stock is traded on the New York Stock Exchange under the ticker symbol CAT.

The company was founded in 1925 through a merger between The Holt Manufacturing Company and the C.L. Best Tractor Co.

Benjamin Holt is known for inventing the caterpillar tractor design when, in 1904, he was helping Caterpillar farmers work with too-soft soil. His solution was to replace the rear wheels from a Holt steam tractor with a pair of tracks. When they were testing it in 1905, a photographer commented that it looked like a crawling caterpillar.

Who is the Caterpillar CEO?

The CEO of Caterpillar Inc. is James Umpleby. He is also the chairman of the board of directors. He has been the CEO since January 1, 2017. The following table shows the history of CEOs in the company. Lee Morgan was the first official CEO in 1977.

During Doug Oberhelman’s tenure as CEO, Caterpillar faced controversy when it acquired Chinese mining equipment company Zhengzhou Siwei Mechanical & Electrical Manufacturing Co. Soon after the acquisition, Caterpillar discovered fraudulent accounting practices in the company. He eventually left the company at the end of 2016 under a cloud of four years of falling sales.

Additionally, under James Umpleby’s leadership in 2017, federal agents raided Caterpillar headquarters to investigate illegal taxes. Umpleby maintained that Caterpillar had not made any attempt to commit fraud. We’ll cover this in more detail later on.

Caterpillar’s Company History

Caterpillar runs operations across three primary business areas through 17 brands:

• Construction industries
• Resource industries
• Energy and transportation

Caterpillar is headquartered in Irving, Texas, and has a presence across all continents. The company employs over 113,00 people and has Cat Dealers based in 156 companies that reach into more than 190 national markets. Here’s how the company achieved international success.

1925-1930: A Promising Beginning

In 1925, the Holt Manufacturing Company and the C.L. Best Tractor Co. merged to create Caterpillar Tractor Co., with C.L. Best appointed as the company’s first chairman. Two years later, in 1927, Caterpillar introduced its first original design, the Model Twenty Tractor, followed in 1928 by its first acquisition, the Russell Grader Manufacturing Company, purchased for an undisclosed amount.

1931-1940: Innovation and Construction

In 1931, Caterpillar Inc. made a significant advance by producing its first diesel engine, the D9900, investing over $1 million into research and development. This engine, initially powering the Caterpillar Sixty track-type tractor, solidified Caterpillar’s reputation as a leader in diesel and natural gas technology.

That same year, to improve visibility on construction sites, Caterpillar switched its machinery color from gray to “hi-way yellow”, establishing the iconic look associated with Caterpillar equipment.

By 1934, Caterpillar launched the Model Twenty-Two track-type tractor, which was available in 40-inch and 50-inch gauges, priced at $1,450 and $1,500, respectively. Caterpillar’s track-type tractors contributed to major projects in construction industries, including the Hoover Dam in 1936 and the Golden Gate Bridge in 1937.

1941-1968: Global War and Global Growth

During World War II, Caterpillar equipment played a critical role in supporting the Allies’ war machine. By 1944, Caterpillar machines had helped construct over 70,000 miles of highways across the US and in 1945, the company introduced its first dozer blade.

Three years later, in 1948, Caterpillar machinery would support the construction of the Bhakra Dam in India.

In 1950, Caterpillar established its first overseas subsidiary, Caterpillar Tractor Co. Ltd., in England. Two years later, the company introduced its first integrated track loader.

In 1955, Caterpillar provided specialized equipment for Operation Deep Freeze in Antarctica, marking the company’s first presence on all seven continents. Caterpillar’s product innovation continued with the launch of its first construction dump truck, the 769 off-highway truck, in 1962. That same year, Caterpillar equipment also aided in widening sections of the Panama Canal.

1969-1997: Caterpillar in Space and South America

In 1969, Caterpillar engines powered the Apollo 11 mission, which landed the first humans on the moon.

1970 marked the first year that sales of Caterpillar were higher outside of the US than in the US. In 1972, the company launched its first hydraulic excavator, the 225, followed in 1973 by the opening of its remanufacturing plant in Bettendorf, Iowa.

Caterpillar introduced the powerful D10 track-type tractor in 1977 and transitioned from “hi-way yellow” to “Caterpillar yellow” in 1979.

Cat Financial, established in 1981, is the financial products segment of the business. This offset is tailored for Caterpillar Inc. customers and dealers. It provides retail and wholesale financing options and financial products, for Cat machinery and engines, industrial gas turbines, natural gas engines, and other related equipment and marine vessels.

It also provides product protection and financing for a range of Cat machinery and equipment. This helps clients by streamlining the process of purchasing, leasing, and servicing equipment, aiding in the management of cash flow and protecting their investments throughout the lifecycle of the equipment.

Caterpillar’s growth continued through acquisitions and innovations. In 1981, it acquired Solar Turbines, a maker of industrial gas turbines for $505 million. Caterpillar then contributed to the Yacyretá Dam project in Paraguay and Argentina in 1983, and introduced its first backhoe loader, the 416, in 1985. The D11 track-type tractor came out in 1986, and in 1994, Caterpillar machinery helped construct Kansai International Airport in Osaka, Japan.

1998-2009: Acquisitions and Growth

Four years later, in 1998, Caterpillar launched the 797, the largest mechanically driven mining truck at the time, along with a line of compact equipment for construction industries. That same year, it acquired Varity Perkins for $1.3 billion, establishing Caterpillar as a global leader in off-highway diesel engine production.

In 2001, Caterpillar introduced its ACERT technology, and in 2006, it acquired Progress Rail Services, Inc., for about $800 million, assuming an additional $200 million in debt. The company launched its first electrically driven track-type tractor, the D7E, in 2008, the same year it acquired the remaining shares of Shandong SEM Machinery Co., Ltd., in China, as it had purchased a partial stake in 2005.

2010-Present: Growth and Diversity

Caterpillar continued its growth with the acquisition of Electro-Motive Diesel — a brand of diesel-electric locomotives, in 2010, followed by Bucyrus International Inc. and MWM GmbH in 2011. Jim Umpleby became CEO in 2017, and in 2018, Caterpillar introduced the CAT D6 XE, the first high-drive electric drive dozer.

Caterpillar published its first Diversity and Inclusion Report in 2021.

Caterpillar Controversies

Caterpillar Inc has grown so fast that it comes as no surprise that it has its fair share of controversies.

Caterpillar and Palestine

In 2007 according to Amnesty International, Caterpillar Inc. was implicated in human rights violations in the Occupied Palestinian Territories (OPT) due to Israeli authorities and settlers using its equipment in demolitions, evictions, and the destruction of agricultural land.

Amnesty International (AI) raised concerns about Caterpillar’s D9 bulldozers, which have been used in operations like the 2009 Operation Cast Lead in Gaza, which severely damaged homes and displaced many Palestinians. Caterpillar’s machinery has also been linked to casualties, including US citizen Rachel Corrie’s 2003 death while protesting a demolition in Gaza.

A particularly horrifying CNN report included testimony from an Israeli Defense Force (IDF) soldier who detailed how he ran over hundreds of Palestinians, dead and alive, with his bulldozer. The disturbing report, which mostly focused on PTSD in IDF soldiers and not the carnage in Gaza, revealed that the carnage he helped inflict was so terrible to witness that he went vegan.

A Norwegian pension fund divested from Caterpillar in 2024 due to concerns that its machinery was being used by the Israeli Defence Force in Gaza. Shares worth $69 million were sold as part of the decision. Regional offices have also faced protests during the 2023-24 Israeli military action.

@sudamamalove3

March 13 2024 pr0test at Caterpillar Tucson Regional Offices

♬ suara asli – Palestine – user50913885826

Despite temporarily suspending D9 bulldozer sales to Israel, Caterpillar states it cannot control how customers use its equipment but expects adherence to human rights norms.

Caterpillar and the EPA

In 2011, Caterpillar Inc. reached a settlement with the EPA and DOJ over Clean Air Act violations related to shipping over 590,000 diesel engines without proper emissions controls and not meeting emission reporting and labeling requirements.

The settlement included a $2.55 million penalty, with $2.04 million going to the US government and $510,000 to California. Caterpillar recalled engines that didn’t meet environmental standards, installed correct emissions devices, and reprogrammed fuel settings.

Additionally, Caterpillar agreed to retire emissions credits that it had used to offset excess pollutants from these engines, reducing nitrogen oxides (NOx) and particulate matter (PM), which have adverse health and environmental impacts.

Caterpillar and Chinese Acquisition

Caterpillar faced a major setback involving its acquisition of the Chinese mining equipment company Zhengzhou Siwei Mechanical & Electrical Manufacturing Coin 2012. Just six months after purchasing Siwei as part of a $700 million deal, Caterpillar found the company was hiding fraudulent accounting.

The issues included inflated sales, understated costs, and falsified documentation, leading Caterpillar to write down approximately $580 million — over 80% of Siwei’s value.

Oberhelman, the CEO at the time, took responsibility for making a deal with a company involved in fraud, acknowledging that it happened “on my watch” and stating that “the buck stops at my desk”.

Caterpillar acted quickly, removing Siwei’s senior managers implicated in the misconduct and replacing them with trusted Caterpillar personnel. The fallout also prompted the departure of Luis de Leon, Caterpillar’s Vice President of the company’s mining and products division, who had also been COO for four years.

The company had to write off $580 million in a goodwill impairment, with stock dropping 1.5% on the announcement.

Caterpillar and the Department of Labor

A news release from the US Department of Labor states that Caterpillar Inc. agreed to pay $800,000 in back wages and interest to 60 Black applicants affected by alleged racial discrimination in hiring at its Decatur, Illinois, facility. This was following a federal compliance review by the US Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP).

Caterpillar agreed to:

• Offer jobs to 34 of the applicants
• Revise its hiring policies to eliminate discriminatory practices
• Provide hiring process training to staff

This followed an OFCCP finding that the applicants were unlawfully denied fabrication specialist/welder positions between 2018 and 2020. The settlement aimed to ensure equal employment opportunities, especially for federal contractors like Caterpillar Inc.

Additionally, shortly after James Umpleby became CEO in 2017, Caterpillar’s headquarters and other facilities were raided by federal agents as part of a criminal investigation into alleged illegal tax workarounds.

The company was suspected of shifting revenues to offshore accounts in Switzerland and Bermuda, avoiding $2.4 billion in taxes. Umpleby expressed surprise at the raid, claiming Caterpillar had been cooperating with authorities. However, the investigation still raised questions about the company’s tax practices. Despite this, Umpleby maintained that Caterpillar operates with integrity and pledged ongoing compliance reviews.

What Can We Learn From Caterpillar?

Caterpillar Inc., a global leader in construction industries and mining machinery, offers lessons on the importance of innovation and working with new technologies. With a net worth of $197.94 billion, Caterpillar’s market position is the result of nearly a century of innovation and strategic acquisitions like the maker of industrial gas turbines, Solar Turbines and Electro-Motive Diesel, maker of natural gas engines.

On the positive side, Caterpillar’s consistent commitment to innovation has kept it a leader of transportation, power generation with diesel and natural gas, and construction industries.

From early diesel and natural gas technology development in the 1930s to electric-drive mining trucks more recently, Caterpillar Inc. has shown how investing in technology can turn a company into an industry leader. Additionally, Caterpillar’s dividends and returns highlight the value of stable, shareholder-focused growth strategies.

However, some growth choices have come at a high cost. The 2012 acquisition of the Chinese company Zhengzhou Siwei Mechanical & Electrical Manufacturing Co. led to massive losses. This mistake highlights the importance of due diligence when partnering with outside companies. Additionally, Caterpillar’s tax investigation in 2017 is a reminder that companies with global operations must rigorously assess and align tax practices with regulatory standards to avoid reputation-damaging probes.

Looking towards the future, we can learn a great deal from Caterpillar’s strategic use of AI and technology to drive innovation and keep its place as the industry’s leader. By investing in AI across its operations — from machine learning that predicts maintenance needs to AI tech that aids in data analysis — Caterpillar has been able to raise productivity and efficiency while enhancing customer support.

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