When I think of the scope and breadth of Caterpillar, I know everyone has to pull in the same direction every day to get done what we need to get done. It’s a huge, huge undertaking; that’s why a global team is so important. We have a great team. It’s the best in the industry. Our team delivered higher profit per share in 2014; it increased to $5.88 from $5.75 in 2013 and, excluding restructuring costs, it improved even more – from $5.97 in 2013 to $6.38 in 2014.

We had better profit per share even though sales and revenues for the year were down slightly – from $55.7 billion in 2013 to $55.2 billion in 2014. We had our fourth consecutive year of market share improvement in 2014. Safety and quality also improved. Operating cash flow was the third highest in our history. We ended the year with a strong balance sheet and rewarded our stockholders with $4.2 billion in stock repurchases. Our Energy & Transportation segment had another great year in 2014 with record sales and profit. While sales in our Construction Industries segment improved modestly, profit improved over 60 percent. Unfortunately, continuing weakness in the mining industry led to lower sales for Resource Industries. We’re expecting a tough year in 2015, led by the dramatic drop in the price of oil, which occurred over the second half of 2014. While lower oil prices may be positive for the overall world economy and help support infrastructure and construction spending down the road, in the short term it will
likely be a net negative for our business. But that doesn’t deter our team. We’re doing the things we need to do to keep Caterpillar strong.

We’ve done so many things that demonstrate how enthusiasm and teamwork are very alive and well at Caterpillar. We continued to roll out our Tier 4 machines and we’ve received many compliments from our customers and dealers about high quality, fuel economy and operator efficiency. The development and rollout of Tier 4 has been one of the best team efforts in Caterpillar’s history. And I know that innovation is continuing. The post-Tier 4 products that will come out in the future are going to raise the bar even higher. Since I became CEO in 2010, I’ve spent countless, enjoyable hours visiting customers and job sites around the world, from landfills to surface and underground mines, to rail yards and dockyards. Cat dealers are with customers all of the time, and when a Caterpillar executive, engineer or product manager is also there, customers really open up and tell us about their business. They tell us what they need, what we’re doing right and what we need to improve.

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