Category: NEWS

(Reuters) – Caterpillar Inc (CAT.N) on Tuesday cut its 2015 profit outlook and warned the plunge in oil prices would hurt its energy equipment business, sending shares tumbling as much as 8 percent.

The world’s largest construction and mining equipment maker also posted a lower-than-expected quarterly profit.

During the fourth quarter, Caterpillar’s energy business helped offset falling construction equipment sales and weakness in mining equipment orders due to lower copper, coal and iron ore prices.

Caterpillar said it expects only a modest improvement in the global economy in 2015.

The nearly 60 percent drop in oil prices since June will not only affect Caterpillar’s energy business, but will also hurt construction projects in oil-producing regions, the company said.

Caterpillar expects lower construction equipment sales in China in 2015 due to a weaker market. The stronger dollar should hit revenue from products sold overseas.

Chief Executive Officer Doug Oberhelman said in a statement 2015 will be “tough” for the company.

Caterpillar said it expected full-year 2015 revenues of around $50 billion, about 9 percent below the 2014 total. The company had said last October it expected 2015 revenue to be flat or slightly up versus 2014.

On a conference call, company officials said around 50 percent of the expected sales decline was directly or indirectly related to low oil prices. Chief Financial Officer Brad Halverson said that with housing starts and the construction sector expected to do well in 2015 – outside the energy sector – North America is one of “few bright spots” for Caterpillar.

How low oil prices will affect consumer sentiment, the economy and ultimately Caterpillar’s business is hard to tell at this point, executives said.

Q4 REVENUES TUMBLE

The Peoria, Illinois-based company reported fourth-quarter net profit of $757 million, down nearly 25 percent from $1.03 billion a year earlier.

Earnings per share were $1.23, compared with $1.54 a year earlier. Analysts expected $1.55 for the most recent quarter.

Revenue totaled $14.24 billion, down from $14.4 billion a year earlier, but above estimates of $14.18 billion.

Caterpillar expects full-year 2015 earnings per share of $4.60, or $4.75 excluding restructuring costs. Analysts had estimated $6.67 for the year.

During the fourth quarter, energy and transportation sales rose 11 percent to $6.2 billion, but that was not enough to offset falling mining and construction equipment sales.

Caterpillar shares fell as low as $79.16 before cutting losses to $79.40, down 7.7 percent.

(Reporting by Nick Carey; Editing by Jeffrey Benkoe and Nick Zieminski)

Sales of the Volvo FH16 Euro 6 are now under way. With up to 750 hp and 3550 Nm of torque, it retains its position as the strongest truck in the world. The first Euro 6 versions of the Volvo FH16 will be delivered in early June.

The Volvo FH16 is ideal as a tractor for heavy rigs and timber haulers, and also for fast transport assignments characterised by exceptional demands on driveability and productivity. Now the world’s most powerful series-produced truck is available with a new generation of 16-litre engines producing a choice of 750, 650 and 550 hp respectively, all conforming to Euro 6. In addition to lower emissions, the new engines also offer higher torque at low revs, a more powerful engine brake, and quieter operation.

“The Volvo FH16 with Euro 6 engine has the same high reliability, the same fuel consumption and the same power as before. But now the driver has access to maximum torque from just 900 or 950 revs a minute depending on engine version. This improved torque curve also allows customers to choose a faster rear axle ratio for best fuel efficiency,” says Astrid Drewsen, Product Manager, Drivelines at Volvo Trucks.

All the engines are equipped with Volvo’s automated transmission, I-Shift. The 550 hp version is optionally available with a manual gearbox. All the engine versions can be specified with Volvo’s VEB+ engine brake. Maximum braking effect has been raised from 425 to 470 kW at 2200 revs a minute, further improving safety and reducing wear on the wheel brakes.

In order to deliver the low NOx emissions required by Euro 6, Volvo’s engineers have used cooled EGR (Exhaust Gas Recirculation) in combination with an updated system for after-treatment of exhaust gases. A new dual-stage turbo helps power the EGR loop and also delivers the high power outputs. The engine features pilot injection. This means that a small amount of fuel is pre-injected into the cylinder, creating more uniform pressure build-up and a softer engine note.

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Fact box

Volvo FH16 for Euro 6
Equipped with the Volvo D16K550/650/750 – an in-line six-cylinder diesel engine with dual-stage turbo, overhead camshaft, four valves per cylinder and common rail injection.
Available with 750 hp (3550 Nm), 650 hp (3150 Nm) and 550 hp (2900 Nm*).
50% lower emissions of particulates (PM) and 80% lower emissions of nitrogen oxides (NOx) compared with Euro 5.
FH16 for Euro 6 is available on the European markets.
*2800 Nm with manual gearbox.

Press images and films are available in the Volvo Trucks image and film gallery at http://images.volvotrucks.com/

HOLT ProTech!® is the indisputable choice for earth moving, engines, and electrical power generation technical training. Caterpillar dealers, OEMS, TEPS, MEPS, HOLT employees, and other worldwide customers rely on HOLT ProTech! for their technical training and development needs.

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During each course at HOLT ProTech!, participants are given the opportunity to reinforce their learning, as well as gauge knowledge and proficiency through written and performance assessments. Participants also receive a written performance Report Card and a valuable, comprehensive training manual to take home at the end of each session.

With more than 300 years of combined experience, our skilled Caterpillar Certified instructors guide your technicians through a variety of classes, to teach them to service, repair, operate and maintain Caterpillar® equipment. We limit class sizes to ensure that each individual receives appropriate attention and coaching.

Classes range from one to five days in length and are available for both entry-level and advanced technicians. Registration fee includes course and materials, certificate of completion, Report Card, hotel, continental breakfasts, and lunch every day.

In 2035 web browsing will not be through the pc but it will be perfectly integrated in the retina of the human eye, and you will come to the direct access of the information only with the mind.

The books obsolete and dusty (the only reliable source that testified the real events) were consumed as fuel after the oil crisis of 2055. So if someone already found it hard to believe in the existence of the Holocaust in 40 years it will ignore existence. Texts, photos, movies and everything else more handy than the product on the paper. On 17 May 2055 is printed on the last Italian national newspaper that reports on the front page entitled: “The Right to Palace: Berlusconi is President”.

Without oil in 2075 major manufacturers of internal combustion engines have failed and some of the best known merge into one company led by the students of Harvard University.

Meanwhile, in 2095 the “CLOUD” will be developed to the point that we no longer need to remember things because we have saved in the cloud. Disappear memories and therefore the true essence that makes us different from all the other aliens in the universe. Our dog will have learned English and remember our tax code because it will find imprinted by chance in the bowl of recycled plastic. Now to remind future generations the great heroic deeds of the old ones will paint pictures will not build monuments: leave available to a profile on instagram downloadable at any time from the comfort of the space station ISS.

In 2115 Cat Com is a community of eastern builders and manufactures turbines for interplanetary propulsion. The resources on Earth have been exhausted and the extractions of raw materials will occur on Mars and Mercury. In Italy the official language is Chinese and some still believe in the construction of no-genuine parts.

Alternative Title: Study of the role of SMI in the Caterpillar supply chain
Author: Rowan, Brandon (Brandon Christopher)
Citable URI: http://hdl.handle.net/1721.1/73419
Other Contributors: Leaders for Global Operations Program.
Advisor: Daniel Whitney and Stephen Graves.
Department: Sloan School of Management.; Massachusetts Institute of Technology. Dept. of Mechanical Engineering.; Leaders for Global Operations Program.
Publisher: Massachusetts Institute of Technology
Data: 2012
Abstract:
Strategic Managed Inventory (SMI) is an inventory replenishment process deployed by Caterpillar that blends elements of Vendor Managed Inventory (VMI) and Collaborative Planning, Forecasting, and Replenishment (CPFR). The SMI process calls for Caterpillar’s suppliers to control the material replenishment process and hold inventory in strategic locations. SMI is designed such that Caterpillar and the supplier collaborate on replenishment plans and forecasts to ensure that material moves efficiently through the supply chain. The process is aimed at increasing supply chain flexibility, responsiveness and performance. This paper examines the current deployment of the SMI process in Caterpillar’s supply chain in an effort to determine how the company can go about better leveraging this capability. It proposes potential frameworks for the identification of future SMI opportunities and part suitability. It also looks at the drivers behind SMI in cost evaluation. While there are some challenges identified with the process by the study, the study concludes that the SMI process does lead to benefits for Caterpillar and its suppliers. It suggests that these benefits could be better leveraged by growing the capability slowly using the most proficient suppliers, establishing oversight for the SMI process, increasing supplier vetting, and crafting a way to gain visibility into current SMI usage.
Descrizione:
Thesis (M.B.A.)–Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)–Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Global Operations Program at MIT, 2012.Cataloged from PDF version of thesis.Includes bibliographical references (p. 75-78).

Why Caterpillar?
You know Caterpillar has a reputation for quality and value. But you may not realize that the company employs a team of dedicated professionals whose only focus is serving governmental buyers. Our governmental group has one goal: making it easier for you to invest in equipment that will make your agency more successful.

Caterpillar Chairman and CEO Doug Oberhelman participated in the Asia-Pacific Economic Cooperation (APEC) CEO Summit 2014 dialogue, “Asia Pacific Economic Integration and the Global Multilateral Trade System” on November 9 in Beijing, China.

Other dialogue participants were H.E. Michele Bachelet, President of Chile; Hon. Robert Azevedo, Director-General of the World Trade Organization; Dennis Nally, Global Chairman of PriceWaterhouseCoopers International LTD; and Frank Ning, Chairman of COFCO Corporation & ABAC Chair 2014.

Several Caterpillar leaders attended the Summit, including Ed Rapp, group president with responsibility for Construction Industries and Qihua Chen, vice president with responsibility for the China Operations Division.

Oberhelman also discussed the global economy, including potential Asia Pacific trade agreements, with CNBC.

“As long as we’re all talking about lowering trade barriers, eliminating tariffs, interchanging and being able to access each other’s markets, there will be benefits that will come out of this,” Oberhelman said.

A stronger dollar is a headwind for many U.S. exporters, but the CEO of Caterpillar, the world’s largest construction company, told CNBC that greenback strength has given his company a boost.

The U.S. dollar hit multi-year highs against several currencies last week, including a seven-year high against the Japanese yen, feeding off signs of continued recovery in the world’s largest economy.

The U.S. dollar index, which measures the greenback against a basket of major currencies, has rallied nearly 12 percent since early May and hit a high of 88.146 last week – a level not seen since June 2010.

Many U.S. exporters face the risk of losing out to competitors abroad now that their product is more expensive, but that hasn’t been the case for Caterpillar, whose performance is seen as a barometer for global economic growth.

“You have to remember that we’re a big producer in Japan also. In fact in the latest quarter, dollar strength was a little bit of a tailwind for us because we tend to produce and sell in those markets to offset costs and revenue,” CEO Doug Oberhelman said.

“We’ve set that up so we don’t have to worry about whether we are long or short yen. We’ve really offset our costs in regards to Japan it’s not been a problem against our big competitor,” he said, referring to Japanese construction and mining equipment manufacturer Komatsu.

Xi’s “realistic” speech

 
Speaking to CNBC at the Asia-Pacific Economic Cooperation in Beijing, Oberhelman also gave his perspective on China’s President Xi Jinping’s speech to chief executives ahead of the summit on Sunday, where he dismissed concerns about China’s slowing growth trajectory and said the risks to growth were “not so scary.”

Slowing growth in China has been flagged as a major headwind for Caterpillar given that China is the world’s largest construction and equipment market.

“I felt the speech was realistic… at 7 percent the economy still doubles every decade or so. It’s pretty enviable,” said Oberhelman.

On Sunday, Xi pledged $40 billion to improve trade links with other nations in the region, a move that Oberhelman’s excited about.

“We love infrastructure, so that one that should tie together some relatively poor regions that really need a lot of development and that will cause growth in those areas, so we’re all for that,” he said.

Caterpillar rebuild kits tool.