Slowing Truck Market Won't Hurt Cat's Growth Plans
March 13, 2000
Slowing heavy truck sales won't stifle Caterpillar's plans to double its engine sales to $13.6 billion in the next ten years and grab Cummins Engine's number one market share, according to a recent report in the Wall Street Journal.
The heavy truck market is a big one for Caterpillar, but only accounts for one-fourth of the company's $6.85 billion engine sales last year. Other markets have been growing faster. Example: Caterpillar's power-generation sales have gone up 20% a year for the past five years and now account for one-forth of sales.
Through acquisition, the company is diversifying into other diesel engine markets. In 1996 it bought Germany's MaK manufacturing plants which make diesel engines for ships. In 1998 it got into the compact-machinery market with the purchase of Britain's Perkins Engines.
Caterpillar Chairman and CEO Glen Barton says sales of non-truck engines should offset any decline in truck engine sales this year.