Caterpillar drops 28% sales in its transportation business in 4Q20
Caterpillar Inc. (CAT) reported that it recorded a 28% year-on-year reduction in sales of its transportation business in the fourth quarter of 2020, to $ 1.035 billion.
In relation to this result, the company argued that sales decreased in the rail area, due to lower rail services and locomotive deliveries, mainly in North America.
CAT’s maritime sales were also lower.
Firstly, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
Above all, the company operates through its three main segments: Construction Industries, Resource Industries, and Energy & Transportation.
In addition, Caterpillar provides financing and related services through its Financial Products segment.
Caterpillar
The company is a leading American exporter.
Through a global network of independent distributors and direct sales of certain products, the company creates long-term relationships with its customers.
Products and services
The Power & Transportation segment supports customers in oil and gas, power generation, marine, rail, and industrial applications, including Cat machines.
The product and service portfolio includes reciprocating engines, generator sets, marine propulsion systems, gas turbines and turbine-related services.
Moreover, they include re-manufacturing of Caterpillar engines and components and re-manufacturing services for other companies, diesel-electric locomotives and other rail-related products and services, as well as on-highway truck product support for North America.
Competition
In general, the competitive environment for reciprocating engines in electric, industrial and oil, marine and gas power generation systems, along with turbines in electric power and oil and gas generation, consists of a few larger global competitors that compete in a variety of markets that Caterpillar serves.
At the same time, a substantial number of smaller companies compete on a range of products of limited size, a geographic region and/or an application.
Top global competitors include Cummins Inc., Deutz AG, INNIO, Rolls-Royce Power Systems, and Wärtsilä Corp.
Other competitors, such as Fiat Industrial SpA (CNHI), GE Power, Kawasaki Heavy Industries Energy System & Plant Engineering, MAN Energy Solutions (VW), Mitsubishi Heavy Industries Ltd., Siemens Power and Gas, Volvo Penta AB, Weichai Power Co., Ltd. and other emerging market competitors are involved in certain markets in which Caterpillar competes.
An additional set of competitors, including Aggreko plc, Baker Hughes Co., Generac Holdings, Kohler Power Systems.
In addition, in rail-related businesses, Caterpillar’s global competitors include: Alstom SA, Bombardier Transportation, CRRC Corp., LTD., The Greenbrier Companies, Siemens Mobility, Voestalpine AG, Vossloh AG, and Wabtec Freight.
Caterpillar olso competes with other companies in a more limited range of products, services and / or geographic regions.
