Big
Challenge
2008 Annual Report2

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

This is our big challenge: How do we continue tocompete in a turbulent global marketplace?
This is our answer: By continuing to build a truly global Caterpillar.
By leveraging our deep presence in the industries that support
global progress. By offering a broad and balanced mix of leading
technologies, products and services. And most importantly, by
pursuing next-level performance across our business while taking
our customers’ view in everything we do.

On the cover:
A Cat D9R track-type tractor working
on a 2,400-kilometer rail line
in Saudi Arabia’s Nafud Desert.
Story on page 13.

This document is available in electronic format only.
To navigate the document:›› Use the navigation at the top of each page to jump tosections or use the page forward /back arrows›› Click on the table of contents (page 3)›› Use the arrow keys on your keyboard›› Left click to move to the next page, right click to moveto the previous page (in full-screen mode only)›› Rollover      for more information

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Table of Contents

04

08Powering Oil and Gas

Global Supply Chain
Transformation

Russia and worldwide

U.S. and worldwide

Industry Leadership,
New Partnership

Westminster, Colorado, U.S.

06

15

22

Expanding Worldwide
Port Capacity

Cat Precision Equals Safety
Skallingen Beach, Denmark

China’s ports and waterways

05

Runways for Economic Growth
Chicago, Illinois, U.S.

21

A 360° View of Value10

Münich, Germany

09

Productivity Gold in
the Mining Industry

Big Future in India

Elko, Nevada, U.S.

Across India

17

Cat Certified Used:
Big Demand, Big Value

24

Building CPS Momentum
Torreon, Mexico, and worldwide

13

Guayaquil, Ecuador

19

Safeguarding Venice
Venice, Italy

Performing in the Saudi Sand
Nafud Desert, Saudi Arabia

11

Welcoming Caterpillar Japan
Akashi, Japan

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

POWERING
OIL AND GAS
Russia and worldwide

Industry leadership and established global presence
are significant competitive advantages in a turbulent
world economy. Specialized expertise and experience,machine design and durability, dealer and service
excellence—in the vital oil and gas industry, these
Caterpillar strengths are driving performance forindustry leaders worldwide.
Cat® machines and services—in gas compression,
well servicing, oil and gas production and drilling—support exploration and production, pipeline construction and other oil-and-gas-related infrastructure
projects in virtually every region in the world. In
Russia, Cat machines, engines, generator sets, Solar™
gas turbines and gas compressors are integral
to the long-term development of the country’s oil
and gas resources. The Yamal Peninsula region
in northern Russia is a major gas production area
currently being developed, including constructionof the 1,100-kilometer Yamal-Ukhta pipeline.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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RUNWAYS FORECONOMIC GROWTH
Chicago, Illinois, U.S.

Chicago’s O’Hare International Airport, the world’s
busiest, is often the most delayed. Cat® machines
have played an integral part in the O’Hare
Modernization Project, a plan designed to improve
efficiency of the airport.
The modernization process calls for adding
runways, extending or eliminating others andpotentially constructing new terminal facilities.
Once complete, this long-term project is
expected to reduce overall delays by 79 percent
and weather-related delays by 95 percent,in addition to creating 195,000 new jobs and$18 billion in additional economic activity.

T.J. Lambrecht Construction, a valued Cat
customer, was awarded the mass grading contractfor extending one of the existing runways.
Supported by local Cat dealer Patten Industries, thecontractor used various machines to complete thiskey phase of the modernization process in late 2008.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

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EXPANDINGWORLDWIDE PORTCAPACITY
China’s ports and waterways

International trade is spurring dredging industry
demand related to port construction, particularly
in China. Increasing port capacity is critical toa global transportation chain that feeds progress—
more jobs, increased trade, growing economies—
all over the world.
Caterpillar Marine Asia Pacific, along with Cat
dealers WesTrac China Ltd. (WTC) and Lei Shing
Hong Machinery (LSH), represent a strong presencein the Chinese dredging market. For manufacturers
like IHC Merwede and contractors such as Shanghai
Dredging Company, Changjiang Waterway Bureau
and Changjiang Estuary Waterway, superior
dredger performance requires superior engine
technology. Cat marine engines fit the bill perfectly:®

WTC has sold Cat engines into 23 dredgers,and LSH has supplied Cat power to approximately
40 vessels.

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Caterpillar 2008 ANNUAL Report

Big Challenge

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Caterpillar At a Glance

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High-performance Cat® marine
engines power cutting devices
for dredging in clay, compacted
sand and rocky conditions.

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The dredging industry
uses a variety of vessel
types to meet widely
varying project objectives
and locations.

Excavated materials from
dredging are frequently used
to create or restore natural
habitats in areas nearby.

Most dredging projects
require extensive documentation and planning aspart of an Environmental
Impact Assessment before
they begin.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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Transportation management
Cat Logistics made significant improvements to Caterpillar’s
global transportation network in 2008. Track-and-trace
capabilities and better outbound mode management havegreatly improved shipment visibility and reduced transit
times by roughly 10 percent. Modern systems and tools help
us get Caterpillar shipments to the right place in less time—in addition, improved freight bill accuracy and compliancesave millions of dollars annually.

GLOBALSUPPLY CHAIN
TRANSFORMATION

areas: Cat parts distribution, manufacturing

Caterpillar Production System (CPS), driving

logistics and transportation.

manufacturing efficiency; and we are implementing

U.S. and worldwide

modernizing the Cat parts network, an effort that

Getting the right part to the right place at thea transportation strategy that will optimize theright time builds stronger customer relationships

flow of finished products, parts and components

and helps ensure customer success. We’refrom their origin to destination.
Cat Logistics’ capabilities are also leveraged

includes a new 750,000-square-foot distribution

into solutions for other leading organizations

With a global manufacturing and supply basecenter in Waco, Texas, and deployment of the SAP

like Newmont Mining Corporation and Landsupporting customers around the globe, a highly

Service Parts Management system, which will

Rover. Our external client business ensuresefficient and reliable supply chain is criticallyenhance efficiency and visibility throughout thethat logistics capabilities meet a market-based

important. That’s why Caterpillar Logistics Services, network. We’re aligning manufacturing logistics

test of competitiveness while delivering on key

Inc. is driving transformational change in threeclient objectives.

processes around the guiding principles of the9Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

BIG FUTURE IN INDIA
Throughout the region

Strength in developing regions is critical to durable, long-term growth, regardless of economic climate.
With a well-established, balanced and fast-growing business, Caterpillar India is becoming an increasingly
important contributor to our company’s global performance.
Caterpillar India’s manufacturing facilities produce quarry and off-highway construction trucks, backhoes
and wheel loaders, engines, power generator sets and more—serving customers not only in India, butalso worldwide. And Caterpillar’s Engineering Design Center-India represents our largest research anddevelopment capability outside of North America, playing a major role in Caterpillar’s global researchand design activities.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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PRODUCTIVITY
GOLD IN THE
MINING INDUSTRY
Elko, Nevada, U.S.

Mining industry leadership is a key Caterpillar growth driver.
Caterpillar specialized expertise, machines, technology andlogistics solutions deliver maximum production and minimum
cost per ton for customers.
Case in point: world-leading gold producer Newmont Mining
Corporation. Newmont uses Caterpillar’s MineStar™
FleetCommander system to integrate key functions and improve
operational performance in its three Nevada mines. Caterpillar
and Cat dealer Cashman Equipment Co. provide a tailored
MineStar monitoring and control solution to optimally assign
trucks, control complex materials and manage daily operations.
Caterpillar extended its value by opening a master distribution center in Elko, Nevada to support Caterpillar parts
supply and maintenance supply chain logistics for Newmont’s
Nevada operations.

Cat Mining Technology: A Complete Solution
Caterpillar worked closely with Newmont
across multiple sites to implement MineStar
FleetCommander, CAES & AQUILA™ Drill
Systems—all industry-leading technologies
for managing blasthole drills, track-type
tractors, loading units and the haulage fleet.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

WELCOMING
CATERPILLAR JAPANAkashi, Japan

Since Caterpillar and Mitsubishi Heavy Industries(MHI) joined forces 45 years ago, Japan has beena key element of Caterpillar’s capabilities and longterm growth potential. In 2008, Shin Caterpillar
Mitsubishi (SCM) became Caterpillar Japan, Ltd.
With major production facilities in Akashi
and Sagami, Caterpillar Japan is involved in the
manufacture and sales of Cat hydraulic excavators,®

wheel loaders and track-type tractors to Japan,
Asia and the world. As we continue to build a moreglobal Caterpillar, Caterpillar Japan’s leading
expertise and capabilities, along with the skills anddedication of its people, will be more importantto our success than ever. In Japan, Caterpillar is
helping to make sustainable progress possible
for customers like Sanko Kaihatsu (see next page).

Caterpillar At a Glance

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

PERFORMING IN
THE SAUDI SAND
Nafud Desert, Saudi Arabia

The ability to make progress possible in the world’s harshest
environments is an important attribute we’re leveraging to sustain
our growth. Take for example a rail line currently being built
through the Saudi desert—extreme temperatures (-10° to +50°
Celsius); fine, dry sand that behaves very much like water;
more than 2,400 kilometers to be built in 42 months—this is theultimate harsh-environment project, ideally suited to rugged
Cat machines and global service capabilities.
®

To keep all machines running smoothly, Cat dealer Zahid
Tractor built two fully equipped mobile workshops, mannedby technicians and linked by satellite to Zahid’s main facilities.
The product support team continuously monitors equipment
via Cat’s Custom Track Service; and with Cat Logistics, parts are
just a phone call away, even in the middle of the desert.

A MASSIVE TASK
By the time it’s complete, the Nafud rail line will requirenearly 350 million cubic meters of cut and fill
to pass through the desert’s huge dunes and gullies.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

CAT PRECISIONEQUALS SAFETY
Skallingen Beach, Denmark

How will we excel long term? By doing work no
one else can. In 1944, occupation forces placed
landmines on Skallingen Beach, Denmark.
For years, no machine was capable of handlingthe dangerous task of removing them, until
a contractor with AccuGrade™-equipped Cat
equipment got the job in 2008.
AccuGrade’s GPS-guided precision enableddigging to exact depths and locations,and helped ensure that every square inch wascovered. AccuGrade also was integral tomaking sure all sand was returned to its originalplace, preserving the site’s natural beauty.
Caterpillar’s AccuGrade was a critical factor
in the awarding and successful completionof the project.
The contractor, Par Aarsleff Construction,completed the project using a Cat 345B hydraulicexcavator and a Cat D6R track-type tractor,
both fitted with special protective covers toguard operators against potential explosions.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Still a danger, 60 years later
Of 7,000 landmines in the area,
an estimated five percent—some
350 mines—were still active.
SuccessIn April of 2008, the Danish
Minister of Transport cut the
ribbon to publicly open
the beach, completely freeof landmines and fragments.

Caterpillar At a Glance

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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CAT CERTIFIED USED:BIG DEMAND,BIG VALUE
Guayaquil, Ecuador

The world market for used equipment is estimatedat $100 billion and growing. By leveraging
rental fleets along with Caterpillar Redistribution
Services (CRSI), Cat dealer IIASA is meeting
increasing demand in Latin America for quality
used equipment.
Caterpillar’s ability to adjust to changing times
is what will keep the company strong over thelong term. Cat Certified Used (CCU) represents
an affordable alternative to new equipment,
and CCU machines are gaining wide acceptancethroughout Latin America after being introduced
just three years ago. From nearly-new to machinesthat have been in service for many years, highCCU standards offer customers a differentiated,

high-quality used option at a variety of pricepoints. Available exclusively through Cat dealers,
CCU machines are backed by a Caterpillar

warranty and world-class Cat parts and service.

Putting certified quality to the test
Customers can operate Cat Certified Usedmachines in IIASA’s equipment testing
ground before purchase or lease.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

SAFEGUARDING
VENICE
Venice, Italy

High tides and rising sea levels are threatening oneof the world’s most beautiful cities. Caterpillar
precision and performance are part of the solution:
Construction of a flood defense system for
Venice that includes 78 massive, mobile concrete
floodgates installed in inlet channels. Eachfloodgate comprises a box-shaped metal flap
attached to a concrete housing (caisson) by two
hinges. Construction is as complex as the systemitself, requiring preparation of temporary sites
in different locations to fabricate the floodgates.
The paving contractor, Grandi Lavori FINCOSIT
SpA, used a Cat AP655D paver, creating surfaces
to precise specifications for caisson construction.
The machines’ maneuverability, stability,
uniformity and precision resulted in exceptionallysound paved surfaces that required no further
compaction, which saved valuable time andminimized emissions.

Caterpillar At a Glance

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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Floodgate

CaissonInnovative design
The gates normally are seated, fullof water, in their housings on thebottom of the inlet channels. Whenneeded, compressed air forces
the water out and allows the gates torise, blocking the flow of seawater
into the lagoon.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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A 360° VIEW OF VALUE
Münich, Germany

Today, our customers want more than great machines.
That’s why Caterpillar offers customers like AR
Recycling GmbH in Germany solutions that givethem peace of mind beyond the purchase.
Quality assurance is the number-one priority in AR
Recycling’s machine purchase decisions. When
AR Recycling needed a new wheel loader, Cat dealer

Zeppelin offered a Cat 966H together with aCaterpillar customized 360° Solutions package. Witha three-year warranty (Equipment Protection Plan)
and fixed-rate, long-term financing tailored to thecustomer’s specific requirements, Caterpillar andZeppelin met AR Recycling’s needs—and createdan opportunity to build another solid, lastingcustomer relationship.

360° Solutions: convenience and simplicity
For AR Recycling, Caterpillar’s 360° Solutions
combined financing, a powertrain warranty,
and product and maintenance support in acustomized package.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

INDUSTRYLEADERSHIP, NEW
PARTNERSHIP
Westminster, Colorado, U.S., and worldwide

Caterpillar At a Glance

Financial Information

In a volatile economic environment, innovation

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VSS, the latest extension of the Cat Connected

has never been more critical to customer success.

Worksite Solutions strategy, integrates machineThat’s why Caterpillar is aggressively pursuing amonitoring and site management technology tostrategy to bring Cat Connected Worksite Solutions

allow customers to more efficiently and safely

to earthmoving customers.

manage their equipment fleets, reduce operating

Building on a successful joint venture started incosts and improve productivity in the areas

2002 to produce machine control and guidanceof fuel consumption, maintenance, worksite

products, Caterpillar and Trimble announced an

productivity and fleet logistics.

expanded relationship in 2008 that includes
a new joint venture, VirtualSite Solutions (VSS),
and a distribution agreement.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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BUILDING CPS
MOMENTUM
Torreon, Mexico, and worldwide

Our future depends on next-level performance,
and we’re making real progress. More andmore Caterpillar locations around the world are
beginning to show encouraging results asthey imp­­lement the Caterpillar Production
System (CPS).
CPS has come alive at Caterpillar’s Torreon,

Mexico, manufacturing facility. CPS allows
us to improve safety and get product to ourcus­t­omers quicker while removing wastefrom our processes and facilities, making us
more sustainable. Among other changes, CPS
teams completely reconfigured the plant floor,
supporting rapid transition to a radicallynew way of working. CPS implementationis helping Torreon achieve breakthroughper­formance improvement that’s real and still
gaining momentum.

Actively listen and align the targets
As the Torreon plant implements CPS
processes, dialogue drives continuous
improvement. Daily meetings ensure acommon understanding of strategy andalignment of business goals.

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

CONTINUOUS IMPROVEMENT WITH CPS
In Akashi, Japan, CPS is used to streamline
the manufacturing and production
process, getting customers high quality
products quickly.

Caterpillar At a Glance

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Caterpillar 2008 ANNUAL Report

Chairman’s Letter

Caterpillar At a Glance

Letter from
our Chairman

Financial Information

Stockholder Information

2008 was a tale of two years. For the first nine months, the boom

that began in 2004 rolled on. We were driven by solid
growth in the developing economies that was supported bygood global demand from the mining and energy sectors
as commodity prices encouraged new equipment investment.

$118.87$30,306$36,339$41,517$44,958$51,324(dollars in millions)$188.05

Cumulative stockholder return assuming an investment of $100 on December 31,
2003, and reinvestment of dividends issued thereafter.
$156.09

Sales &
Revenues$144.67

Comparison of Five-Year
Cumulative Total Return$119.84$200.00

Financial
Highlights$100.00

Big Challenge

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Caterpillar Inc.
S&P 500
S&P 500 Machinery027

Caterpillar 2008 ANNUAL Report

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Despite recessionary conditions in North America,
Europe and Japan, Team Caterpillar continued to

Stockholder Information

But toward the end of the fourth quarter, we
realized a seismic shift in the global industries

pricing strategies and overall profitability andcompetitiveness. Equity markets around the world

deliver record results during the first three quarters. we serve. The global credit market crisis weakened

lost significant value, and world financial markets

We shipped tens of billions of dollars in equipment

remained under tremendous stress. Frankly, there

already shaky business conditions in the developed

to customers, increased market share and introduced countries and, by the end of 2008, was beginning to hasn’t been a time during my 35 years at Caterpillar
new products—including the next generation

have a significant negative effect on the developing

when so many factors that affect our businessof mining trucks, the industry’s first electric drive

world as well.

changed so quickly and dramatically.

track-type tractor and the Cat C175 engine—

Commodity prices dropped dramatically—many

Despite this precipitous downturn, Teamto help our customers operate more cleanly anddeclining by as much as 60 percent in the fourthCaterpillar delivered a record year in 2008.

efficiently. Internally, the Caterpillar Production

quarter—and discouraged our mining and energy

Sales and revenues topped $51 billion, exceeding

System continued to gain momentum, as we met

customers from opening new mines and expanding our 2010 goal of $50 billion two years ahead

our aggressive year-end assessment target andproduction. We realized wild swings in globalof schedule. Profit per share was also a record

improved safety, quality and inventory performance. currencies, which affected our manufacturing costs, at $5.66.

Stockholder
Information

Profit Per
Share
1

Closing Stock
Price

1

1

$5.17

$5.37

$5.66

$0.80

$0.96

$1.15

$1.38

$1.62

$48.76$57.77$61.33$72.56$44.67(December 31)$4.04(diluted)(1) Adjusted forthe 2005 2-for-1
stock split.

Dividends
Declared Per
Share

$2.88

Big Challenge

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Additionally, we continued to invest in our future. ›› Implementing flexible order cancellations so
We invested in our people with over $60 million

that dealers can reduce their inventories

in training and development. We invested to expand ›› Reducing total compensation for management
and modernize our facilities with $2.4 billion inand support employees by up to 50 percent

capital expenditures. We invested in new product›› Reducing inventory levels in line with lower

innovations with over $1.7 billion for research andphysical plant volumes

development. And we restructured our organization ›› Managing capital expenditures and discretionary
to align more closely and effectively with our

expenses to balance short-term needs withcustomers. At the same time, we delivered results

long-term strategic initiatives

to our shareholders—raising our dividend rate

Other
Highlights›› Working closely with dealers and suppliers

17 percent and reaching a significant milestone withworldwide to stay aligned for lower capacity

75 consecutive years of quarterly dividend payments.

requirements, increased efficiency and overall

Looking ahead, projections for global growth arecost management

down dramatically everywhere, affecting practicallyevery industry we serve. While 2009 is very difficult In addition to the significant cost-reduction efforts
we are implementing in the short term, we

be around $40 billion, plus or minus 10 percent,are continuing to invest strategically for long-termwith profit per share of $2.00 ($2.50 excluding

growth, industry leadership and global competi-

redundancy costs) at a $40 billion sales level.

tiveness. And most important of all, we’re keeping

We’ve always been mindful that we serve highly a heightened focus on delivering the highest$1,728$1,404$1,347$1,084cyclical industries. To ensure we were prepared$928$2,445$1,700(dollars in millions)$1,593(dollars in millions) (Excluding
equipment leased to others.)$1,201

Research &Development$926

CapitalExpenditures

to forecast, we expect our sales and revenues tofor the next downturn, we established “trough”

quality products and services to our customers.
I know these actions disrupted the lives of ourplanning as one of the critical success factors

employees and their families, and I regret

when we introduced our enterprise strategy backthat we had to take these steps. But preserving thein 2005. In late 2008 and early 2009, we began

long-term viability of our company requires toughexecuting our trough plans in earnest including:actions. This economic crisis is shaping up to
be the most serious since the Great Depression—›› Reducing our workforce by about 20,000 throughand almost certainly will be the worst recession

a combination of voluntary and involuntary

we’ve experienced since the early 1980s. All of

separations, layoffs and the elimination of mostTeam Caterpillar must make sacrifices to ensure

contract, agency and temporary workers

the survival and future strength of our business.

›› Scheduling temporary plant shutdowns for most
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05

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Even with these challenges, I am confident inof our operations around the world and working

our prospects for the future. We’re financiallyshortened work weeks in certain regions

sound with an investment-grade credit rating and29

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

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Executive Office
We have realigned our 31
divisions under sevenexecutive officers. This
team is a strong, globally
experienced group withbroad industry andcustomer knowledge
ready to take Caterpillar
to 2010 and beyond.

Richard Lavin

Stu Levenick

Doug Oberhelman

Jim Owens

Ed Rapp

Gérard Vittecoq

Steve WunningGroup PresidentGroup PresidentGroup President

Chairman and CEOGroup PresidentGroup PresidentGroup President

access to the capital we need to run our business.

recovery comes, we will be ready to hit the groundthis financial downturn. We’re poised to strengthen

Our global manufacturing footprint is the broadest running. That’s why we’re laser focused on

our global leadership position. Working together,in our industry and its efficiency and cost

executing our strategy, including capital invest-

Team Caterpillar can build a company that is one

are rapidly transforming under the Caterpillar

ments in our production facilities, expansion ofof the best in the world!

Production System powered by 6 Sigma.

our business in key markets, investments in

We have a diverse lineup of products and services,

new product development and training to enable

reaching a broader customer base than ever before.

our people to deliver operational excellence.

The ongoing growth of our integrated services

I want to thank Team Caterpillar, our dealers andbusinesses, which represent 34 percent of the

suppliers for their continued commitment as

James W. Owens

company’s total sales and revenues, helps provide

we work through these unprecedented times. There

Chairman and CEO, Caterpillar Inc.

earnings stability. Our global Cat dealer

are great challenges, but I have every confidence

organization remains strong, well-funded and ain our team and our strategy. We can meet thiscompetitive advantage unmatched in our industry.

remarkably difficult challenge and emerge from

This economic downturn will not stop the world’s this recession a stronger, better company.
need for better infrastructure and more energy.

Good companies become great companies when

Caterpillar’s products and services are essential for they face and conquer adversity. This is our chance
restoring economic growth globally; and when

to be great. We’re not just positioned to survive

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Caterpillar 2008 ANNUAL Report

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Caterpillar
at a Glance

Chairman’s Letter

Caterpillar At a Glance

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Strength to meet the challenge
Caterpillar has the people, the international presence, the leadershipin industries critical to global progress, and the product andservice breadth to manage through today’s challenging market
environment. With a passion for serving our customers andcontinuously improving performance, Caterpillar employees, dealersand direct suppliers are determined to make sustainable progresspossible, worldwide, for the long term.

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Caterpillar 2008 ANNUAL Report

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Chairman’s Letter

Worldwide Locations

Caterpillar At a Glance

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Dealer Main Stores
Manufacturing Facilities
Office and Other Facilities
FG Wilson, MaK, Perkins, Solar Distributors
Progress Rail Locations
Parts Distribution Centers

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

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Product Range
We will meet the challenges we face by helping customers meetthe challenges they face. From massive to mini, world-classCat® machines and engines match versatility and range withperformance and productivity to meet virtually any need.

CAT 797B Mining Truck
CAT D11T Track-Type Tractor
CAT 216B Series 2 Skid Steer Loader

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Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Caterpillar At a Glance

Financial Information

Stockholder Information

Products

Industries

Services

Brands34

Caterpillar 2008 ANNUAL Report

Big Challenge

Financial
Information

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Good companies become great companies when
they face and conquer adversity
This economic downturn will not stop the world’s need for better
infrastructure and more energy. Caterpillar’s products and services
are essential for restoring economic growth globally; and whenrecovery comes, we will be ready to hit the ground running. We’renot just positioned to survive this financial downturn. We’re poised
to strengthen our global leadership position.We are weathering
this storm, and we will protect and strengthen our company for thebest long-term interests of all our stakeholders.

35

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Five-year Financial Summary(dollars in millions, except per share data)

Years Ended December 31

2008

2007

2006

2005

Sales and revenues$ 51,324$ 44,958$ 41,517$ 36,339$ 30,306$ 48,044$ 41,962$ 38,869$ 34,006$ 28,336

Sales

4

2004

4

		

Percent inside the U.S.

33%

37%

46%

47%

46%

		

Percent outside the U.S.

67%

63%

54%

53%

54%

Revenues
Profit 6, 7

$ 3,280$ 2,996$ 2,648$ 2,333$ 1,970$ 3,557$ 3,541$ 3,537$ 2,854$ 2,035

As a percent of sales and revenues
Profit per common share

6.9%

1, 6, 7

Profit per common share—diluted

2, 6, 7

Dividends declared per share ofcommon stock

7.9%

8.5%

7.9%

6.7%

$

5.83

$

5.55

$

5.37

$

4.21

$

2.97

$

5.66

$

5.37

$

5.17

$

4.04

$

2.88

$

1.620

$ 1.380Return on average common
stockholders’ equity 3, 5, 7

47.5%

$ 1.150

45.0%

46.3%

$ 0.955$ 0.800

35.9%

30.0%

1

Computed on weighted-average numberof shares outstanding.

2

Computed on weighted-average numberof shares outstanding diluted by assumed
exercise of stock-based compensation
awards, using the treasury stock method.

3

Represents profit divided by averagestockholders’ equity (beginning ofyear stockholders’ equity plus end of year
stockholders’ equity divided by two).

4 	The per share data reflects the 2005 2-for-1
stock split.
5	In 2006, we adopted the balance sheet
recognition provisions of Statementof Financial Accounting Standard 158,
“Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans —an amendment of FASB Statements
No. 87, 88, 106 and 132(R),” which changed
the manner in which we account for
postemployment benefits.
6

In 2006, we adopted Statement of Financial
Accounting Standard 123 (revised 2004),“Shared-Based Payment,” which changed
the manner in which we account for
stock-based compensation.

7

In 2007, we adopted Financial AccountingStandards Board Interpretation No. 48,“Accounting for Uncertainty in Income
Taxes—an Interpretation of FASBStatement No. 109,” which changed themanner in which we account for uncertain
tax positions.

Capital expenditures:
Property, plant and equipment$ 2,445$ 1,700$ 1,593$ 1,201$	 926Equipment leased to others$ 1,566$ 1,340$ 1,082$ 1,214$ 1,188

Depreciation and amortization$ 1,980$ 1,797$ 1,602$ 1,477$ 1,397

Research and development expenses$ 1,728$ 1,404$ 1,347$ 1,084$

As a percent of sales and revenues

3.4%

3.1%

Wages, salaries and employee benefits

$

9,076

$ 8,331

Average number of employees

106,518

97,444

3.2%
$

3.0%

928
3.1%

7,512

$ 6,928$ 6,025

90,16081,67373,033

36

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Sales & Revenues(dollars in millions)$26,062$28,359$31,804$9,492$11,075$12,807$13,603$16,240$1,970$2,333$2,648$2,996$3,280Financial Products$22,931

Engines$18,844

Machinery

04

05

06

07

08

04

05

06

07

08

04

05

06

07

08

$3,280 Financial Products$31,804 Machinery$16,240 Engines

2008 Total$51,324

37

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Operating Profit(dollars in millions)$3,027$2,758$1,803$589$1,071$1,630$1,826$2,319

$470

$531

$670

$690

$579

Financial Products$2,431Engines$1,756

Machinery

04

05

06

07

08

04

05

06

07

08

04

05

06

07

08

$579 Financial Products$1,803 Machinery$2,319 Engines

2008 Total$4,448Eliminations of ($131), ($249), ($406), ($353) and ($253) (dollars inmillions) for 2004, 2005, 2006, 2007 and 2008, respectively, are required
to arrive at consolidated operating profit.

38

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Sales & Revenues by Geographic Region

MachineryEngines
Financial Products
1(dollars in millions)2$2,001$12,769$5,445$590

North America$9,220$20,215EAME$16,121$361$6,311$2,910Asia Pacific(1) Does not include internal engine transfersof $2.822 billion, $2.549 billion and $2.310
billion in 2008, 2007 and 2006. Internal
engine transfers are valued at prices
comparable to those for unrelated parties.

$8,980$328$1,574$5,709$4,106
Latin America$6,008(2) Does not include revenues earned from
Machinery and Engines of $308 million,$400 million and $466 million in 2008, 2007
and 2006, respectively.

North America

EAME

Asia Pacific

Latin America

Total Sales & Revenues

08

07

06

08

07

06

08

07

06

08

07

06

08

07

06

Machinery$ 12,769$ 12,596$ 14,215$ 9,220$ 8,588$ 6,223$ 5,709$ 4,026$ 3,080$ 4,106$ 3,149$ 2,544$ 31,804$ 28,359$ 26,062

Engines$ 5,445$ 5,092$ 5,940$ 6,311$ 5,245$ 4,064$ 2,910$ 2,136$ 1,701$ 1,574$ 1,130$ 1,102$ 16,240$ 13,603$ 12,807

Financial Products$ 2,001$ 2,007$ 1,852$

195$ 3,280$ 2,996$ 2,648

Total$ 20,215$ 19,695$ 22,007$ 16,121$ 3,841$ 51,324$ 44,958$ 41,517

590

$

479

$ 14,312$377$ 10,664$

361$ 8,980$240$ 6,402$224$ 5,005$328$ 6,008$270$ 4,549$

39

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

New Machinery Distribution
to End Users

New Engine Distribution
to End Users(2008 dealer reported worldwide distribution of Cat®
machinery by major end use)

(2008 worldwide distribution of Cat engines)

2%

Waste

3%

Forestry

8%	On-Highway1

4%	Paving & Compaction
4%

Industrial

7%

Quarry & Aggregates

12% Marine

14% Industrial

12%	Equipment Services

15% General Construction
30%	Electric Power Generation

25% Mining

36%	Petroleum
28% Heavy Construction(1) In 2008 we decided to exit the on-highway engine business.

40

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Full-Time Employees
at Year-End

Sales & Revenues
Per Employee

1

2

$415

$445

$460

$461

$482

(dollars in thousands)

04

05

06

07

08

North America

54,284EAME

26,983

Asia Pacific

17,217

Latin America

14,403

08

07

06

08

07

06

Inside U.S.

53,50950,54548,709North America

54,28450,90149,018Outside U.S.

59,37850,78845,884EAME

26,983

26,16824,845

Total

112,887

101,333

94,593

Asia Pacific

17,217

10,334

7,499

Latin America

14,403

13,93013,231(1) Does not include flexible workforce of agency,
contract and non-Caterpillar workers.
(2) Total sales and revenues divided by average
number of employees.

41

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Cat Dealer Employees
at Year-End

Cat Dealer Employees
Cat Dealers
Cat Dealer Net Worth57(dollars in millions)51$7,886
North America

51,712

EAME

32,212$2,675$1,636$4,343

Asia Pacific

26,811

Latin America

21,02332

40

North America

Cat Dealer Employees
Cat Dealers
Cat Dealer Net WorthEAME

Asia Pacific

Latin America

Total

08

07

06

08

07

06

08

07

06

08

07

06

08

07

06

51,712

52,58351,53032,212

28,796

28,611

26,811

22,51821,62021,023

17,465

15,647

131,758

121,362

117,408

57

58

59

51

50

50

40

40

40

32

33

33

180

181

182

$ 7,886$ 7,588$ 6,687$ 4,343$ 3,095$ 2,566$ 2,675$ 2,079$ 1,637$ 1,636$ 1,405$ 1,254$ 16,540$ 14,167$ 12,144

42

Caterpillar 2008 ANNUAL Report

Chairman’s Letter

Patent Information

Caterpillar At a Glance

Financial Information

$39

$36

$17

$29

(dollars in millions)430

The number of patents awarded to Caterpillar
increased for the fourth straight year, as
Caterpillar has continued to increase its
investment in new products and services. In
2008, over 600 employees were named on the
more than 430 patents granted to Caterpillar
companies worldwide.

33%	Education

Exports from the U.S.

31%	Health and Human Services(dollars in millions)

CanadaStockholder Information

Corporate Giving$27

Big Challenge$ 2,172
18% Culture and Arts

EAME

$ 6,568

Asia Pacific$ 3,834

12%	Environment

Latin America$ 3,577

5%

Civic and Community

1%	Trade and Public Policy
04

05

06

07

08

43

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter2008 Boardof Directors( as of December 31, 2008 )W. Frank Blount 70
Chairman and CEO of JI Ventures, Inc.
(venture capital). Other directorships:
Alcatel-Lucent S.A.; Entergy Corporation;
and KBR, Inc. Mr. Blount has beena director of the company since 1995.
Dr. John R. Brazil 63
President of Trinity University (San Antonio,
Texas). Dr. Brazil has been a director of thecompany since 1998.
Daniel M. Dickinson 47
Managing Partner of Thayer | Hidden Creek(private equity investment). Other
directorship: BFI Canada Ltd. Mr. Dickinson
has been a director of the company
since 2006.
John T. Dillon 70
Former Chairman and CEO of International
Paper (paper and forest products).
Mr. Dillion serves as Vice Chairman ofEvercore Capital Partners (advisory andCaterpillar At a Glance

investment firm) and Senior Managing
Director of the firm’s investment activities
and private equity business. Other
directorships: E.I. du Pont de Nemours andCompany; Kellogg Co.; and Vertis Inc. Mr.
Dillon has been a director of the company
since 1997.
Eugene V. Fife 68
Managing Principal of Vawter Capital LLC(private investment). Mr. Fife served as
the interim CEO and President of Eclipsys
Corporation (healthcare information
services) from April to November of 2005.
He currently serves as the non-executive
Chairman of Eclipsys Corporation.
Mr. Fife has been a director of the company
since 2002.
Gail D. Fosler 61
President, Chief Economist and Trustee of
The Conference Board (research andbusiness membership). Prior to her current
position, Ms. Fosler served as Executive
Vice President , Senior Vice President andChief Economist of The Conference Board.
Other directorship: Baxter International Inc.
Ms. Fosler has been a director of thecompany since 2003.

Financial Information

Stockholder Information

Juan Gallardo 61
Chairman of Grupo Embotelladoras Unidas
S.A. de C.V. (bottling). Former Vice Chairmanof Home Mart de Mexico, S.A. de C.V.
(retail trade), former Chairman of Grupo
Azucarero Mexico, S.A. de C.V. (sugar mills)
and former Chairman of Mexico Fund Inc.
(mutual fund). Other directorships: Grupo
Mexico S.A. de C.V. and Lafarge S.A.
Mr. Gallardo has been a director of thecompany since 1998.
David R. Goode 68
Former Chairman, President and CEO of
Norfolk Southern Corporation (holding
company engaged principally in surface
transportation). Other director­ships:
Delta Air Lines, Inc. and Texas Instruments
Incorporated. Mr. Goode has beena director of the company since 1993.
Peter A. Magowan 67
Former President and Managing General
Partner of the San Francisco Giants (major
league baseball team). Mr. Magowan has
been a director of the company since 1993.

William A. Osborn 61
Chairman and former CEO of Northern Trust
Corporation (multibank holding company)
and The Northern Trust Company (bank).
Other directorship: Abbott Laboratories.
Mr. Osborn has been a director of thecompany since 2000.
James W. Owens 63
Chairman and CEO of Caterpillar Inc.
(machinery, engines, and financial
products). Prior to his current position,
Mr. Owens served as Vice Chairman andas Group President of Caterpillar. Other
directorships: Alcoa Inc. and International
Business Machines Corporation.
Mr. Owens has been a director of thecompany since 2004.
Charles D. Powell 67
Chairman of Capital Generation Partners(asset and investment management), LVMH
Services Limited (luxury goods) and Magna
Holdings (real estate investment). Prior
to his current positions, Lord Powell was
Chairman of Sagitta Asset Management
Limited (asset management). Other
directorships: Hongkong Land Holdings
Limited; LVMH Moet-Hennessy Louis

Vuitton; Mandarin Oriental International
Ltd.; Northern Trust Global Services Limited;
Textron Corporation; Schindler Holding Ltd.;and Yell Group plc. Lord Powell has beena director of the company since 2001.
Edward B. Rust, Jr. 58
Chairman, President and CEO of State Farm
Mutual Automobile Insurance Company(insurance). He is also President and CEOof State Farm Fire and Casualty Company,
State Farm Life Insurance Company andother principal State Farm affiliates as wellas Trustee and President of State Farm
Mutual Fund Trust and State Farm Variable
Product Trust. Other directorships:
Helmerich & Payne, Inc. and The McGrawHill Companies, Inc. Mr. Rust has beena director of the company since 2003.
Joshua I. Smith 68
Chairman and Managing Partner of the
Coaching Group, LLC (management
consulting). Other directorships:
Comprehensive Care Corporation; Federal
Express Corporation and The Allstate
Corporation. Mr. Smith has beena director of the company since 1993.

44

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Committee
Membershipand Officers(as of December 31, 2008)

Caterpillar At a Glance

Chairman and Chief Executive Officer
James W. Owens
Group Presidents
Richard P. Lavin
Stuart L. Levenick
Douglas R. Oberhelman
Edward J. Rapp

Audit Committee
Eugene V. Fife, ChairJohn R. Brazil

Gérard R. Vittecoq
Steven H. Wunning

William A. Osborn

Vice Presidents
Kent M. Adams
Financial Products

Compensation Committee
David R. Goode, Chair

William P. Ainsworth
Progress Rail Services

Daniel M. Dickinson

Ali M. Bahaj
Caterpillar Japan

John T. Dillon

Edward B. Rust, Jr.
Governance Committee
W. Frank Blount, Chair
Gail D. FoslerPeter A. Magowan
Public Policy Committee
Charles D. Powell, Chair
Juan Gallardo
Joshua I. Smith

Sidney C. Banwart
Human Services
Michael J. Baunton (retiring May 2009)
Europe, Africa, Middle East Operations
Rodney C. Beeler
Marketing and Product Support Centerof Excellence
Mary H. Bell
Building Construction Products
Thomas J. Bluth
Earthmoving
James B. Buda
Legal Services
David B. Burritt
Global Finance & Strategic Services
Richard J. Case
Marine & Petroleum Power
Robert B. Charter
Asia Pacific Distribution

Financial Information

Stockholder Information

Christopher C. Curfman
MiningTana L. Utley
Product Development Center of Excellence

Paolo Fellin
Europe, Africa, Middle East Distribution

James D. Waters
Production Center of Excellence

Steven L. Fisher
Remanufacturing

Robert T. Williams
Americas Operations

Gregory S. FolleyCore Components

Jiming Zhu
Caterpillar China

Thomas A. Gales (retiring December 2009)
Americas Distribution Services
Stephen A. Gosselin
Solar Turbines Incorporated
Hans Haefeli
Advanced Systems
John S. Heller
Global Information Services
Gwenne A. Henricks
Industrial Power Systems
Stephen P. Larson
Logistics
Daniel M. Murphy
Global Purchasing
James J. Parker
Americas Distribution Services
Mark R. Pflederer
Electronics & Connected Worksite
William J. RohnerElectric Power
Cristiano V. Schena
Europe, Africa, Middle East Operations
William F. Springer
Quarry & Specialty Industries
Gary A. Stampanato
Excavation
Gary A. Stroup
Large Power Systems

New Vice Presidents(Effective January 1, 2009)

Robert B. Charter
General Counsel & Secretary
James B. Buda
Chief Financial Officer
David B. Burritt
Chief Human Resources Officer
Sidney C. Banwart
Gregory S. Folley
Chief Information Officer
John S. Heller
Chief Technology Officer
Tana L. Utley
Controller
Bradley M. Halverson
Jiming Zhu
Treasurer
Kevin E. Colgan
Chief Ethics and Compliance Officer
Edward J. Scott
Chief Accounting Officer
Jananne A. Copeland
Assistant Treasurer
Robin D. Beran
Assistant Secretaries
Tinkie E. Demmin
Laurie J. Huxtable

45

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Supplemental
Stockholder
Information
STOCKHOLDER SERVICES
Registered stockholders should contact:
Stock Transfer Agent
BNY Mellon Shareowner Services
P.O. Box 358015
Pittsburgh, PA 15252-8015
Phone: (866) 203-6622 (U.S. and Canada)(201) 680-6578 (Outside U.S. and Canada)
Hearing Impaired: (800) 231-5469(U.S. or Canada)(201) 680-6610 (Outside U.S. or Canada)Internet: www.bnymellon.com/
shareowner/isd
Caterpillar Assistant Secretary
Laurie J. Huxtable
Caterpillar Inc.
100 N.E. Adams Street
Peoria, IL 61629-7310
Phone: (309) 675-4619
Fax: (309) 675-6620
E-mail: catshareservices@cat.com
Shares Held in Street Position
Stockholders that hold shares througha street position should contact their bankor broker with questions regarding
those shares.

Caterpillar At a Glance

STOCK PURCHASE PLAN
Current stockholders and other interested
investors may purchase Caterpillar Inc.
common stock directly through the Investor
Services Program sponsored andadministered by our Transfer Agent. Current
stockholders can get more information on
the program from our Transfer Agent using
the contact information provided above.
Non-stockholders can request program
materials by calling: (866) 353-7849. The
Investor Services Program materials areavailable on-line from our Transfer Agent's
website or by following a link fromwww.cat.com/dspp
INVESTOR RELATIONSInstitutional analysts, portfolio managers,
and representatives of financial institutions
seeking additional information about theCompany should contact:
Director of Investor Relations
Mike DeWalt
Caterpillar Inc.
100 N.E. Adams Street
Peoria, IL 61629-5310
Phone: (309) 675-4549
Fax: (309) 675-4457
E-mail: catir@cat.com
Internet: www.cat.com/investor
COMMON STOCK (NYSE: CAT)
Listing Information
Caterpillar common stock is listed on the
New York and Chicago stock exchanges in
the United States, and on stock exchanges
in Belgium, France, Germany, Great Britain
and Switzerland.

Financial Information

Stockholder Information

Compliance
For 2008, Caterpillar filed an Annual CEO
Certification in compliance with New Yorkstock exchange rules and CEO/CFO
certifications in compliance with Sections
302 and 906 of the Sarbanes-Oxley Act of2002. These certifications are included as
exhibits to our Form 10-K filing for the
relevant fiscal year.
Price Ranges
Quarterly price ranges of Caterpillar common
stock on the New York Stock Exchange,
the principal market in which the stock is
traded, were:
2008

2007

Quarter

High

Low

High

Low

First
SecondThird
Fourth$78.63$85.96$75.87$59.03$59.60$72.56$58.11$31.95$68.43$82.89$87.00$82.74$57.98$65.86$70.59$67.00

Number of Stockholders
Stockholders of record at year-end totaled
39,578, compared with 39,061 at the endof 2007. Approximately 60 percent of ourissued shares are held by institutions andbanks, 32 percent by individuals, and8 percent by employees through company
stock plans.
Caterpillar tax qualified defined
contribution retirement plans held
40,114,225 shares at year-end, including
10,108,741 shares acquired during 2008.
Non-U.S. employee stock purchase plans
held an additional 4,909,252 shares at
year-end, including 965,309 shares acquired
during 2008.

Company
Information
Current Information
Phone our Information Hotline: (800)228-7717 (U.S. or Canada) or (858) 244-2080(Outside U.S. or Canada) to request
company publications by mail, listen toa summary of Caterpillar’s latest financial
results and current outlook, or to request
a copy of results by fax or mail.
Request, view or download materials
on-line or register for email alerts byvisiting www.cat.com/materialsrequest
Historical Information
View/download online atwww.cat.com/historical
Annual Meeting
On Wednesday, June 10, 2009, at 1:30 p.m.,
Central Time, the annual meeting ofstockholders will be held at the Northern
Trust Building, Chicago, Illinois. Proxymaterials are being sent to stockholders on
or about May 1, 2009.
Internet
Visit us on the Internet at www.cat.com
Information contained on our website
is not incorporated by reference into thisdocument.

46

Caterpillar 2008 ANNUAL Report

Big Challenge

Chairman’s Letter

Caterpillar At a Glance

Financial Information

Stockholder Information

Credits

TrademarkInformation

Safe Harbor
Statement

PRODUCED BY
Caterpillar Corporate Public Affairs

CAT, CATERPILLAR, their respective logos, TODAY’S WORK.,TOMORROW’S WORLD.,“Caterpillar Yellow” and the POWER
EDGE trade dress, as well as corporate and product identity
used herein, are trademarks of Caterpillar and may not be usedwithout permission. MaK is a trademark of Caterpillar Motoren
GmbH & Co. KG and may not be used without permission.
PROGRESS RAIL SERVICES and design is a trademark ofProgress Rail Services Corporation and may not be usedwithout permission. SOLAR, as well as corporate and productidentity used herein, are trademarks of Solar Turbines
Incorporated and may not be used without permission.
PERKINS, the “square and circles” design and “Perkins Blue”
are trademarks of Perkins Holdings Limited and may not be
used without permission. FG WILSON and the “globe” design
are trademarks of FG WILSON (Engineering) Limited and may
not be used without permission.

Certain statements in this report relate to future events andexpectations that constitute forward-looking statements
involving known and unknown factors that may cause actual
results of Caterpillar Inc. to be different from those expressedor implied in the forward-looking statements. In this context,
words such as “expects,” “anticipates,” “intends,” “plans,”“believes,” “seeks,” “will” or other similar words and phrases
often identify forward-looking statements. Actual results of thecompany may differ materially from those described or impliedby such forward-looking statements based on a number offactors and uncertainties, including, but not limited to, changes
in economic, political or competitive conditions; market
acceptance of the company’s products and services; changes
in law, regulations and tax rates; and other general economic,
business and financing conditions and factors described in
more detail in the company’s filings with the Securities andExchange Commission, included in its year-end report on Form
10-K filed on February 20, 2009. We do not undertake to update
our forward-looking statements.

DESIGN
VSA Partners, Inc.
PHOTOGRAPHY
Anders Thomsen, Pon Equipment
Caterpillar Television & Electronic Media Solutions
Gianluca Franchini, Photo Service
Mitch Colgan, Colgan Photographic
OAO Gazprom
Victor Molina, Solar Turbines
Stig Stasig© 2009 Caterpillar
All Rights Reserved
Incorporated in Delaware
An equal opportunity employer

WWW.CAT.COM
Peoria, IL 61629(309) 675-1000
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