Caterpillar updates 2015 expectations
- Details
- Published on 24 September 2012
- Written by Paul Gordon
While profit expectations are lower, sales and revenues may reach $100 billion, company tells analysts 
Caterpillar Inc. said Monday it expects sales and revenues to be between $80 billion and $100 billion in 2015.
But Chairman Doug Oberhelman, in a meeting with Wall Street analysts during MINExpo in Las Vegas, said profits per share probably will not be as high as originally expected because of worldwide economic uncertainty.
Still, he said, the company expects those profits to be in the range of $12 to $18 a share.
Caterpillar Inc. believes its sales and revenues could reach as high as $100 billion in the next three years, Wall Street analysts were told Monday during MINExpo in Las Vegas.
But its profits per share will likely be lower than originally expected because of worldwide economic uncertainty, the company's CEO said.
Caterpillar Chairman Doug Oberhelman told the analysts the company is committed to reaching the top 25 percent of the S&P 500 for total shareholder return and to do so it expects sales and revenues to be between $80 billion and $100 billon in 2015, which would easily be record range for the world's largest heavy equipment manufacturer.
Caterpillar's sales and revenues in 2011 were a record $60.14 billion, or $7.40 a share.
Profit would be expected to be in the range of $12 to $18 per share, Oberhelman said. It earlier had forecast profits to be in the range of $15 to $20 a share in 2015.
Caterpillar has a record of delivering on its expectations. For example, the last time Caterpillar did a three-year outlook, in 2009, it announced a goal of $60 billion in sales and revenues and profit-per-share of $8 to $10 in 2012.
"There are a number of geopolitical and economic factors driving uncertainty in the world today, but our base case scenario calls for modest global economic growth over the next few years," Oberhelman said. "We think this is a reasonable view and the most likely outcome, and based on that, we expect 2015 sales and revenues for Caterpillar to be in a range of $80 to $100 billion, and for profit in a range of $12 to $18 per share."
He added, however, that Caterpillar would again be prepared if another recession hits in the meantime. In the last recession that began in 2008, Caterpillar had a loss in only one quarter because of what it called "trough planning" in the event of economic downturn. The trough planning was business unit by business unit and included temporary shutdowns and layoffs and cuts in salaries and bonuses for management.
"Just as we have done in the past, Caterpillar is ready to act if we enter a recession. We don't think it's likely, but if it happens, we are prepared to react and would expect to remain attractively profitable and to maintain our dividend," Oberhelman said.
Also during the meeting with analysts, Caterpillar outlined operational improvements that occurred in the last few years — changes driven by the execution of the company's updated Vision 2020 strategy that includes a renewed focus on customers.
"We have done a great job of delivering on our strategy, and over the past 10 years we have delivered a total shareholder return near the top 15 percent of companies in the S&P 500," Oberhelman said. "From the shop floor to the executive office, we are all working to create a culture within Caterpillar that expects more from ourselves and delivers more to our customers. That attitude, along with a drive for constant improvement, is a requirement in today's highly competitive global marketplace. We are changing the culture of the company and building on Caterpillar's legacy to grow its leadership position."
MINExpo is the world's largest and most comprehensive trade show dedicated to the mining industry that is held in Las Vegas every four years at the Las Vegas Convention Center.
Caterpillar said it has the broadest line of both surface and underground mining and materials handling equipment available in the mining industry and is showcasing them at the event, which continues through Wednesday. Nearly 100 different Caterpillar dealerships are represented at the show. Dealer personnel and Caterpillar Global Mining staff will host almost 6,000 customers and business partners during MINExpo.
The company announced Monday that its exhibit, titled "Wherever There's Mining We're There," is the largest single exhibit ever presented at MINExpo. With more than 52,000 square feet of exhibit space, Caterpillar is also introducing new mining systems and machines during the event.
"There is no bigger stage to give us this remarkable opportunity to tell the Caterpillar mining story. We recognize that mining is at the core of an unprecedented drive for urbanization and modernization," said Oberhelman. "We still believe the long-term outlook is positive for this industry and we're uniquely positioned to capitalize on that growth. That's why the company has made major investments in mining across the Caterpillar organization, including the acquisitions of Bucyrus and Siwei. By combining organic growth with the growth that we expect to receive from these acquisitions, Caterpillar will better serve mining customers, which benefits our dealers, employees and stockholders."
In the last year, Caterpillar has added more than 100 products to its mining portfolio. The Caterpillar exhibit is divided into two areas — surface and underground — featuring more than two dozen products and technologies, including off-highway mining trucks, hydraulic shovels, the next generation D11T track-type tractor and a variety of underground mining machines such as continuous miners, a longwall shearer and plow, as well as other support equipment, the company said. In all there are 28 pieces of iron weighing 2,600 tons in Caterpillar's exhibit.
Among the new products being launched at MINExpo is the 6120B H FS hydraulic shovel. The 6120B is the first diesel-electric hybrid ultra-class shovel available in the industry, it said.
"Like our customers, Caterpillar is committed to building a better world. That's why when customers asked us to provide more products for the mining industry, the company responded in a big way, which is something we look forward to showing at MINExpo this week," said Steve Wunning, Caterpillar group president responsibility for Resource Industries. "Beyond just the iron, we understand the issues our customers face, such as safety, environmental stewardship, emissions standards and skills shortages and training, and we work together to address them. This will continue to be our focus."
Part of the Caterpillar is an Electro-Motive Diesel (EMD) SD70ACe locomotive — painted in Caterpillar yellow — that will give the mining world the chance to view the railroad technology that transports minerals to market. At 420,000 pounds, the massive locomotive is among some of the largest mobile equipment in the world.
Another big part of Caterpillar's week was the induction of former Chairman Glen Barton into the National Mining Hall of Fame last Saturday, also in Las Vegas. Barton, who retired in 2004 after five years at Caterpillar's helm, is credited with leading the company to a leadership position in the global mining industry.
"I am humbled and proud to be selected for this honor on behalf of Caterpillar and the many people who I've had the privilege of working with over the years," said Barton in a news release. "I will always have a passion for the mining industry and continue to recognize the importance of focusing on safety as well as educational efforts to help the public understand the role that mining plays in society."
Paul Gordon is editor of The Peorian. He can be reached at 692-7880 or editor@thepeorian.com
Caterpillar updates 2015 financial expectations
- Details
- Published on 24 September 2012
- Written by Paul Gordon
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While profit expectations are lower, sales and revenues may reach $100 billion, company tells analysts
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Caterpillar Inc. said Monday it expects sales and revenues to be between $80 billion and $100 billion in 2015. But Chairman Doug Oberhelman, in a meeting with Wall Street analysts during MINExpo in Las Vegas, said profits per share probably will not be as high as originally expected because of worldwide economic uncertainty. Still, he said, the company expects those profits to be in the range of $12 to $18 a share.
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A new home for the Duryea
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- Published on 10 September 2012
- Written by Paul Gordon
The 1899 Duryea Trap, built in Peoria, will rest permanently in Riverfront Museum
The Duryea Trap, built in 1899 by Charles Duryea in a barn behind his Barker Avenue house, has landed in what will be its final home.
The three-wheeled vehicle, one of the first gasoline-powered vehicles ever built, was moved from the PeoriaNEXT Innovation Center to the museum on Monday, with a pit stop at the Barker Avenue house known as the Duryea Home.
The museum opens Oct. 20.
Charles Duryea died in September 1938 basically penniless, the idea for his automobiles still not the success he'd dreamed of, John Parks said.
But Duryea would likely have been proud on Monday to see his invention, the three-wheeled 1899 Duryea Trap, be moved into the new Peoria Riverfront Museum, which will become its permanent home, said Parks, unquestionable the local authority on Duryea and his brother Frank. The museum is scheduled to open Oct. 20.
"This car is a Peoria icon. It is making its final move today where it will be more visible and accessible to the public. It belongs to Peoria," said Parks, head of the Peoria Regional Museum Society that has owned the Duryea Trap since 1991 and now will donate it to the new museum.
The car made a pit stop between the PeoriaNEXT Innovation Center, its home the last couple years, and the new museum. Parks, dressed in period garb as Duryea, brought the Trap to the former Duryea home on Barker Avenue, where it was built.
It was in a barn behind the house, now owned by Kelly Kolton, that Duryea built the gas-powered vehicle steered with a rudder and drove it on Peoria streets. He even drove it downtown, Parks said. "That means he somehow was able to get the vehicle back up the hill to get back to Barker Avenue. Don't ask me how," he said, chuckling.
The first one was a prototype, Parks said, adding that the Duryea brothers were among the first to produce gasoline powered automobiles around the turn of the last century and that they built 13 or 14 of them in Peoria Heights before moving to the east coast.
Charles Duryea was still trying to sell the rights to the Duryea Trap design when he died in Philadelphia, he added. "He was penniless," he said.
The Trap was restored decades ago by L. Scott Bailey, the founder of Automobile Quarterly. He sold it to the Peoria Regional Museum Society for $125,000 in 1991 and the vehicle has been housed in two locations since. First it was at the Peoria Public Library main branch downtown then at the PeoriaNEXT building when the library underwent renovations.
Parks, who with Peoria artist Elmer King headed up the fundraising campaign called Save The Duryea to raise the money pay for it — a campaign that took five years — said the car was often driven around Peoria when the campaign was going on. "We figured out that probably wasn't good for the car, so we drained it of all its fluids and parked it," he said after the vehicle was unloaded from a trailer in front of the Barker Avenue house.
Kolton was on-hand for the event as were a dozen or so neighborhood residents and curious passersby wondering about the three-wheeled vehicle, the man dressed in an early 20th century costume and media gathered in front of the house. Kolton showed an old photograph taken more than 100 years ago in front of the house that is now kept inside the two-story structure.
After pictures and interviews, the vehicle was loaded back into the trailer for its final journey. Now it will be parked for good, in the new museum near another Peoria icon, the restored old courthouse clock.
Parks said the Duryea has been well cared for but he believes donating it for permanent display at the new museum will enhance its safety and care.
"We hope the Duryea display will be interactive so that people can really learn about its history and that of the Duryea brothers. This car belongs to everyone and we want everyone to get enjoyment from it," he said.
Paul Gordon is editor of The Peorian. He can be reached at 692-7880 or editor@thepeorian.com
Inaugural Tonti Award to honor Caterpillar
- Details
- Published on 14 September 2012
- Written by Paul Gordon
Award named for Peoria founder to honor those who demonstrate principled leadership 
Caterpillar Inc., known for providing principled leadership to civic and not-for-profit organizations throughout the Peoria region, will be the recipient of the inaugural Henri de Tonti Award, the Peoria Historical Society announced.
The award, named after the French explorer and entrepreneur who was among the founders of Peoria more than 300 years ago, will be presented at the inaugural Henri de Tonti Celebration dinner at the Peoria Civic Center on Saturday. The event is open to the public and begins at 6 p.m.
The Peoria Historical Society and Institute for Principled Leadership in Public Service at Bradley University will co-host the dinner. Tickets are $150 and can be reserved by calling 674-1921.
The Henri de Tonti Award will be presented annually, not only as an effort to increase name recognition for the Peoria founder who played a pivotal role in the history of North American exploration, but to honor an individual, company or organization for their leadership to the region.
To date the only recognition of de Tonti in Peoria is that a small street bears his name.
For the celebration, Peoria artist Lonnie Stewart created a sculpture of Tonti that will serve as the award.
"We are honored and proud to be chosen as the very first winner of this award. Peoria has been our home for a long time, and we are very proud of our shared histories and look forward to prospering together in the future," said Caterpillar Chairman and CEO Doug Oberhelman. "With our new Visitors Center opening soon and the news of our new headquarters building project in the downtown area, we are committed to continuing our leadership legacy here."
The award recognizes not only the company's commitment to continuous principled leadership, but also the individual efforts of employees who have volunteered and been elected to leadership roles and improved the quality of life for all citizens, the historical society said.
"This is a premier, inaugural opportunity for those in the Tri-County region to come together for the first time with a new collaboration between our Historical Society and the Institute for Principled Leadership to honor the first recipient of the Henri de Tonti Award," said Russ Crawford, Peoria Historical Society president.
He said the society hopes current and past leaders of Caterpillar will attend "so that the community can appropriately say 'thank you' to them, to the company and to the thousands of men and women of Caterpillar throughout the years that have demonstrated leadership by helping our region through their voluntary contribution of time, talents and treasure."
Proceeds from the event will be used to support the Historical Society mission to preserve Peoria's history, Historical Society events, community projects and the two historic houses (Flanigan and Pettengill-Morron).
Founded in 1934, the Peoria Historical Society is a not-for-profit organization committed to the preservation of our local history. The mission is to preserve and celebrate the Peoria area story. PHS offers historical trolley tours, holiday and special events and the archival of significant historical artifacts.
The Institute for Principled Leadership in Public Service at Bradley University seeks to become nationally recognized for developing ethical, bipartisan, collaborative and civil leaders for careers in public service.
According to the Peoria Historical Society, Henri de Tonti accompanied Rene-Robert Cavalier, Sieur de LaSalle on his first voyage to the Mississippi River in 1679 when the explorers first reached the Lake Pimiteoui area along the Illinois River and constructed Fort Creve Coeur. The King of France granted Tonti and his trading partners' exclusive trading rights for the Illinois territory. In the fall of 1679, Tonti directed that the trading outpost should be relocated from Starved Rock to the Lake Pimiteoui area.
"It is estimated that Tonti traveled over 85,000 miles by canoe and foot negotiating with Indian tribes, discovering new sources of supply for the fur trade and hiring and supervising voyageurs. He was a talented leader and accomplished negotiator," the PHS said.
Paul Gordon is editor of The Peorian. He can be reached at 692-7880 or editor@thepeorian.com
Blues Fest moved ahead of Isaac
- Details
- Published on 30 August 2012
- Written by Paul Gordon
Blues Festival and moe. moved to Expo Gardens; previously purchased tickets will be honored
It isn't often the effects of a hurricane are felt in central Illinois, but this weekend will likely be the exception.
Not only will the expected deluge, remnants of Hurricane Isaac, wreak havoc with basements and flood-prone creeks, it is forcing the relocation of one of the Peoria riverfront's best known and most popular events, the Budweiser Illinois Blues Festival.
Also being relocated to Expo Gardens is Sunday night's concert by moe., which was also scheduled for the riveront.
It isn't often the effects of a hurricane are felt in central Illinois, but this weekend will likely be the exception.
Not only will the expected deluge, remnants of Hurricane Isaac, wreak havoc with basements and flood-prone creeks, it is forcing the relocation of one of the Peoria riverfront's best known and most popular events, the Budweiser Illinois Blues Festival.
Also being relocated to Expo Gardens is Sunday night's concert by moe., which was also scheduled for the riveront.
Because promoters were able to get ample warning about approaching storms they decided to move the two-day festival and moe. concert to Expo Gardens, with times for the Friday and Saturday events the same as were planned for the riverfront, said Jay Goldberg of Jay Goldberg Events and Entertainment.
"Usually with a festival like this it goes on rain or shine. This time we got so much advance warning about the approach front we thought this would be the best thing to do, especially from a safety standpoint," Goldberg said Thursday, shortly after he returned from Springfield to get all of the permits necessary for such an event changed from the riverfront to Expo Gardens.
"We've never had to move the Blue Fest before. It's been pretty complicated, with 20 bands and competitions and workshops," he said, adding there were a lot of phone calls to agents and tour managers involved. "Everybody has been totally fine with it. They understand."
Still, Goldberg said, he and other organizers are somewhat nervous about how the move will be received by the public. "We're not sure how they will feel about moving from the ambience of the riverfront, with the outdoor stages and the grassy knolls, to an indoor venue. We hope they will understand and still come because other than the venue nothing changes. We have a really strong show, we will still have food and beverages, including the fish fry.
"We had everybody's safety in mind when we made this decision. The word we get is that Friday night on through Sunday will be pretty dismal, with humongous rain. We didn't people getting hurt by flying tents and stuff," he said.
The Blues Festival headline band is Canned Heat, which was one of the top bands at Woodstock. In fact, Goldberg said, three current members of Canned Heat played with the band at Woodstock.
Canned Heat, listed as a blues and boogie band, has been together since 1965 and Goldberg has some sentimental attachment to the group. It was the first group he booked to play at The Barn, a former concert venue on Galena Road, early in his promoting career.
"They are still really good," he said.
Other artists and bands include Curtis Salgado, Lil Ed and the Blues Imperials, Dave Chastain (who opens the festival at 7 p.m. Friday), Duke Robillard and many others. In the Blues Tent on Saturday will be workshop on the harp at 2 p.m., acoustic blues at 4 p.m. and electric Chicago blues at 5 p.m.
There will still be three stages, as had been planned for the riverfront, with the main stage moving to the main building at Expo Gardens and the International Blues Challenge competition to the Opera House. The competition will start at 7:15 p.m. Friday. The third stage will be in a tent between the two buildings.
Goldberg said tickets already purchased for the festival will be honored at Expo Gardens. Tickets are $15 in advance and $20 at the door for Friday, and $20 in advance and $25 at the door on Saturday. Two-day tickets are $25 in advance and $30 at the door. Advance tickets can be purchased at the Visitor's Center on the riverfront, at Co-op Records in Peoria, East Peoria and Pekin, at Shandi's in Washington and Canton or by calling (800) 514-3849.
Doors will open at 6 p.m. on Friday and noon on Saturday.
For the moe. concert on Sunday, previously purchased tickets will be honored. Tickets are $22 in advance and $25 at the door.
The doors will open at 6:30 p.m. with the concert at 7:30 p.m.
moe., which started as a bar band in Buffalo, N.Y., has become one of the preeminent progressive rock bands in the country. It has 17 albums to its credit and has become a headliner in New York City.
Paul Gordon is editor of The Peorian. He can be reached at 692-7880 or editor@thepeorian.com
