Caterpillar Announces New Organizational Structure for Mining and Customer and Dealer-Facing Divisions; Focus on Innovation and Data Analytics Remains a Key Priority
PEORIA, Ill., Sept. 24, 2015 -- Building on its 90-year history of providing unmatched product support around the world, Caterpillar Inc. (NYSE: CAT) today announced a reorganization in its dealer and customer support divisions. These changes are designed to improve and speed the delivery of customer support while simplifying the way Caterpillar interacts with its global dealer network.
"These organizational changes will drive needed simplicity to the business, further enabling us to meet customer and dealer needs by becoming more nimble, lean and responsive," said Rob Charter, Caterpillar group president with responsibility for Customer & Dealer Support. "Our dealers are the best in the industry when it comes to knowing and serving our customers. These changes will help Caterpillar increase accountability at the divisional level and continue to differentiate the Caterpillar business model from our competitors."
The company is also placing added executive office emphasis on three strategic initiatives – data analytics, digital and innovation capabilities; Lean Transformation; and the Across the Table initiative. Having this additional, executive office focus complements the new structure of Caterpillar's customer and dealer-facing divisions.
Mining Division Changes
As previously announced, Chris Curfman, vice president with responsibility for Caterpillar's Mining Sales & Support Division is retiring, effective December 31, 2015. His division will be integrated into the existing Global Mining machine business divisions. Bringing product, operations, sales and marketing organizations together in both the surface and underground mining applications aligns well with our customers and will also enable a more effective cost structure in a challenging mining environment.
The surface mining sales and support teams will join the Hauling & Extraction Division, which will be renamed the Surface Mining & Technology Division, led by Caterpillar Vice President Tom Bluth.
The underground mining sales and support teams will join the Material Handling and Underground Division, led by Caterpillar Vice President Denise Johnson.
Customer and Dealer-Facing Organizational Changes
The company is reorganizing divisions across the company into a new structure that will improve efficiency and reduce complexity. This new organizational structure will enable the company to more quickly deliver on its previously announced Across the Table goals.
"Our team will be more responsive, agile and better positioned to work with our dealers as we serve our customers," Charter said.
- Distribution Services Divisions – the primary interface with our dealers, these divisions will remain but be reduced to two from three. The two groups will maintain sole responsibility for dealer development and performance, succession and continuity, along with portfolio management, operational excellence and Across the Table strategy execution.
- Asia Pacific, CIS, Africa & Middle East Distribution Division, Vice President Raymond Chan – covers dealers in Asia-Pacific, CIS, Africa and the Middle East.
- Americas & Europe Distribution Division, Vice President Phil Kelliher – covers dealers in North and South America and Europe.
- Global Aftermarket Solutions Division, Vice President Nigel Lewis – new organization created to accelerate the growth of aftermarket sales and service solutions. This organization combines the aftermarket sales and marketing resources, with a focus on improving and growing aftermarket sales and service for Resource Industries, Construction Industries and Energy & Transportation, including Cat Work Tools and Cat Reman products.
- Wear Components & Aftermarket Distribution Division, Vice President Doug Hoerr – new division that merges the design and manufacturing of components and aftermarket distribution into one division to enhance the company's focus on components availability and inventory improvements. This organization will be closely aligned with the Global Aftermarket Solutions Division to ensure product offerings meet or exceed customer and dealer expectations.
- Marketing and Digital Division, Vice President George Taylor – newly created division that builds on the current Analytics & Innovation Division. Taylor, who has also been named Caterpillar's Chief Marketing Officer, and his team will establish a go-to-market strategy for the integration of data analytics, providing state-of the-art solutions and support for customers and dealers. In addition to the digital transformation of the dealer and customer experience, the division's functions include global brand management, marketing, rental services and retail sales development.
- Sustainable, Work Tools & Industry Solutions Division, Vice President Greg Folley – new division that brings together the sustainable businesses of Cat Reman and Caterpillar Safety Services with the company's machine attachment business – Cat Work Tools (design and manufacture). The new division also includes two external sales groups, Cat OEM Solutions and Defense and Federal Products.
Construction Industries Update
In addition to these changes, the Global Construction & Infrastructure Division, led by Vice President Paolo Fellin, has added responsibilities. As part of the company's move to improve its dealer and customer coverage model, the division will also assume sales responsibilities for work tools, industrial and waste, paving and forestry products, as well as responsibility for heavy rentals.
The above moves will be effective November 1, 2015.
For 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2014 sales and revenues of $55.184 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) government monetary or fiscal policies and infrastructure spending; (iii) commodity price changes, component price increases, fluctuations in demand for our products or significant shortages of component products; (iv) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (v) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (vi) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (vii) our Financial Products segment's risks associated with the financial services industry; (viii) changes in interest rates or market liquidity conditions; (ix) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (x) new regulations or changes in financial services regulations; (xi) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xii) international trade policies and their impact on demand for our products and our competitive position; (xiii) our ability to develop, produce and market quality products that meet our customers' needs; (xiv) the impact of the highly competitive environment in which we operate on our sales and pricing; (xv) failure to realize all of the anticipated benefits from initiatives to increase our productivity, efficiency and cash flow and to reduce costs; (xvi) additional restructuring costs or a failure to realize anticipated savings or benefits from past or future cost reduction actions; (xvii) inventory management decisions and sourcing practices of our dealers and our OEM customers; (xviii) compliance with environmental laws and regulations; (xix) alleged or actual violations of trade or anti-corruption laws and regulations; (xx) additional tax expense or exposure; (xxi) currency fluctuations; (xxii) our or Cat Financial's compliance with financial covenants; (xxiii) increased pension plan funding obligations; (xxiv) union disputes or other employee relations issues; (xxv) significant legal proceedings, claims, lawsuits or government investigations; (xxvi) changes in accounting standards; (xxvii) failure or breach of IT security; (xxviii) adverse effects of unexpected events including natural disasters; and (xxix) other factors described in more detail under "Item 1A. Risk Factors" in our Form 10-K filed with the SEC on February 17, 2015, for the year ended December 31, 2014.
CONTACT: Rachel Potts, Global Government & Corporate Affairs, 309-675-6892, Potts_Rachel_A@cat.com
SOURCE Caterpillar Inc.