Caterpillar 4Q15 Earnings Call Notes

Doug Oberhelman

Cat financial asset quality has stayed strong

“Actually in 2015 they hit a very high market share number for what they financed. The quality of that asset portfolio is very good, past due has actually improved a little bit from 2014. ”

Want to create the internet of Caterpillar things

“What we are aiming at is quite a bit different than others. I would say we’re aiming at the internet of Caterpillar things, so that when we think about what we’re doing with digital technology, what we’re doing with site preparation and technology, machine guidance technology, machine health technology, it’s all about our installed base of the 3 million machines and engines. Rail, construction, mining the things we do.”

Lots of sensors across our machines

“We have knowledge of our machines. Our idea is to make a ready platform, lots of sensors across our machines and other brands to make sure that our customer gets the most out of their construction equipment in his or her fleet. I suspect that in the next year or two, five [ph] this will be a tremendous and we’ll be talking a lot more to you about it in our investor meetings and so on as we get there.”


Done pretty well with material costs

“Hey, Rob this is Mike, I’ll start this out. I’m going to start a little bit with material costs. We’ve done actually very well over the last, I don’t know three, four years on material cost. I think we in combination taken out over $1 billion. So over that timeframe and last year ’15 was a good chunk of that. So it’s been a combination of actually lower commodity prices have helped some. But all the work we’ve done on lean, resourcing, engineered value change, our investments in R&D, our partnerships with suppliers, that helped generated a pretty good chunk of that cost reduction as well.”