Caterpillar Inc is the world's largest construction-equipment manufacturer. In 2018, Caterpillar was ranked number 65 on the Fortune 500 list and number 238 on the Global Fortune 500 list. Caterpillar stock is a component of the Dow Jones Industrial Average.
Caterpillar has been in China for more than 45 years, its core products manufactured in China include hydraulic excavators, track-type tractors, wheel loaders, soil compactors, motor graders, paving products, medium and large diesel engines and generator sets. Caterpillar also manufactures components at several facilities in China. Its manufacturing factories in China are located in Suzhou, Wujiang, Qingzhou, Wuxi, Xuzhou, and Tianjin.
Caterpillar’s full-year sales and revenues in 2020 were $41.7 billion, down 22% compared with $53.8 billion in 2019. The sales decline reflected lower end-user demand and dealers reducing their inventories by $2.9 billion in 2020. Operating profit margin was 10.9% for 2020, compared with 15.4% for 2019. Full-year profit was $5.46 per share in 2020, compared with profit of $10.74 per share in 2019. Adjusted profit per share in 2020 was $6.56, compared with adjusted profit per share of $11.40 in 2019.
The decrease was due to lower sales volume, driven by the impact from changes in dealer inventories and slightly lower end-user demand. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.
But in China Caterpillar has increased production volume to export globally due to coronavirus situation, HYWG OTR rim volume to Caterpillar has increased 30% since 2nd half of 2020.
While there’s no denying the COVID-19 pandemic will have an adverse effect on Caterpillar’s business (revenue was down 22% year-over-year in 2020), the long-term demand for Caterpillar’s products remains strong. Grand View Research, an industry research provider, expects the Global Construction Equipment market to grow from $125 billion in 2019 to $173 billion in 2027, or 4.3% compounded annually. Caterpillar’s financial strength and profitability positions the firm to not just survive the downturn, but to expand its market presence during a recovery.
Since 2012 HYWG has been official Caterpillar OE supplier for OTR rims, HYWG’s top quality, full range of products have been proven by global OE leader like Caterpillar. In 2020 Oct, HYWG (Hongyuan Wheel Group) opened another new factory in Jiazuo Henan for industrial and forklift rims, the annual production capacity is designed as 500,000 pcs. HYWG is clearly the No.1 OTR rim manufacturer in China, and is aiming to become top 3 in the world.
Post time: Mar-15-2021