Attached files
| file | filename |
|---|---|
| 8-K - 8-K RE: TIER 4 - CATERPILLAR INC | form8k_021110.htm |
| 8-K - CATERPILLAR INC | form8k_021110.pdf |
EXHIBIT
99.1
 |
News
|
February 11,
2010
Caterpillar
contact:
Kate
Kenny
Corporate Public
Affairs
(309)
636-5253
Kenny_Kate@cat.com
FOR
IMMEDIATE RELEASE
Caterpillar Showcases Tier 4
Interim//Stage IIIB Readiness
and
Leadership
Customer-driven
system design is tailored to lead the industry in Technology, Sustainability and
Profitability
PEORIA, Ill. – Unveiling the next
generation of industry leading products, Caterpillar Inc. (NYSE: CAT) is
showcasing its Tier 4 Interim//Stage IIIB readiness at an emissions strategy
update event for industry professionals at the company’s Edwards, Illinois,
Learning and Demonstration facility. Caterpillar’s Tier 4
Interim//Stage IIIB engine technology includes state- of-the-art integrated
system design built upon the success of the company’s ACERT
technology. Additional technologies, including powertrain innovation
and aftertreatment devices, will be specifically tailored and applied to
products to provide maximum value to customers while meeting the stringent
emission requirements mandated by law.
“Our Tier 4
Interim//Stage IIIB products will be delivered on time, on cost and with the
quality, durability and reliability our customers expect and deserve,” said
Caterpillar Group President, Stu Levenick. “Tier 4 Interim//Stage
IIIB is the most aggressive and expensive product development initiative in
Caterpillar history. We began this journey with Tier 1 in 1996, and
with each new tier we continue to build upon our proven technologies, product
development and strong dealer network.”
Caterpillar's
significant research and development costs are primarily due to the new product introduction programs related to
Tier 4 Interim//Stage IIIB emissions compliance.
“Our pricing strategy will focus on providing customers
with the best value proposition in the market, a broad-based deployment process
that minimizes disruption while at the same time allows the company to recover
significant multi-year costs necessary to meet the new regulations,” said
Levenick. “While the details have not yet been finalized, price actions
associated with recovering the costs of Tier 4 Interim//Stage IIIB for our
machines in the 130-560 kilowatt power range may increase prices by as much as
12 percent over our Tier 4 Interim//Stage IIIB introduction time frame. We
anticipate the first increase, starting January 1, 2011, to be about one third
of the 12 percent increase. Pricing for commercial engine
applications, such as electric power, industrial and petroleum, will vary
depending on product and power range. We plan to initiate
broad-based emissions related price actions also starting January 1, 2011, for
all products, including those utilizing transitional provisions.”
In 2004, the
Environmental Protection Agency and the European Union introduced Tier 4 and
Stage IIIB/IV emission standards respectively, with effective dates ranging from
2008 to 2015. Tier 4//Stage IV standards require emissions of
particulate matter (PM) and oxides of nitrogen (NOx) to be reduced by more than
90 percent.
“It’s not
just about emissions – our focus is on the customer,” said Marketing and Product
Support Vice President, Rod Beeler. “Our ultimate goal is to exceed
expectations by developing products that are safer, more efficient and
environmentally responsible without sacrificing performance.”
It is projected
that Caterpillar will accumulate nearly one million hours of testing on Tier
4 Interim//Stage IIIB engines and machines by the end of 2010.
During the strategy
update, Caterpillar previewed some of its newly developed machines including a
336E Hydraulic Excavator, 140M Motor Grader, 980H Wheel Loader and 775
Off-Highway Truck. The company will also showcase its Tier 4
Interim//Stage IIIB readiness at the international trade show, bauma 2010, this
April in Munich, Germany.
About
Caterpillar:
For more than 80
years, Caterpillar Inc. has been making progress possible and driving positive
and sustainable change on every continent. With 2009 sales and revenues of
$32.396 billion, Caterpillar is the world's leading manufacturer of construction
and mining equipment, diesel and natural gas engines and industrial gas
turbines. The company also is a leading services provider through Caterpillar
Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics
Services and Progress Rail Services. More information is available at
http://www.cat.com.
Safe Harbor
Certain statements in this release relate to future
events and expectations and as such constitute forward-looking statements
involving known and unknown factors that may cause actual results of Caterpillar
Inc. to be different from those expressed or implied in the forward-looking
statements. In this context, words such as "will," "would," "expect,"
"anticipate," "should" or other similar words and phrases often identify
forward-looking statements made on behalf of Caterpillar. It is
important to note that actual results of the company may differ materially from
those described or implied in such forward-looking statements based on a number
of factors and uncertainties, including, but not limited to, (i) adverse change
in general economic conditions; (ii) adverse change in the industries
Caterpillar serves including construction, infrastructure, mining, energy,
marine and electric power generation; (iii) Caterpillar's ability to manage
material, including steel, and freight costs; (iv) Caterpillar's ability to
generate cash from operations, secure external funding for its operations and
manage its liquidity needs; (v) material adverse change in customers' access to
liquidity and capital; (vi) currency exchange or interest rates changes; (vii)
political stability; (viii) market acceptance of the company's products and
services; (ix) significant changes in the competitive environment; (x) epidemic
diseases; (xi) severe change in weather conditions negatively impacting
operations; (xii) changes in law, regulations and tax rates; and (xiii) other
general economic, business and financing conditions and factors described in
more detail in "Item 1A – Risk Factors" in Part II of our Form 10-Q filed with
the SEC on October 30, 2009 for the 3rd quarter of 2009. This filing
is available on our website at www.cat.com/sec_filings. We do not undertake to update our
forward-looking statements.