Caterpillar sees softer demand in 2014

Dec 05, 2013 | 02:36 PM | Corinna Petry

Tags  Caterpillar Inc., endmarket forecast, oil and gas turbine market, locomotive market, LNG-powered locomotive, mining equipment market, Credit Suisse Industrials Conference, Mike DeWalt Jim Umpley

CHICAGO — Caterpillar Inc. expects flat to slower business activity across its energy, power systems, rail and mining equipment segments next year.

The company will continue to consolidate its mining equipment manufacturing capacity, strategic services vice president Mike DeWalt said Dec. 4 during Credit Suisse’s Industrials Conference.

Capacity added in the last up cycle was meant to get "more production out of existing facilities," he said, adding that the Peoria, Ill.-based company did not open new plants and does not have multiple facilities doing the same job. While Caterpillar "certainly (has) a lot more capacity than what we’re producing and selling, it does not follow that we should rip out an assembly line and throw the equipment away. That really doesn’t buy you anything."....

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