The Rising Influence of Rising Affluence

[DewDiligence]

CAT’s power-generating equipment falls within its Energy & Transportation segment, which accounted for 34% of CAT’s revenue in 1Q23 (excluding revenue from the captive finance subsidiary). This is the description of the E&T segment from CAT’s 1Q23 10-Q [emphasis added]:

https://www.sec.gov/ix?doc=/Archives/edgar/data/0000018230/000001823023000022/cat-20230331.htm (p.27)

Energy & Transportation: A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses.

…The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Cat machinery; electrified powertrain and zero-emission power sources and service solutions development; and diesel-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing.

Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies; and product support of on-highway vocational trucks for North America.