Caterpillar Urges Stronger Trade Relationship Between the United States and China; Company Expects Exports From U.S. to China to Increase in 2011

PEORIA, Ill., Jan. 21, 2011 /PRNewswire/ -- Citing the global importance of continued growth in trade between the United States and China, Caterpillar Inc. (NYSE: CAT) today called for stronger efforts to strengthen the economic relationship between the two countries.  China is one of the largest export markets for Caterpillar products made in the United States, with exports to China of more than $2 billion dollars in the last five years.

"For decades, Caterpillar has competed in markets around the world, focusing on providing customers the products and services that will make them more successful," said Caterpillar Chairman and CEO Doug Oberhelman.  "As China has opened its door to international trade and investment over the last 30 years, Caterpillar has implemented its business model to serve customers in China.  This business model focuses on providing customers the lowest owning and operating costs in our industry.  We welcome free and fair competition— competition that makes all companies in our industry stronger and better and ultimately benefits customers."

On Friday, Caterpillar officials signed a memorandum of understanding (MOU) as part of a U.S.-China Trade and Economic Forum in connection with the visit to Chicago of Chinese President Hu Jintao.  The MOU outlines the importance of maintaining a positive trade environment between the Unites States and China, emphasizes how Caterpillar's exports to China support jobs in the United States and stresses that mutually beneficial trade policies will support greater U.S. exports from Caterpillar in the years to come.  

"We realize there are important and substantive issues that exist between the United States and China, from currency valuations to the protection of intellectual property, and that these need to be resolved with a sense of urgency," said Rich Lavin, Caterpillar group president with responsibility for growth markets, including China. "But we also know the way we resolve disagreements is important.  Caterpillar will continue to urge policymakers in both the United States and China to resolve differences in an atmosphere of mutual respect— not by threatening a trade war.  We continue to believe that quiet diplomacy and multilateral forums offer a preferred path for resolving differences," Lavin added.

In recent years, Caterpillar and its independent dealers have made significant investments to expand the range of products and components produced in China, increase and improve customer support services and expand and enhance dealer coverage in every province.  Today, Caterpillar has more than 7,700 employees across China at 11 manufacturing facilities, three research and development centers, nine offices and two logistics and parts centers.

About Caterpillar:

For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive 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, industrial gas turbines and diesel-electric locomotives.  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.caterpillar.com.

Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are subject to 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. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements.  All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and Caterpillar does not undertake to update its forward-looking statements.

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, including, but not limited to: (i) economic volatility in the global economy generally and in capital and credit markets; (ii) Caterpillar's ability to generate cash from operations, secure external funding for operations and manage liquidity needs; (iii) adverse changes in the economic conditions of the industries or markets Caterpillar serves; (iv) government regulations or policies, including those affecting interest rates, liquidity, access to capital and government spending on infrastructure development; (v) commodity price increases and/or limited availability of raw materials and component products, including steel; (vi) compliance costs associated with environmental laws and regulations; (vii) Caterpillar's and Cat Financial's ability to maintain their respective credit ratings, material increases in either company's cost of borrowing or an inability of either company to access capital markets; (viii) financial condition and credit worthiness of Cat Financial's customers; (ix) material adverse changes in our customers' access to liquidity and capital; (x) market acceptance of Caterpillar's products and services; (xi) effects of changes in the competitive environment, which may include decreased market share, lack of acceptance of price increases, and/or negative changes to our geographic and product mix of sales; (xii) Caterpillar's ability to successfully implement Caterpillar Production System or other productivity initiatives; (xiii) international trade and investment policies, such as import quotas, capital controls or tariffs; (xiv) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xv) adverse changes in sourcing practices for our dealers or original equipment manufacturers; (xvi) additional tax expense or exposure; (xvii) political and economic risks associated with our global operations, including changes in laws, regulations or government policies, currency restrictions, restrictions on repatriation of earnings, burdensome tariffs or quotas, national and international conflict, including terrorist acts and political and economic instability or civil unrest in the countries in which Caterpillar operates; (xviii) currency fluctuations, particularly increases and decreases in the U.S. dollar against other currencies; (xix) increased payment obligations under our pension plans; (xx) the possibility that the acquisition by Caterpillar of Bucyrus International, Inc. does not close for any reason, including, but not limited to, a failure to obtain required regulatory approvals, (xxi) inability to successfully integrate and realize expected benefits from acquisitions; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) imposition of significant costs or restrictions due to the enactment and implementation of health care reform legislation and financial regulation legislation; (xxiv) changes in accounting standards or adoption of new accounting standards; (xxv) adverse effects of natural disasters; and (xxvi) other factors described in more detail under "Item 1A.  Risk Factors" in Part I of our Form 10-K filed with the SEC on February 19, 2010 for the year ended December 31, 2009 and in Part II of our Form 10-Q filed with the SEC on May 3, 2010 for the quarter ended March 31, 2010.  These filings are available on our website at http://www.caterpillar.com/secfilings.  

SOURCE Caterpillar Inc.