Caterpillar Group President Stu Levenick Addresses the Japanese Business Press

"Japan is an important market for Caterpillar and plays a key role in our enterprise strategy and our focus on being the market leader in the Asia-Pacific region," said Group President Stu Levenick to an assembled group of Japanese business press on November 7 at the Imperial Hotel in Tokyo.

In reflecting on the economic outlook for 2012, Levenick said, "I think it's safe to say, we're cautiously optimistic about the future. There is still much uncertainty in the world and in the industries we serve, but there are bright spots everywhere. Perhaps nowhere is that more apparent than here in Japan. Japan's economy has declined for three quarters, due in large part to the terrible natural disasters that hit in March. We expect increased government spending and near record banking liquidity to enable a continuing recovery in Japan through the second half of 2011 and will likely lead to about 4 percent economic growth in 2012. We also expect the world economy will continue to recover in 2012, with growth improving to about 3.5 percent. The United States and Japan should account for much of the improvement."

Levenick spoke to the Japanese press as part of his visit to Japan that included meetings with the Caterpillar Japan Ltd. leadership team and key customer Tanaka Sangyo. He also took the time to reflect on the earthquake and tsunami that devastated the eastern coast of Japan earlier this year.

"The entire Caterpillar family, along with the rest of the world, was truly saddened by the horrible devastation and loss of life. That's not something any of us will ever forget," said Levenick. "I'm extremely proud of the over 6,000 employees of Caterpillar Japan Ltd. They exemplify the Caterpillar team spirit. They've responded to this crisis with resolve, an unbroken spirit and great compassion. They showed the world what it means to act with strength and dignity."

He went on to praise the team's efforts following the disaster.

"Thanks to their leadership and the support of Caterpillar teams from around the world, production at both Sagami and Akashi was back to pre-disaster levels by June. That is a remarkable achievement! Both our Sagami and Akashi facilities and their suppliers are working hard to make up for the production lost during the disaster. This is truly a testament to the strength of character, high work ethic and strong resiliency of the Japanese people, our Sagami and Akashi employees, and our suppliers."

Levenick concluded his remarks by emphasizing Caterpillar's ongoing commitment to serving our customers in the region.

"Since we first established a presence in Japan in 1963 with our Caterpillar Mitsubishi Ltd. joint venture, we've been dedicated to providing our customers inside Japan and throughout Asia with the highest quality products and services in the industry," he said.

"We recently re-aligned our organizational structure in Cat Japan to better align with our enterprise strategy that is focused on serving our customers faster, better and more efficiently and delivering on Caterpillar's fundamental Value Proposition - which is delivering products and services which represent the best return on investment over the life of the product. This reorganization puts us closer to our customers and our dealers and allows us to better leverage the vast experience and expertise of our Japanese employees not only within the region, but also throughout the entire Caterpillar global enterprise. It provides a competitive advantage that cannot be matched by anyone in the region."

"Our Japanese customers are some of the most advanced and discerning in world. That's why we are proud to offer the demanding Japanese customers the best line of sustainable products, services, and support available anywhere. But we will never take this for granted, and we will constantly look for ways to serve our customers better and make them more successful. We know our customers have a choice—they can buy equipment from Hitachi, Komatsu, or any other competitor. We want Caterpillar to be the clear choice every time. We have the quality products, services and solutions that the others simply can't match - and maybe most important…all backed by the world-class Caterpillar dealer network that is second to none. Our goal is to win everywhere we compete - that includes the highly competitive Japanese market. We look forward to serving our customers and being the industry leader in Japan for a long time to come."