ENERGY & TRANSPORTATION

Supporting Diverse Customers by Optimizing Value

Our Energy & Transportation segment is helping to meet the demands of a growing global population. We serve customers in oil and gas, power generation, marine, rail and industrial applications. Our product and service portfolio includes reciprocating engines, generator sets, marine propulsion systems, gas turbines and turbinerelated services, diesel-electric locomotives and other rail-related products and services.

MARKET FUNDAMENTALS

While low oil prices in 2016 directly impacted the oil and gas business, lower oil prices also drove lower sales in Marine, due to fewer work boats to support off-shore oil platforms, lower Power Generation sales to oil producing countries and fewer locomotives in service, driving lower service activity in Rail. However, Energy & Transportation continued to benefit from robust demand for gas compression across North America. In addition, Rail launched its Tier 4 locomotive in the second half of 2016 and sold its first passenger locomotives to a customer in the U.S.

2016 HIGHLIGHTS

  • Introduced three new Tier 4 products: the EMD F125 passenger locomotive, the EMD SD70ACe-T4 freight locomotive and the EMD24B repower switch locomotive, meeting the needs of our customers in the areas of sustainability, reliability, safety and performance.
  • Established a new Marine Center in Singapore to house the Propulsion Systems Solutions team and build the company’s range of Cat® Azimuth Thrusters and Cat® Transverse Thrusters.
  • Released two state-of-the-art generator sets – the Cat® G3512, the first natural gas generator set engineered to meet a full suite of standby market requirements, and the Cat® 3516E diesel generator set with a 3,000 kVA standby rating, the lowest footprint and weight in its power range.
  • Launched Cat® Microgrid technology, designed to integrate renewable energy sources, including solar solutions with reliable Cat® gas and diesel generator sets.
  • Acquired Kemper Valve & Fittings Corp, expanding our suite of well service products by providing highpressure flow iron and industry solutions.
  • Announced the introduction of the new Perkins® Syncro compact engine line and Cat® C9.3B engines, providing customers with a competitive full product line and improving power density and engine performance.
  • Introduced the new Solar Turbines Solar Modular Compression Solution, providing customers with greater schedule and cost predictability for projects.

HELPING TO MEET THE WORLD’S ENERGY NEEDS

As global energy demand increases over the next several decades, the absolute amount of fossil fuels needed to keep pace with demand will also rise. Our product portfolio participates across a wide portion of the oil and gas value chain.