Caterpillar Subsidiary Progress Rail Acquires FCM Rail

ALBERTVILLE, Ala., May 7 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE: CAT) announced today that Progress Rail Leasing Corporation, a wholly-owned subsidiary of Progress Rail Services, a division of Caterpillar, has acquired FCM Rail, Ltd. (FCM).  Based in Fenton, Michigan, FCM is a leading lessor of maintenance-of-way (MOW) equipment in the United States.  The acquisition strengthens Progress Rail's existing position in the MOW industry by expanding its service offerings.  

Incorporated in 1979, FCM specializes in MOW leasing, total equipment solutions with warehouse leasing and short- and long-term equipment rentals.  Its extensive equipment portfolio includes tampers, ballast regulators, spikers, spike pullers, anchor applicators, track stabilizers, undercutters and various other railroad and track maintenance equipment.

"We are proud to announce the addition of FCM to the Progress Rail family," said Dave Roeder, senior vice president of Engineering and Track Services at Progress Rail.  "FCM is a well-known leader in the MOW leasing sector, and the company's excellent reputation will further enhance Progress Rail's position as a key player in the MOW market."

Through this acquisition, Progress Rail Services will be able to better serve customers with an expanded leasing portfolio and cost-effective maintenance solutions.

"FCM is excited to join one of the premier companies in the railroad industry and become part of the Caterpillar family of companies," said Denny Gilstad, former chairman and chief executive officer of FCM, who will remain as a consultant to Progress Rail.  

Trent Marshall will succeed Gilstad as President of FCM, and FCM's headquarters will remain in Fenton, Michigan.

About Caterpillar:

For more than 85 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable 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 and industrial gas turbines.  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.cat.com.

About Progress Rail:

Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. We serve our customers through a network of more than 125 locations across the United States, Canada, Mexico, Brazil, Italy, Germany and the United Kingdom, with more than 4,300 employees. Progress Rail Services is headquartered in Albertville, Alabama. For more information, visit www.progressrail.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) inability to successfully integrate and realize expected benefits from acquisitions; (xxi) significant legal proceedings, claims, lawsuits or investigations; (xxii) imposition of significant costs or restrictions due to the enactment and implementation of healthcare reform legislation and proposed financial regulation legislation; (xxiii) changes in accounting standards or adoption of new accounting standards;  (xxiv) adverse effects of natural disasters; and (xxv) other factors described in more detail in "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.  This filing is available on our website at www.cat.com/sec_filings.  

SOURCE Caterpillar Inc.