Caterpillar
CAT
#37
Rank
ยฃ293.50 B
Marketcap
ยฃ638.51
Share price
2.31%
Change (1 day)
72.29%
Change (1 year)

Caterpillar Inc. is the world's largest construction equipment manufacturer with headquarters in Peoria, Illinois. In addition to construction machinery, Caterpillar also manufactures diesel engines, gas engines and industrial gas turbines.

Text size:
<HTML>
<HEAD>
<TITLE>FORM 10-K</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">
<HR SIZE=5> <P ALIGN=CENTER><FONT
SIZE=3>SECURITIES AND EXCHANGE COMMISSION </FONT>
<BR>
<FONT
SIZE=2>Washington, D.C. 20549 </FONT></P>
<P ALIGN="center"><B>[CATERPILLAR LOGO]</B></P>
<P ALIGN=CENTER><FONT
SIZE=3><B>FORM 10-K</B></FONT></P>
<H2 ALIGN=LEFT><FONT
SIZE=2>(Mark One)</FONT></H2>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>[X] </FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
<BR>
For the fiscal year ended December 31, 1999</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0" BORDER="0">
<TR VALIGN=TOP>
<TD> <P ALIGN=CENTER><FONT
SIZE=2>OR </FONT></P>

<BR>
</TD>
</TR>
</TABLE>

<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>[&nbsp;&nbsp;&nbsp;]</FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2> TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
<BR>
For the transition period from __________ to __________.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0" BORDER="0">
<TR VALIGN=TOP>
<TD> <P ALIGN=CENTER><FONT
SIZE=2>Commission File No. 1-768 </FONT></P>
<P ALIGN=CENTER><FONT
SIZE=4><B>CATERPILLAR INC.</B></FONT>
<BR>
<FONT
SIZE=2>(Exact name of Registrant as specified in its charter) </FONT></P>
<P ALIGN=CENTER><FONT
SIZE=2>Delaware </FONT>
<BR>
<FONT
SIZE=2>(State or other jurisdiction of incorporation) </FONT></P>
</TABLE>

<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=50%><FONT
SIZE=2>1-768
<BR>
(Commission File Number)
<BR>

<BR>
100 NE Adams Street, Peoria, Illinois
<BR>
(Address of principal executive offices)</FONT></TD>
<TD ALIGN=CENTER WIDTH=50%><FONT
SIZE=2>37-0602744
<BR>
(IRS Employer I.D. No.)
<BR>

<BR>
61629
<BR>
(Zip Code)</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0" BORDER="0">
<TR VALIGN=TOP>
<TD> <P ALIGN=CENTER><FONT
SIZE=2>Registrant&#146;s telephone number, including area code: (309)
675-1000 </FONT></P>
<HR SIZE=5> </TD>
</TR>
</TABLE>

<TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0" BORDER="0">
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> <P><FONT
SIZE=2>Securities registered pursuant to Section 12(b) of the Act:
</FONT></P>
</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="75%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="5%"><FONT
SIZE=2></FONT></TD>
<TD ALIGN="LEFT" WIDTH="43%"><FONT
SIZE=2>
<BR>
<B>Title of each class</B>
<BR>
</FONT> <HR SIZE=1 WIDTH=90%> <FONT
SIZE=2> Common Stock ($1.00 par value)
<BR>

<BR>

<BR>
Preferred Stock Purchase Rights
<BR>

<BR>

<BR>
9 3/8% Notes due July 15, 2000
<BR>
9 3/8% Notes due July 15, 2001
<BR>
9% Debentures due April 15, 2006
<BR>
6% Debentures due May 1, 2007
<BR>
9 3/8% Debentures due August 15, 2011
<BR>
9 3/4% Sinking Fund Debentures due &nbsp;June 1, 2019
<BR>
9 3/8% Debentures due March 15, 2021
<BR>
8% Debentures due February 15, 2023</FONT></TD>
<TD ALIGN="LEFT" WIDTH="5%"><FONT
SIZE=2></FONT></TD>
<TD ALIGN="LEFT" WIDTH="42%"><FONT
SIZE=2><B>Name of each exchange
<BR>
on which registered</B>
<BR>
</FONT> <HR SIZE=1 WIDTH=90%> <FONT
SIZE=2> Chicago Stock Exchange
<BR>
New York Stock Exchange
<BR>
Pacific Exchange, Inc.
<BR>
Chicago Stock Exchange
<BR>
New York Stock Exchange
<BR>
Pacific Exchange, Inc.
<BR>
New York Stock Exchange
<BR>
New York Stock Exchange
<BR>
New York Stock Exchange
<BR>
New York Stock Exchange
<BR>
New York Stock Exchange
<BR>
New York Stock Exchange
<BR>
New York Stock Exchange
<BR>
New York Stock Exchange</FONT></TD>
<TD ALIGN="LEFT" WIDTH="5%"><FONT
SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0" BORDER="0">
<TR VALIGN=TOP>
<TD> <P><FONT
SIZE=2>Securities registered pursuant to Section 12(g) of the Act:&nbsp;
&nbsp;&nbsp;NONE </FONT></P>
<P><FONT
SIZE=2>Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.&nbsp;
&nbsp;&nbsp;Yes |X| No |_|. </FONT></P>
<P><FONT
SIZE=2>Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of Registrant&#146;s knowledge, in definitive
proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K.&nbsp;&nbsp;&nbsp;|_|
</FONT></P>
<P><FONT
SIZE=2>As of December 31, 1999, there were 353,777,881 shares of common
stock of the Registrant outstanding, and the aggregate market value of
the voting stock held by non-affiliates of the Registrant (assuming only
for purposes of this computation that directors and officers may be
affiliates) was $16,432,866,117. </FONT></P>

<A NAME="A009"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>Documents Incorporated by Reference</FONT></H2>
<P><FONT
SIZE=2>Portions of the documents listed below have been incorporated by
reference into the indicated parts of this Form 10-K, as specified in the
responses to the item numbers involved. </FONT></P>
</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2>&#149; </FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=91%><FONT
SIZE=2>2000 Annual Meeting Proxy Statement (&#147;Proxy Statement&#148;) -
Part III</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2>&#149; </FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=91%><FONT
SIZE=2>Annual Report to Security Holders filed as an appendix to the 2000
Annual Meeting Proxy Statement (&#147;Appendix&#148;) - Parts I, II, and
IV</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0" BORDER="0">
<TR VALIGN=TOP>
<TD> <HR SIZE=5> </TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE>
<A NAME="A010"></A>
<H1 ALIGN=CENTER><FONT
SIZE=2>TABLE OF CONTENTS</FONT></H1>
</TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="599" HEIGHT="532">
<TR VALIGN="BOTTOM">
<TH COLSPAN="2"></TH>
<TH COLSPAN="2"></TH>
<TH COLSPAN="2"></TH>
<TH COLSPAN="2"><FONT
SIZE="2">Page</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="11%" ALIGN="LEFT"><FONT
SIZE="2">Part I</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="LEFT"><FONT
SIZE="2">Item 1.</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="62%" ALIGN="LEFT"><FONT
SIZE="2">Business</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="2%" ALIGN="RIGHT"><FONT
SIZE="2">1</FONT></TD>
<TD WIDTH="2%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 1a.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Executive Officers of the Registrant</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2"></FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;as of December 31, 1999</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">3</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 2.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Properties</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">6</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">Part II</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 5.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Market for Registrant&#146;s Common Equity</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2"></FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;and Related Stockholder Matters</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">8</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 6.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Selected Financial Data</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">8</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 7.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Management&#146;s Discussion and Analysis of</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2"></FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;Financial Condition and Results of
Operations</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">8</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 7a.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Quantitative and Qualitative Disclosures</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2"></FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;About Market Risk</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">11</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 8.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Financial Statements and Supplementary Data</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">11</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">Part III</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 10.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Directors and Executive Officers</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2"></FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;of the Registrant</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">12</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 11.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Executive Compensation</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">12</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 12.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Security Ownership of Certain Beneficial</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2"></FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;Owners and Management</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">12</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">Part IV</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Item 14.</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">Exhibits, Financial Statement Schedules,</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2"></FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;&nbsp;&nbsp;and Reports on Form 8-K</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">12</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE>
<A NAME="A011"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>PART I</FONT></H2>

<A NAME="A012"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 1. Business.</FONT></H2>

<A NAME="A013"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Principal Lines of Business</U></I></FONT></H2>
<P><FONT
SIZE=2>Caterpillar operates in three principal lines of business:
</FONT></P>
</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>1.</FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2> <B><I>Machinery</I>&nbsp;&#151;&nbsp;</B>design, manufacture, and
marketing of construction, mining, agricultural, and forestry machinery
&#151; track and wheel tractors, track and wheel loaders, pipelayers,
motor graders, wheel tractor-scrapers, track and wheel excavators,
backhoe loaders, mining shovels, log skidders, log loaders, off-highway
trucks, articulated trucks, paving products, telescopic handlers, skid
steer loaders, and related parts.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>2.</FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2> <B><I>Engines</I>&nbsp;&#151;&nbsp;</B>design, manufacture, and
marketing of engines for Caterpillar <I>Machinery, </I> on-highway trucks
and locomotives; marine, petroleum, construction, industrial,
agricultural, and other applications; electric power generation systems;
and related parts. Reciprocating engines meet power needs ranging from 5
to over 21,000 horsepower (4 to over 15 660 kilowatts). Turbines range
from 1,340 to 18,000 horsepower (1000 to 13 500 kilowatts).</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>3.</FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2> <B><I>Financial Products</I>&nbsp;&#151;&nbsp;</B>financing to
customers and dealers for the purchase and lease of Caterpillar and
noncompetitive related equipment, as well as some financing for
Caterpillar sales to dealers. Also provides various forms of insurance to
customers and dealers to help support the purchase and lease of our
equipment. This line of business consists primarily of Caterpillar
Financial Services Corporation and its subsidiaries and Caterpillar
Insurance Services Corporation.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P><FONT
SIZE=2>Due to financial information required by Statement of Financial
Accounting Standards No. 131, <I>Disclosures about Segments of an
Enterprise and Related Information, </I>we have also divided our business
into eight operating segments for financial reporting purposes.
Information about our operating segments, including geographic
information, is incorporated by reference from Note 20 of the Notes to
Consolidated Financial Statements on pages A-16 through A-19 of the
Appendix. </FONT></P>

<A NAME="A014"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I>Nature of Operations</I></FONT></H2>
<P><FONT
SIZE=2>We conduct operations in our <I>Machinery and Engines&#146;
</I>lines of business under highly competitive conditions, including
intense price competition. In 1999, price competition, among other
factors such as lower sales volume and an unfavorable change in product
sales mix, had a significant negative impact on our profitability for the
year. </FONT></P>
<P><FONT
SIZE=2>We place great emphasis upon the high quality and performance of our
products and our dealers&#146; service support. Although no one
competitor is believed to produce all of the same types of machines and
engines, there are numerous companies, large and small, which compete
with us in the sale of each of our products. </FONT></P>

<BR>
<P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 1</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> <P><FONT
SIZE=2>Our<I> Financial Products&#146;</I> line of business also conducts
business under highly competitive conditions. Financing for users of
Caterpillar products is available through a variety of competitive
sources, principally commercial banks and finance and leasing companies.
We emphasize prompt and responsive service to meet customer requirements
and offer various financing plans designed to increase the opportunity
for sales of our products and generate financing income for our company.
<I>Financial Products&#146; </I>activity is primarily conducted in the
United States, with additional offices in Asia, Australia, Canada,
Europe, and Latin America. </FONT></P>
<P><FONT
SIZE=2>Information about our operations in 1999 and outlook for 2000,
including risks associated with foreign operations, are incorporated by
reference from &#147;Management&#146;s Discussion and Analysis&#148; on
pages A-21 through A-29 of the Appendix. </FONT></P>

<A NAME="A015"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Acquisitions</U></I></FONT></H2>
<P><FONT
SIZE=2>During the second quarter of 1999 we acquired the remaining 51%
interest in F.G. Wilson. F.G. Wilson is a leading packager of
diesel-powered generator sets. During the first quarter of 1998, we
acquired the net assets of Perkins Ltd. and the stock of several related
subsidiaries for $1.328 billion. Perkins is a leading manufacturer of
small- to medium-sized engines. Both acquisitions were accounted for
using the purchase method of accounting. </FONT></P>

<A NAME="A016"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Dealers</U></I></FONT></H2>
<P><FONT
SIZE=2>Machines are distributed principally through a worldwide
organization of dealers, 63 located in the United States and 144 located
outside the United States. Worldwide, these dealers have more than 1,800
places of business and serve 172 countries. Reciprocating engines are
sold principally through the worldwide dealer organization and to other
manufacturers for use in products manufactured by them. Some of the
reciprocating engines manufactured by Perkins are also sold through their
worldwide distributor network. Our dealers do not deal exclusively with
our products; however, in most cases sales and servicing of our products
are our dealers&#146; principal business. Turbines and large marine
reciprocating engines are sold through sales forces employed by Solar and
MaK, respectively. Occasionally, these employees are assisted by
independent sales representatives. </FONT></P>

<A NAME="A017"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Patents and Trademarks</U></I></FONT></H2>
<P><FONT
SIZE=2>Our products are sold primarily under the marks &#147;Caterpillar,
&#148; &#147;Cat,&#148; design versions of &#147;Cat&#148; and
&#147;Caterpillar,&#148; &#147;Solar,&#148; &#147;Barber-Greene,&#148;
&#147;MaK,&#148; &#147;Perkins,&#148; &#147;F.G. Wilson,&#148; and
&#147;Olympian.&#148; We own a number of patents and trademarks relating
to the products we manufacture, which have been obtained over a period of
years. These patents and trademarks have been of value in the growth of
our business and may continue to be of value in the future. We do not
regard any of our business as being dependent upon any single patent or
group of patents. </FONT></P>

<BR>
<P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 2</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE>
<A NAME="A018"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Research and Development</U></I></FONT></H2>
<P><FONT
SIZE=2>We have always placed strong emphasis on product-oriented research
and engineering relating to the development of new or improved machines,
engines and major components. In 1999, 1998, and 1997, we spent $814
million, $838 million, and $700 million, respectively, on our research
and engineering programs. Of these amounts, $626 million in 1999, $643
million in 1998, and $528 million in 1997 were attributable to new prime
products, major component development and major improvements to existing
products. The remainders were attributable to engineering costs incurred
during the early production phase as well as ongoing efforts to improve
existing products. </FONT></P>

<A NAME="A019"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Employment</U></I></FONT></H2>
<P><FONT
SIZE=2>At December 31, 1999, we employed 66,896 persons of whom 28,517 were
located outside the United States. </FONT></P>

<A NAME="A020"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Sales</U></I></FONT></H2>
<P><FONT
SIZE=2>Sales outside the United States were 50% of consolidated sales for
1999, 49% for 1998, and 51% for 1997. </FONT></P>

<A NAME="A021"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Environmental Matters</U></I></FONT></H2>
<P><FONT
SIZE=2>The company is regulated by federal, state, and international
environmental laws governing our use of substances and control of
emissions. Compliance with these existing laws has not had a material
impact on our capital expenditures, earnings, or competitive position.
</FONT></P>
<P><FONT
SIZE=2>We are cleaning up hazardous waste at a number of locations, often
with other companies, pursuant to federal and state laws. When it is
likely we will pay clean-up costs at a site and those costs can be
estimated, the costs are charged against our earnings. In doing that
estimate, we do not consider amounts expected to be recovered from
insurance companies and others. </FONT></P>
<P><FONT
SIZE=2>The amount set aside for environmental clean-up is not material and
is included in &#147;Accrued expenses&#148; in Statement 3 of the
Appendix. If a range of liability estimates is available on a particular
site, we accrue the lower end of that range. </FONT></P>
<P><FONT
SIZE=2>We cannot estimate costs on sites in the very early stages of
clean-up. Currently, we have five of these sites and there is no more
than a remote chance that a material amount for clean-up will be
required. </FONT></P>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 1a. Executive Officers of the Registrant as of December 31,
1999 (except as noted*)</FONT></H2>
</TD>
</TR>
</TABLE>
<TABLE CELLPADDING="4" CELLSPACING="0" WIDTH="600" BORDER="1">
<TR VALIGN="BOTTOM">
<TH><FONT
SIZE="2">
<BR>

<BR>
Name and Age</FONT></TH>
<TH><FONT
SIZE="2">Present Caterpillar Inc.
<BR>
position and date of
<BR>
initial election</FONT></TH>
<TH><FONT
SIZE="2">Principal positions held during the
<BR>
past five years other than
<BR>
Caterpillar Inc. position currently held</FONT></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Glen A. Barton (60)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Chairman and Chief Executive Officer (1999)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Group President (1990-1998)
<BR>
&#149;&nbsp;&nbsp;Vice Chairman (1998-1999)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Gerald S. Flaherty (61)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Group President (1990)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">James W. Owens (53)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Group President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Vice President (1990-1995)
<BR>
&#149;&nbsp;&nbsp;Chief Financial Officer (1993-1995)</FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 3</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> </TD>
</TR>
</TABLE>
<TABLE CELLPADDING="4" CELLSPACING="0" WIDTH="600" BORDER="1">
<TR VALIGN="BOTTOM">
<TH><FONT
SIZE="2">
<BR>

<BR>
Name and Age</FONT></TH>
<TH><FONT
SIZE="2">Present Caterpillar Inc.
<BR>
position and date of
<BR>
initial election</FONT></TH>
<TH><FONT
SIZE="2">Principal positions held during the
<BR>
past five years other than
<BR>
Caterpillar Inc. position currently held</FONT></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Gerald L. Shaheen (55)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Group President (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Managing Director, Caterpillar Overseas
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;S.A. (1993-1995)
<BR>
&#149;&nbsp;&nbsp;Vice President (1995-1998)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Richard L. Thompson (60)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Group President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Vice President (1989-1995)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">R. Rennie Atterbury III (62)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President, General
<BR>
Counsel and Secretary (1991)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">James W. Baldwin (62)*</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1991)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Sidney C. Banwart (54)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Product Manager, Motor Graders,
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Decatur Plant (1993-1995)
<BR>
&#149;&nbsp;&nbsp;General Manager, Lafayette Plant (1995-&nbsp;&nbsp;&nbsp;
&nbsp;1998)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vito H. Baumgartner (59)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1990)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Chairman, Caterpillar Overseas S.A.
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1990-present)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Michael J. Baunton (48)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;President, Walker Manufacturing (1993-&nbsp;
&nbsp;&nbsp;&nbsp;1995)
<BR>
&#149;&nbsp;&nbsp;Group Chief Executive, Perkins Group
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Ltd. (1995-1996)
<BR>
&#149;&nbsp;&nbsp;Divisional Managing Director, Varity
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Perkins (1996-1998)
<BR>
&#149;&nbsp;&nbsp;President, Perkins Engine Company Limited
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1998-present)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">James S. Beard (58)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1990)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;President, Caterpillar Financial Services
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Corporation (1987-present)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Richard A. Benson (56)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1989)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;President, Caterpillar Industrial Inc.
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1989-present)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">James E. Despain (62)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1990)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Michael A. Flexsenhar (60)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;General Manager, Large Engines, Lafayette
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Plant (1991-1995)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Donald M. Ings (51)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1993)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;President, Solar Turbines Incorporated
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1993-1998)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Stuart L. Levenick (46)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1/2000)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Regional Manager, Caterpillar Asia Pte.
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Ltd. (1995-1998)
<BR>
&#149;&nbsp;&nbsp;General Manager, Commonwealth of
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Independent States, Caterpillar
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Overseas S.A. (1998-1999)
<BR>
&#149;&nbsp;&nbsp;Chairman, Shin Caterpillar Mitsubishi
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Ltd.(1/2000-present)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Duane H. Livingston (58)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Director of Corporate Auditing, Corporate
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Services Division (1991-1995)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Robert R. Macier (51)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Business Unit Manager, Joliet
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Plant (1994-1998)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">David A. McKie (55)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;General Manager, Small Engines,
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Mossville Plant (1991-1995)
<BR>
&#149;&nbsp;&nbsp;Managing Director, Caterpillar
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Belgium S.A. (1995-1998)</FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 4</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE>
<BR>
</TD>
</TR>
</TABLE>
<TABLE CELLPADDING="4" CELLSPACING="0" WIDTH="600" BORDER="1">
<TR VALIGN="BOTTOM">
<TH><FONT
SIZE="2">
<BR>

<BR>
Name and Age</FONT></TH>
<TH><FONT
SIZE="2">Present Caterpillar Inc.
<BR>
position and date of
<BR>
initial election</FONT></TH>
<TH><FONT
SIZE="2">Principal positions held during the
<BR>
past five years other than
<BR>
Caterpillar Inc. position currently held</FONT></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">F. Lynn McPheeters (57)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President and Chief Financial Officer (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Executive Vice President, Caterpillar &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Financial
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Services Corporation (1990-1996)
<BR>
&#149;&nbsp;&nbsp;Treasurer (1996-1998)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Daniel M. Murphy (52)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1996)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Product Manager, Excavators, Aurora
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Plant (1990-1996)
<BR>
&#149;&nbsp;&nbsp;General Manager, Mossville Plant (1996)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Douglas R. Oberhelman (46)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Managing Director and Vice General
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Manager, Strategic Planning, Shin
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Caterpillar Mitsubishi Ltd. (1991-1995)
<BR>
&#149;&nbsp;&nbsp;Chief Financial Officer (1995-1998)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Gerald Palmer (54)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1992)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Robert C. Petterson (61)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1991)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Managing Director, Caterpillar Brasil
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;S.A. (1992-1995)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">John E. Pfeffer (57)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Business Unit Manager, York Plant
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1993-1995)
<BR>
&#149;&nbsp;&nbsp;Chairman, Shin Caterpillar Mitsubishi Ltd.
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1995-1999)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Siegfried R. Ramseyer (62)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1992)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Alan J. Rassi (59)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1992)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Gary A. Stroup (50)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1992)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;General Manager, Hauling Units and Motor
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Graders Business Unit (1992-1995)
<BR>
&#149;&nbsp;&nbsp;President, Solar Turbines Incorporated
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1998-present)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Sherril K. West (52)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Marketing Support Services Manager,
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Corporate Services Division (1991-1995)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Donald G. Western (51)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1995)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Managing Director, Caterpillar Belgium
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;S.A. (1990-1995)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Steven H. Wunning (48)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Vice President (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;President, Caterpillar Logistics, Logistics
&amp;
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Product Services Division (1994-1998)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Robert R. Gallagher (59)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Controller (1990)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Kenneth J. Zika (52)</FONT></TD>
<TD WIDTH="28%" ALIGN="LEFT"><FONT
SIZE="2">Treasurer (1998)</FONT></TD>
<TD WIDTH="44%" ALIGN="LEFT"><FONT
SIZE="2">&#149;&nbsp;&nbsp;Business Resource Manager, Track-Type
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Tractors Division, East Peoria Plant
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(1994-1997)
<BR>
&#149;&nbsp;&nbsp;Cost Management &amp; Business Services
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Manager, Corporate Services
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Division (1997-1998)</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD WIDTH="5%"><FONT
SIZE=2>*</FONT></TD>
<TD WIDTH="95%"><FONT
SIZE=2> Officer changes occurring during 1999 not noted above: Donald V.
Fites, Chairman &amp; CEO, retired 2/1999; Roger E. Fischbach, Vice
President, retired 4/1999; and Ronald P. Bonati, Vice President, passed
away 11/1999. Officer changes occurring in 2000 not noted above: James W.
Baldwin, Vice President, will retire 4/2000 and Thomas A. Gales, will
become Vice President, effective 4/2000.</FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 5</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE>
<A NAME="A022"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 2. Properties.</FONT></H2>

<A NAME="A023"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>General Information</U></I></FONT></H2>
<P><FONT
SIZE=2>Caterpillar&#146;s operations are highly integrated. Although the
majority of our plants are involved primarily in the production of either
machines or engines, several plants are involved in the manufacture of
both. In addition, several plants are involved in the manufacture of
components which are used in the assembly of both machines and engines.
Caterpillar&#146;s parts distribution centers are involved in the storage
and distribution of parts for machines and engines. Also, the research
and development activities carried on at the Technical Center involve
both machines and engines. </FONT></P>
<P><FONT
SIZE=2>Properties we own are believed to be generally well maintained and
adequate for present use. Through planned capital expenditures, we expect
these properties to remain adequate for future needs. Properties we lease
are covered by leases expiring over terms of generally 1 to 10 years. We
anticipate no difficulty in retaining occupancy of any leased facilities,
either by renewing leases prior to expiration or by replacing them with
equivalent leased facilities. </FONT></P>

<A NAME="A024a"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Plant Closings</U></I></FONT></H2>
<P><FONT
SIZE=2>Information regarding plant closing costs is incorporated by
reference from Note 19 of the Notes to Consolidated Financial Statements
on page A-16 of the Appendix. </FONT></P>

<A NAME="A024b"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Headquarters</U></I></FONT></H2>
<P><FONT
SIZE=2>Our corporate headquarters are in Peoria, Illinois. Additional
marketing headquarters are located both inside and outside the United
States. The Financial Products Division is headquartered in leased
offices located in Nashville, Tennessee. </FONT></P>

<A NAME="A025"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Distribution</U></I></FONT></H2>
<P><FONT
SIZE=2>Distribution of our products is conducted from parts distribution
centers inside and outside the United States. Caterpillar Logistics
Services, Inc. distributes other companies&#146; products utilizing
certain of our distribution facilities as well as other non-Caterpillar
facilities located both inside and outside the United States. We also own
or lease other storage facilities which support distribution activities.
</FONT></P>

<A NAME="A026"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Changes in Fixed Assets</U></I></FONT></H2>
<P><FONT
SIZE=2>During the five years ended December 31, 1999, changes in our
investment in property, plant and equipment were as follows (stated in
millions of dollars): </FONT></P>

<BR>
</TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="600">
<TR>
<TH COLSPAN="16"> <HR NOSHADE SIZE="1"> </TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN="2"><FONT
SIZE="2"></FONT></TH>
<TH COLSPAN="4"><FONT
SIZE="2">Expenditures</FONT> <HR WIDTH=95% SIZE=1 NOSHADE> </TH>
<TH COLSPAN="4"><FONT
SIZE="2">Acquisitions<SUP>(1)</SUP>
</FONT> <HR WIDTH=95% SIZE=1 NOSHADE> </TH>
<TH COLSPAN="2" ROWSPAN="2"><FONT
SIZE="2">Provisions
<BR>
for
<BR>
Depreciation</FONT></TH>
<TH COLSPAN="2" ROWSPAN="2"><FONT
SIZE="2">Disposals
<BR>
and
<BR>
Other
<BR>
Adjustments</FONT></TH>
<TH COLSPAN="2" ROWSPAN="2"><FONT
SIZE="2">Net Increase
<BR>
(Decrease)
<BR>
During Period</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN="2"><FONT
SIZE="2">Year</FONT></TH>
<TH COLSPAN="2"><FONT
SIZE="2">U.S.</FONT></TH>
<TH COLSPAN="2"><FONT
SIZE="2">Outside
<BR>
U.S.</FONT></TH>
<TH COLSPAN="2"><FONT
SIZE="2">U.S.</FONT></TH>
<TH COLSPAN="2"><FONT
SIZE="2">Outside
<BR>
U.S.</FONT></TH>
</TR>
<TR>
<TD COLSPAN="16"> <HR NOSHADE SIZE="1"> </TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="10%" ALIGN="LEFT"><FONT
SIZE="2">1995</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT
SIZE="2">$506</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT
SIZE="2">$173</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;0</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;0</FONT></TD>
<TD WIDTH="4%" ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT
SIZE="2">$(679</FONT></TD>
<TD WIDTH="5%" ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT
SIZE="2">$(132</FONT></TD>
<TD WIDTH="5%" ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT
SIZE="2">$(132</FONT></TD>
<TD WIDTH="3%" ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
</TR>
<TR>
<TD COLSPAN="16"> <HR NOSHADE SIZE="1"> </TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">1996</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$513</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$258</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;0</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$136</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$(690</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;(94</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;123</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN="16"> <HR NOSHADE SIZE="1"> </TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">1997</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$726</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$380</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;0</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;2</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$(710</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$(107</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;291</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN="16"> <HR NOSHADE SIZE="1"> </TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">1998</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$880</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$389</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;21</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$347</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$(790</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;(39</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;808</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN="16"> <HR NOSHADE SIZE="1"> </TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="LEFT"><FONT
SIZE="2">1999</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$830</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$450</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;&nbsp;3</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$103</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$(857</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$(194</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">)</FONT></TD>
<TD ALIGN="RIGHT"><FONT
SIZE="2">$&nbsp;335</FONT></TD>
<TD ALIGN="LEFT"><FONT
SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN="16"> <HR NOSHADE SIZE="1"> </TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2>Prior to 1996, Acquisition amounts, if any, are included with
Expenditures.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 6</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> <P><FONT
SIZE=2>At December 31, 1999, the net book value of properties located
outside the United States represented 28.5% of the net book value of all
properties reflected in our consolidated financial position. Additional
information about our investment in property, plant and equipment is
incorporated by reference from Note 1E on page A-7 and Note 9 on page
A-12 of the Notes to Consolidated Financial Statements of the Appendix.
</FONT></P>

<A NAME="A027"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Technical Center, Training Centers, Demonstration Areas, and
Proving Grounds</U></I></FONT></H2>
<P><FONT
SIZE=2>We own a Technical Center located in Mossville, Illinois and various
other training centers, demonstration areas, and proving grounds located
both inside and outside the United States. </FONT></P>

<A NAME="A028"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Manufacturing, Remanufacturing, and
Overhaul</U></I></FONT></H2>
<P><FONT
SIZE=2>Manufacturing, remanufacturing, and overhaul of our products are
conducted at the following locations. These facilities are believed to be
suitable for their intended purposes with adequate capacities for current
and projected needs for existing products. </FONT></P>
<HR SIZE=2 NOSHADE> <H1 ALIGN=CENTER>&nbsp;</H1>
<H1 ALIGN=CENTER><FONT
SIZE=3>Manufacturing</FONT></H1>
</TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="600">
<TR VALIGN="TOP">
<TD WIDTH="20%" ALIGN="LEFT"><FONT
SIZE="2"> <B>Inside the U.S.</B></FONT> <HR SIZE=1 NOSHADE WIDTH="80%">
<FONT
SIZE="2"> <B><I>California</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Gardena
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;San Diego
<BR>

<BR>
<B><I>Florida</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Jacksonville
<BR>

<BR>
<B><I>Georgia</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Griffin
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Jefferson
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;LaGrange
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Thomasville
<BR>

<BR>
<B><I>Illinois</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Aurora
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Champaign<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Decatur
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;DeKalb
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Dixon
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;East Peoria
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Joliet
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Mapleton
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Mossville
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Peoria
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Pontiac
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Sterling
<BR>

<BR>
<B><I>Indiana</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Lafayette
<BR>

<BR>
</FONT></TD>
<TD WIDTH="20%" ALIGN="LEFT"><FONT
SIZE="2"> <B><I>Kansas</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Wamego
<BR>

<BR>
<B><I>Kentucky</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Danville
<BR>

<BR>
<B><I>Michigan</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Menominee
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Mt. Clemens
<BR>

<BR>
<B><I>Minnesota</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Minneapolis
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;New Ulm
<BR>

<BR>
<B><I>Mississippi</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Oxford
<BR>

<BR>
<B><I>Missouri</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Boonville
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;West Plains
<BR>

<BR>
<B><I>Nebraska</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Omaha
<BR>

<BR>
<B><I>North Carolina</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Clayton
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Franklin
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Leland
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Morganton
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Sanford
<BR>

<BR>
<B><I>Ohio</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Marion
<BR>

<BR>
</FONT></TD>
<TD WIDTH="20%" ALIGN="LEFT"><FONT
SIZE="2"> <B><I>South Carolina</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Greenville
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Sumter
<BR>

<BR>
<B><I>Tennessee</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Dyersburg
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Rockwood
<BR>

<BR>
<B><I>Texas</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Houston
<BR>

<BR>

<BR>
<B>Outside the U.S.</B></FONT> <HR SIZE=1 NOSHADE WIDTH="80%"> <FONT
SIZE="2"> <B><I>Australia</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Burnie<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Melbourne
<BR>

<BR>
<B><I>Belgium</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Gosselies
<BR>

<BR>
<B><I>Brazil</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Piracicaba
<BR>

<BR>
<B><I>Canada</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Laval
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Montreal
<BR>

<BR>
<B><I>England</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Leicester
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Peterborough
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Peterlee
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Shrewsbury
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Skinningrove
<BR>
</FONT></TD>
<TD WIDTH="20%" ALIGN="LEFT"><FONT
SIZE="2"> &nbsp;&nbsp;&#149;&nbsp;&nbsp;Slough<SUP><SMALL>(2)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Stafford
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Stockton
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Wolverhampton
<BR>

<BR>
<B><I>France</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Arras
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Grenoble
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Rantigny
<BR>

<BR>
<B><I>Germany</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Kiel
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Rostock
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Zweibr&uuml;cken
<BR>

<BR>
<B><I>Hungary</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;G&ouml;d&ouml;ll&ouml;<SUP><SMALL>(2)</SMALL>
</SUP>
<BR>

<BR>
<B><I>India</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Bangalore<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Mumbai<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>

<BR>
<B><I>Indonesia</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Jakarta<SUP><SMALL>(2)</SMALL>
</SUP>
<BR>

<BR>
<B><I>Italy</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Anagni<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Bazzano
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Frosinone<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Jesi
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Milan<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
</FONT></TD>
<TD WIDTH="20%" ALIGN="LEFT"><FONT
SIZE="2"> <B><I>Japan</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Akashi<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Sagamihara<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>

<BR>
<B><I>Mexico</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Monterrey
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Reynosa
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Saltillo<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Tijuana
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Torreon
<BR>

<BR>
<B><I>The Netherlands</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;s&#146;-Hertogenbosch
<BR>

<BR>
<B><I>Northern Ireland</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Larne
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Monkstown
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Springvale
<BR>

<BR>
<B><I>People&#146;s Republic of China</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Erliban<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Shunde<SUP><SMALL>(1)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Tianjin<SUP><SMALL>(2)</SMALL>
</SUP>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Xuzhou<SUP><SMALL>(2)</SMALL>
</SUP>
<BR>

<BR>
<B><I>Poland</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Janow Lubelski<SUP><SMALL>(2)</SMALL>
</SUP>
<BR>

<BR>
<B><I>Russia</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;St. Petersburg
<BR>

<BR>
<B><I>South Africa</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Johannesburg
<BR>

<BR>
<B><I>Sweden</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;S&ouml;derhamn
<BR>
</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2>Facility of affiliated company (50% or less owned)</FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT
SIZE=2>(2) </FONT></TD>
<TD WIDTH=3%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT
SIZE=2>Facility of partially owned subsidiary (more than 50%, less than
100%)</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=2 NOSHADE>
<BR>
<P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 7</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> </TD>
</TR>
</TABLE>
<HR SIZE=2 NOSHADE>
<A NAME="A035"></A>
<H2 ALIGN=left><FONT
SIZE=3>Remanufacturing and Overhaul</FONT></H2>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="600">
<TR VALIGN="TOP">
<TD WIDTH="25%" ALIGN="LEFT"><FONT
SIZE="2"> <B>Inside the U.S.</B></FONT> <HR SIZE=1 NOSHADE WIDTH="80%">
<FONT
SIZE="2"> <B><I>Mississippi</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Corinth
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Prentiss County
<BR>

<BR>
<B><I>Texas</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;De Soto
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Mabank</FONT></TD>
<TD WIDTH="25%" ALIGN="LEFT"><FONT
SIZE="2"> <B>Outside the U.S.</B></FONT> <HR SIZE=1 NOSHADE WIDTH="80%">
<FONT
SIZE="2"> <B><I>Australia</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Melbourne
<BR>

<BR>
<B><I>Belgium</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Gosselies
<BR>

<BR>
<B><I>Canada</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Edmonton</FONT></TD>
<TD WIDTH="25%" ALIGN="LEFT"><FONT
SIZE="2"> <B><I>Indonesia</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Bandung
<BR>

<BR>
<B><I>Ireland</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Dublin
<BR>

<BR>
<B><I>Malaysia</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Kuala Lumpur</FONT></TD>
<TD WIDTH="25%" ALIGN="LEFT"><FONT
SIZE="2"> <B><I>Mexico</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Nuevo Laredo
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Tijuana
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Veracruz
<BR>

<BR>
<B><I>Nigeria</I></B>
<BR>
&nbsp;&nbsp;&#149;&nbsp;&nbsp;Port Harcourt</FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<A NAME="A049"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>PART II</FONT></H2>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 5. Market for Registrant&#146;s Common Equity and Related
Stockholder Matters.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 5 is incorporated by reference from
&#147;Price Ranges&#148; and &#147;Number of Stockholders&#148; on page
A-30 and from &#147;Dividends declared per share of common stock&#148; on
page A-20 of the Appendix. </FONT></P>

<A NAME="A050"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Non-U.S. Employee Stock Purchase Plans</U></I></FONT></H2>
<P><FONT
SIZE=2>We have twenty employee stock purchase plans administered outside
the United States for our foreign employees. As of December 31, 1999,
those plans had approximately 5,279 participants in the aggregate. During
the fourth quarter of 1999, a total of 26,061 shares of Caterpillar
common stock or foreign denominated equivalents were distributed under
the plans. </FONT></P>

<A NAME="A051"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2><I><U>Put Options</U></I></FONT></H2>
<P><FONT
SIZE=2>In conjunction with its stock repurchase program, Caterpillar sells
put options to independent third parties on a private basis. These put
options entitle the holders to sell shares of Caterpillar common stock to
the Company on certain dates at specified prices. On December 31, 1999,
237,500 put options were outstanding with exercise prices ranging from
$42.48 to $52.10 per share. The put options expired between February 4,
2000 and March 10, 2000, and were exercised by the holders on their
expiration dates. During the fourth quarter of 1999, Caterpillar received
$.4 million in proceeds from the sale of put options. </FONT></P>

<A NAME="A052"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 6. Selected Financial Data.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 6 is incorporated by reference from the
&#147;Five-year Financial Summary&#148; on page A-20 of the Appendix.
</FONT></P>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 7. Management&#146;s Discussion and Analysis of Financial
Condition
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
Results of Operations.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 7 is incorporated by reference from
&#147;Management&#146;s Discussion and Analysis&#148; on pages A-21
through A-29 of the Appendix. </FONT></P>
<P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 8</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> <P><FONT
SIZE=2></FONT><B><U><FONT
SIZE="2">SAFE HARBOR STATEMENT UNDER THE SECURITIES LITIGATION</FONT><FONT
FACE="Times New Roman"> </FONT></U></B></P>
<P><B><U><FONT
SIZE="2">REFORM ACT OF 1995</FONT></U></B></P>
<P><FONT
SIZE="2">Certain statements contained in our Management's Discussion and
Analysis are forward looking and involve uncertainties that could
significantly impact expected results. The words &quot;believes,&quot;
&quot;expects,&quot; &quot;estimates,&quot; &quot;anticipates,&quot;
&quot;will be&quot; and similar words or expressions identify
forward-looking statements made on behalf of Caterpillar. Uncertainties
include factors that affect all international businesses, as well as
matters specific to the Company and the markets it serves.</FONT></P>
<P><B><I><U><FONT
SIZE="2">Current Outlook</FONT></U></I></B></P>
<P><FONT
SIZE="2">Our current outlook calls for recovery to continue throughout Asia
and Latin America. Africa and Middle East also should register improved
growth in 2000. If, for any reason, these recoveries falter, sales would
likely be lower than anticipated in the affected region. Renewed currency
speculation, a significant decline in the stock market (in the region or
in the U.S.), political disruption or much higher interest rates (in the
region or in the U.S.) could result in weaker than anticipated economic
growth and sales. Economic recovery could also be delayed or weakened by
growing budget or current account deficits or inappropriate government
policies. </FONT></P>
<P><FONT
SIZE="2">In particular, our outlook assumes that the Japanese government
remains committed to stimulating the economy and that the Brazilian
government follows through with promised reforms. A reversal by either
government could result in renewed recession. Our outlook also assumes
that currency and stock markets remain relatively stable. If currency or
stock markets were to decline significantly, uncertainty would increase
and interest rates could move higher, both of which would probably result
in slower economic growth and lower sales.</FONT></P>
<P><FONT
SIZE="2">The outlook for our sales also depends on commodity prices, most
of which are expected to trend slightly higher through 2000 but remain
considerably below 1999 levels. Oil prices have moved up considerably
since the start of last year and are expected to decline some from recent
highs. Gold prices moved higher last year on announcements of government
plans to refrain from selling gold, and we assume gold prices average
about $300 per ounce in 2000. Agricultural prices are likely to remain
weak while most metals prices should be up slightly. Based on this
forecast of only modest improvement in most commodity prices, equipment
sales into sectors that are sensitive to commodity prices are likely to
remain relatively weak for 2000. </FONT></P>
<P><FONT
SIZE="2">Stronger than anticipated world growth could lead to noticeable
improvement in commodity prices which could result in greater than
expected sales this year. Conversely, weaker than anticipated world
economic growth could lead to a drop in commodity prices and lower than
expected sales. Europe plays a key role in this forecast and our current
outlook is for improvement leading to annual average GDP growth of about
3%. If Europe falters, then commodity prices could be weaker.</FONT></P>
<P><FONT
SIZE="2">Russia remains very weak. Political and economic instability are
very high and a further deterioration could impact worldwide stock or
currency markets, which in turn could weaken Company sales.</FONT></P>
<P><B><I><U><FONT
SIZE="2">Monetary and Fiscal Policies</FONT></U></I></B></P>
<P><FONT
SIZE="2">For most companies operating in a global economy, monetary and
fiscal policies implemented in the U.S. and abroad could have a
significant impact on economic growth, and, accordingly, demand for a
product. For example, if the Federal Reserve raises rates significantly,
the U.S. economy could slow abruptly leading to an unanticipated decline
in sales. The United States, in particular, is vulnerable to higher
interest rates as it enters the tenth year of expansion - which is the
largest in U.S. history. Our outlook assumes the Federal Reserve will
raise interest rates 25 to 50 basis points in the first half of the year
which will contribute to lower industry demand. If the Federal Reserve
raises rates more that 50 basis points then industry demand will likely
be even lower resulting in lower company sales. </FONT></P>
<P><FONT
SIZE="2">In general, high interest rates, reductions in government
spending, higher taxes, significant currency devaluations, and
uncertainty over key policies are some factors likely to lead to slower
economic growth and lower industry demand. The current outlook is for
slightly slower U.S. growth in 2000 and not recession. If, for whatever
reason, the U.S. were to enter a recession then demand for Company
products would fall in the U.S. and Canada and would also be lower
throughout the rest of the world.</FONT></P>
<P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 9</FONT></P>
</TD>
</TR>
</TABLE>
<HR SIZE=5 NOSHADE>
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <H2 ALIGN=LEFT><FONT
SIZE=2></FONT></H2>
<P><B><I><U><FONT
SIZE="2">Political Factors</FONT></U></I></B></P>
<P><FONT
SIZE="2">Political factors in the U.S. and abroad also have a major impact
on global companies. The Company is one of the largest U.S. exporters as
a percentage of sales. International trade and fiscal policies
implemented in the U.S. this year could impact the Company's ability to
expand its business abroad. U.S. foreign relations with certain countries
and any related restrictions imposed could also have a significant impact
on foreign sales. There are also a number of presidential elections
scheduled to take place in 2000 which could affect economic policy,
particularly in Latin America.</FONT></P>
<P><B><I><U><FONT
SIZE="2">Currency Fluctuations</FONT></U></I></B></P>
<P><FONT
SIZE="2">Currency fluctuations are also a significant unknown for global
companies. If the U.S. dollar strengthens against foreign currencies, the
Company's ability to realize price increases on sales could be negatively
impacted. Most of the Company's key competitors have their principal
manufacturing operations based in Japan or European countries. The
majority of our manufacturing assets are in the United States.
Consequently, an overvalued dollar makes our costs relatively higher
compared with these competitors. As a major net exporter from the United
States, an overvalued dollar, over time, could have an unfavorable impact
on our global competitive position.</FONT></P>
<P><B><I><U><FONT
SIZE="2">Dealer Practices</FONT></U></I></B></P>
<P><FONT
SIZE="2">In addition to these factors, there are uncertainties related to
the Company's industry and specific operations. A major factor
contributing to the Company's success is its dealer distribution network.
Dealer practices, such as changes in inventory levels for both new and
rental equipment, are not within the Company's control (primarily because
these practices depend upon the dealer's assessment of anticipated sales
and the appropriate level of inventory) and may have a significant
positive or negative impact on our results. In particular, the outlook
assumes that inventory sales ratios will be somewhat lower at the end of
2000 than at the end of 1999. If dealers reduce inventory levels more
than anticipated, company sales will be adversely impacted.</FONT></P>
<P><B><I><U><FONT
SIZE="2">Other Factors</FONT></U></I></B></P>
<P><FONT
SIZE="2">The rate of infrastructure spending, housing starts, commercial
construction and mining also play a significant role in the Company's
results. Our products are an integral component of these activities and
as these activities increase or decrease in the U.S. or abroad, demand
for our products may be significantly impacted. In 1999, the six-year
Federal highway bill did not boost U.S. sales as much as anticipated due
to delays in getting major capital projects underway. If, unexpectedly,
these delays continued in the Year 2000, sales could be negatively
impacted.</FONT></P>
<P><FONT
SIZE="2">Another factor which can impact company sales and profit is mix.
Our outlook assumes a certain geographic mix of sales (higher priced
areas vs. lower priced areas) as well as a product mix of sales (machines
vs. engines, small vs. large, high margin vs. low margin). Results may be
impacted positively or negatively by changes in the mix. </FONT></P>
<P><FONT
SIZE="2">The Company operates in a highly competitive environment and our
outlook depends on a forecast of the Company's percentage of industry
sales. A reduction in that percentage could result from pricing or
product strategies pursued by competitors, unanticipated product or
manufacturing difficulties, a failure to price the product competitively,
or an unexpected buildup in competitors' new machine or dealer owned
rental fleets. </FONT></P>
<P><FONT
SIZE="2">The outlook also depends on our ability to realize price
increases. The environment remains very competitive and a repeat of the
price discounting that occurred in 1998 and 1999 would result in lower
than anticipated price realization.</FONT></P>
<P><FONT
SIZE="2">This discussion of uncertainties is by no means exhaustive but is
designed to highlight important factors that may impact our outlook.
Obvious factors such as general economic conditions throughout the world
do not warrant further discussion but are noted to further emphasize the
myriad of contingencies that may cause the Company's actual results to
differ from those currently anticipated.</FONT></P>
<P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
</FONT></P>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 7a. Quantitative and Qualitative Disclosures About Market
Risk.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 7a is incorporated by reference from
the following Notes to Consolidated Financial Statements &#151; Notes 1G
and 2 on pages A-8 through A-9 of the Appendix and Notes 16 and 17 on
pages A-15 through A-16 of the Appendix and from &#147;Derivative
Financial Instruments&#148; on pages A-27 through A-28 of the Appendix.
</FONT></P>

<A NAME="A054"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 8. Financial Statements and Supplementary Data.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 8 is incorporated by reference from the
Report of Independent Accountants on page A-3, and the Financial
Statements and Notes to Consolidated Financial Statements on pages A-4
through A-19 of the Appendix. </FONT></P>

<A NAME="A055"></A>
<H2 ALIGN=LEFT>&nbsp;</H2>
<P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 10</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE>
<A NAME="A057"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>PART III</FONT></H2>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 10. Directors and Executive Officers of the
Registrant.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 10 relating to identification of
directors is incorporated by reference from &#147;Directors Up For
Election This Year for Terms Expiring in 2003,&#148; &#147;Directors
Remaining in Office Until 2001,&#148; and &#147;Directors Remaining in
Office Until 2002&#148; on pages 2 through 4 of the Proxy Statement.
Identification of executive officers appears in Item 1a of this Form
10-K. There are no family relationships between the officers and
directors of the Company. All officers serve at the pleasure of the Board
of Directors and are regularly elected at a meeting of the Board of
Directors in April of each year. Information required by Item 10 relating
to compliance with section 16(a) of the Securities Exchange Act is
incorporated by reference from &#147;Section 16(a) Beneficial Ownership
Reporting Compliance&#148; on page 31 of the Proxy Statement. </FONT></P>

<A NAME="A056"></A>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 11. Executive Compensation.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 11 is incorporated by reference from
&#147;Director Compensation&#148; on pages 5 and 6, &#147;Performance
Graph&#148; on page 12, &#147;Compensation Committee Report on Executive
Officer and Chief Executive Officer Compensation&#148; on pages 13
through 18, and &#147;Executive Compensation Tables&#148; on pages 19
through 21 of the Proxy Statement. </FONT></P>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 12. Security Ownership of Certain Beneficial Owners and
Management.</FONT></H2>
<P><FONT
SIZE=2>Information required by Item 12 is incorporated by reference from
&#147;Caterpillar Stock Owned by Officers and Directors (as of December
31, 1999)&#148; on page 11 of the Proxy Statement and from &#147;Persons
Owning More than Five Percent of Caterpillar Stock (as of December 31,
1999)&#148; on page 12 of the Proxy Statement. </FONT></P>
<H2 ALIGN=LEFT><FONT
SIZE=2>PART IV</FONT></H2>
<H2 ALIGN=LEFT><FONT
SIZE=2>Item 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K.</FONT></H2>
</TABLE>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>(a)</FONT></TD>
<TD WIDTH=90%><FONT
SIZE=2>The following documents are filed as part of this
report:</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>1. </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Financial Statements (Incorporated by reference from the
Appendix):</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>&#149;</FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2> Report of Independent Accountants (p. A-3)</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>&#149;</FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2> Statement 1 - Consolidated Results of Operations (p.
A-4)</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>&#149;</FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2> Statement 2 - Changes in Consolidated Stockholders&#146; Equity
(p. A-4)</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>&#149;</FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2> Statement 3 - Financial Position (p. A-5)</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>&#149;</FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2> Statement 4 - Statement of Cash Flow (p. A-6)</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>&#149;</FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2> Notes to Consolidated Financial Statements (pages A-7 through
A-19)</FONT></TD>
</TR>
</TABLE>

<BR>

<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 11</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD HEIGHT="22"> <HR SIZE=5 NOSHADE> </TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>2. </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Financial Statement Schedule:</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>&#149;</FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2> All schedules are omitted because they are not applicable or the
required information is shown in the financial statements or the notes
thereto incorporated by reference.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>(b) </FONT></TD>
<TD WIDTH=90%><FONT
SIZE=2>There were two reports, dated October 15 and November 19, filed on
Form 8-K pursuant to Item 5 during the last quarter of 1999 and
additional reports filed on Form 8-K on January 21 and February 14,
2000. No financial statements were filed as part of those
reports.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>(c) </FONT></TD>
<TD WIDTH=90%><FONT
SIZE=2>Exhibits:</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>3.1 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Restated Certificate of Incorporation (incorporated by reference
from Exhibit 3(i) to the Form 10-Q filed for the first quarter of
1998).</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>3.2 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Certificate of Designation, Preferences and Rights of the Terms of
the Series A Junior Participating Preferred Stock (incorporated by
reference from Exhibit 2 to Form 8-A filed December 11,
1996).</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>3.3 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Bylaws, amended and restated (incorporated by reference from
Exhibit 3.3 to the 1998 Form 10-K).</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>4 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Rights Agreement dated as of December 11, 1996, between Caterpillar
Inc. and First Chicago Trust Company of New York (incorporated by
reference from Exhibit 1 to Form 8-A filed December 11,
1996).</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.1 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Caterpillar Inc. 1996 Stock Option and Long-Term Incentive Plan,
amended and restated as of February 9, 2000.**</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.2 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Caterpillar Inc. 1987 Stock Option Plan, as amended and restated
and Long Term Incentive Supplement (incorporated by reference from
Exhibit 4.2 to Form S-3 (Reg. No. 333-43133) filed December 23,
1997).**</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.3 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Supplemental Pension Benefit Plan, as amended and
restated.**</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.4 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Supplemental Employees&#146; Investment Plan, as amended and
restated.**</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.5 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Caterpillar Inc. Corporate Incentive Compensation Plan Management
and Salaried Employees, as amended and restated through December 31,
1999.**</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.6 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Directors&#146; Deferred Compensation Plan, as amended and restated
through April 12, 1999.**</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.7 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Directors&#146; Charitable Award Program (incorporated by reference
from Exhibit 10(h) to the 1993 Form 10-K).**</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>10.8 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Deferred Employees&#146; Investment Plan, as amended and restated
(incorporated by reference from Exhibit 10.6 to the 1998 Form
10-K).**</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>11 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Statement re: Computation of per Share Earnings (incorporated by
reference from Note 15 of the Notes to Consolidated Financial Statements
appearing on page A-15 of the Appendix).</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>12 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Statement Setting Forth Computation of Ratios of Profit to Fixed
Charges.</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>13 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Annual Report to Security Holders attached as an Appendix to the
Company&#146;s 2000 Annual Meeting Proxy Statement.</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>21 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Subsidiaries and Affiliates of the Registrant.</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>23 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Consent of Independent Accountants.</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>27 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Financial Data Schedule.</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>99.1 </FONT></TD>
<TD WIDTH=85%><FONT
SIZE=2>Form 11-K for Caterpillar Foreign Service Employees&#146; Stock
Purchase Plan.</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT
SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT
SIZE=2>** </FONT></TD>
<TD WIDTH=90%><FONT
SIZE=2>Compensatory plan or arrangement required to be filed as an exhibit
pursuant to Item 14(c) of this Form 10-K.</FONT></TD>
</TR>
</TABLE>

<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 12</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE>
<A NAME="A058"></A>
<H1 ALIGN=CENTER><FONT
SIZE=2>SIGNATURES</FONT></H1>
<P><FONT
SIZE=2><B>Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Company has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly
authorized. </B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<BR>

<TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0">
<TR VALIGN=TOP>
<TD WIDTH="45%" ALIGN="LEFT"><FONT
SIZE=2>
<BR>
Date: March 30, 2000</FONT></TD>
<TD WIDTH="10%" ALIGN="LEFT"><FONT
SIZE=2></FONT></TD>
<TD WIDTH="45%" ALIGN="LEFT"><FONT
SIZE=2>CATERPILLAR INC.
<BR>
&nbsp;&nbsp;&nbsp;(Registrant)
<BR>
By:&nbsp;/s/ R. R. Atterbury</FONT> <HR NOSHADE WIDTH="50%" SIZE="1"
ALIGN="left"> <FONT
SIZE=2> R. R. Atterbury III, Secretary</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P><FONT
SIZE=2><B>Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the Company and in the capacities and on the dates indicated.
</B></FONT></P>

<BR>

<BR>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Glen A. Barton
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Glen A. Barton)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Chairman of the Board, Director and Chief Executive
Officer</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Gerald S. Flaherty
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Gerald S. Flaherty)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>
<BR>
Group President</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ James W. Owens
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(James W. Owens)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Group President</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Gerald L. Shaheen
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Gerald L. Shaheen)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Group President</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Richard L. Thompson
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Richard L. Thompson)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Group President</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ F. Lynn McPheeters
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(F. Lynn McPheeters)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Vice President and Chief Financial Officer</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Robert R. Gallagher
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Robert R. Gallagher)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Controller and Chief Accounting Officer</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 13</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> </TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Lilyan H. Affinito
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Lilyan H. Affinito)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ W. Frank Blount
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(W. Frank Blount)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ John R. Brazil
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(John R. Brazil)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ John T. Dillon
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(John T. Dillon)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Donald V. Fites
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Donald V. Fites)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Juan Gallardo
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Juan Gallardo)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ David R. Goode
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(David R. Goode)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ James P. Gorter
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(James P. Gorter)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Peter A. Magowan
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Peter A. Magowan)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Gordon R. Parker
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Gordon R. Parker)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ George A. Schaefer
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(George A. Schaefer)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Joshua I. Smith
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Joshua I. Smith)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=33% ALIGN=LEFT><FONT
SIZE=2>
<BR>
March 30, 2000</FONT></TD>
<TD WIDTH=33% ALIGN=CENTER><FONT
SIZE=2>/s/ Clayton K. Yuetter
<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>
(Clayton K. Yeutter)</FONT></TD>
<TD WIDTH=34% ALIGN=CENTER><FONT
SIZE=2>Director</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <P ALIGN=RIGHT><FONT
SIZE=2>
<BR>
Page 14</FONT></P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD> <HR SIZE=5 NOSHADE> <H1 ALIGN=CENTER><FONT
SIZE=3>[CATERPILLAR LOGO]</FONT></H1>
</TD>
</TR>
</TABLE>
</BODY>
</HTML>