Caterpillar ranked No. 19 on Fortune’s World’s Most Admired Companies list this year. John Deere garnered the No. 38 spot.
Fortune also ranked Caterpillar as the No. 1 most admired company in the Industrial and Farm equipment category, with Deere No. 2. Others among the Top 10 include Cummins and Komatsu.
Last year was a record year in many areas for Caterpillar—sales, profit, and employment. The company is also setting an upward trend as a most admired company. In the last two years, Caterpillar jumped from number 35 to 27 to 19 this year on Fortune’s list.
Fortune attributes the company’s success to a number of areas, but commented on the company’s positive impact to the economy, job growth, and the largest year-over-year percentage increase in sales since 1947.
“I could not be more proud of the Caterpillar team,” said chairman and CEO Doug Oberhelman. “We are focusing on customers like never before, and that is truly reflected in our results. This recognition shows that the work you do everyday and the changes you are making to be more customer focused are truly adding value to our customers, our stakeholders and our people.”
Fortune administers an annual study to measure nine key attributes of companies (listed below), and ranks the top 50 organizations according to the results. The most admired companies are the organizations that receive the highest scores. Apple has held the number one ranking since 2008.
Top executives from eligible companies and financial analysts provide feedback to determine which companies have the strongest reputations within and across industries. The study is designed to provide insight into the essence of business success and identify the business practices that differentiate the World’s Most Admired Companies.
Results for 2012 show that the World’s Most Admired Companies have succeeded in aligning various business units/subsidiaries around a common strategic vision, leaders understanding their role in implementing strategy and employees are encouraged to take reasonable risks to improve business results.
Reputation based on nine key attributes:
- People management
- Use of corporate assets
- Quality of management
- Financial soundness
- Long-term investment
- Quality of products/services
- Global competitiveness