Caterpillar Global Pipeline will work with a newly formed Caterpillar dealership, PipeLine Machinery International, also based in Houston, to increase business in the global pipeline construction industry. Both the pipeline division and the dealership would also have presences in strategic locations around the world to support pipeline industry customers, Caterpillar Group president Gerry Shaheen said.

“Global energy demand is driving an increase in worldwide pipeline construction activities,” Shaheen said.

“As customer needs in this industry have changed, Caterpillar is using a more focused approach to provide solutions tailored to the unique product and service needs of this global customer group.”

The focus will be on mainline, large-diameter interstate and cross-country, limited-durability pipeline construction projects, according to Caterpillar.

Caterpillar certainly has the cash to back its new pipeline division. The corporation recently reported higher quarterly earnings as the US economic recovery boosted sales of its heavy construction machinery and diesel engines.

Profit for the fourth quarter of 2004was $551 million, up 58% from the fourth quarter of 2003. Total profit for 2004 was $2.03 billion.

Sales and revenues for the December quarter of 2004 increased to $8.57 billion from $6.46 billion. The total for the year was $30 billion, up $7.49 billion or 33% on the 2003 total of $22.76 billion.