Page
1
of
4
April
7,
2004
MEMORANDUM
TO:
EPA
Air
Docket
OAR­
2003­
0012
FROM:
William
Charmley
Engineer
Office
of
Transportation
and
Air
Quality
U.
S.
EPA
SUBJECT:
Financial
Data
regarding
Geographic
Allocation
of
Nonroad
Diesel
Equipment
and
Engine
Company
Revenue
and
Sales
During
the
development
of
the
nonroad
Tier
4
proposal,
EPA
attempted
to
find
publically
available
information
regarding
the
world­
wide
revenue
distribution
of
nonroad
equipment
and
engine
companies,
specifically,
for
companies
known
to
sell
nonroad
equipment
or
engines
in
the
U.
S.
market.

In
both
the
draft
Regulatory
Impact
Analysis
(
RIA)
for
the
proposal
and
in
the
final
RIA,
EPA
estimated
that
certain
research
and
development
costs
for
nonroad
engine
and
equipment
companies
would
be
spread
over
a
larger
volume
of
products
than
just
their
U.
S.
production.
This
analysis
is
documented
in
Chapter
6
of
the
proposal
and
the
final
rule
RIA.
We
were
able
to
collect
information
from
a
number
of
companies'
annual
reports
or
in
most
cases
in
their
required
filings
with
the
Security
and
Exchange
Commission,
through
the
SEC's
Electronic
Data
Gathering,
Analysis
and
Retrieval
(
EDGAR)
system.
This
data
is
available
at
www.
sec.
gov/
edgarhp.
htm.

However,
we
were
not
able
to
find
information
on
all
of
the
more
than
50
nonroad
diesel
engine
companies
and
the
more
than
600
nonroad
diesel
equipment
companies.
In
fact,
we
were
able
to
locate
information
on
only
a
total
of
10
companies
because
many
engine
and
equipment
companies
are
not
publically
traded
in
the
U.
S.,
and
many
of
the
larger
companies
do
not
provide
information
regarding
sales
or
revenue
on
a
geographic
basis.
For
this
reason,
as
described
in
the
draft
and
final
RIA
for
the
nonroad
Tier
4
rule,
we
allocated
R&
D
based
on
the
gross
domestic
product
of
the
U.
S.
relative
to
other
countries
expected
to
implement
emission
standards
similar
to
our
new
Tier
4
standards.

Nevertheless,
we
present
in
the
attached
two
pages
information
on
the
companies
we
were
able
to
collect
information
on.
These
companies
are:


Komatsu
Ltd.


Terex

John
Deere

CNH

Caterpillar

AGCO
Corporation

Gehl

Kubota

JLG
Industries
Inc.
Page
2
of
4

Cummins
Inc.

Although
the
information
documented
here
is
not
extensive
enough
for
us
to
consider
using
it
as
an
alternative
means
to
estimate
fixed
costs
distribution,
we
do
believe
it
supports
our
estimates
that
in
general
the
nonroad
engine
and
equipment
manufacturers
service
global
markets.
Page
3
of
4
Komatsu
Ltd.

Net
Sales,
Fiscal
Year
ending
March
31
(
in
Millions
of
Yen)
Komatsu
Ltd.

Year
2001
2002
2003
Net
Sales,
Fiscal
Year
ending
March
31
Japan
586,865
478,187
458,000
Year
2001
2002
2003
Americas
241,091
262,341
251,371
Japan
54%
46%
42%

Europe
126,479
128,029
145,455
Americas
22%
25%
23%

Asia
(
excluding
Japan),
&
Oceania
117,136
126,363
176,177
Europe
12%
12%
13%

Middle
East
&
Africa
24,798
40,971
58,801
Asia
(
excluding
Japan),
&
Oceania
11%
12%
16%

Totals
1,096,369
1,035,891
1,089,804
Middle
East
&
Africa
2%
4%
5%

source:
SEC
filing,
Form
20­
F,
fiscal
year
2003,
available
at
EDGAR
Terex
Sales
Revenue
(
x10^
6),
fiscal
year
ending
Dec.
31
Terex
Year
2001
2002
2003
Revenue
United
States
$
874
1146.5
1519.8
Year
2001
2002
2003
United
Kingdom
$
217
323.5
433.6
United
States
48%
41%
39%

Germany
$
51
284.2
343.5
United
Kingdom
12%
12%
11%

Other
European
$
332
541.1
965.8
Germany
3%
10%
9%

All
Others
$
340
502.1
634.4
Other
European
18%
19%
25%

Totals
$
1,813
$
2,797
$
3,897
All
Others
19%
18%
16%

source:
SEC
filing,
Form
10­
K,
fiscal
year
2003,
available
at
EDGAR
John
Deere
Equipment
Operations
&
Net
Sales
(
x10^
6)
John
Deere
Year
2001
2002
2003
Equipment
Operations
&
Net
Sales
U.
S.
&
Canada
$
8,124
$
8,199
$
9,249
Year
2001
2002
2003
Overseas
$
2,954
$
3,504
$
4,100
U.
S.
&
Canada
73%
70%
69%

Total
$
11,078
$
11,703
$
13,349
Overseas
27%
30%
31%

source:
2003
John
Deere
Annual
Report,
page
40
Case
New
Holland
(
CNH
Gloval
NV)

Net
Sales
(
x
10^
6)
Case
New
Holland
Year
2000
2001
2002
Net
Sales
Western
Europe
$
3,613
$
3,168
$
3,317
Year
2000
2001
2002
N.
America
$
4,072
$
4,197
$
4,140
Western
Europe
39%
35%
36%

Latin
America
$
633
$
587
$
638
N.
America
44%
46%
44%

Rest
of
World
$
1,019
$
1,078
$
1,236
Latin
America
7%
7%
7%

Totals
$
9,337
$
9,030
$
9,331
Rest
of
World
11%
12%
13%

source:
SEC
filing,
Form
20­
F,
fiscal
year
2003,
available
at
EDGAR
Caterpillar
Caterpillar
Machine
Sales
and
Revenues
(
x
10^
6)
Machine
Sales
and
Revenues
Year
2002
2003
Year
2002
2003
N.
America
$
6,517
$
7,310
N.
America
54%
53%
Europe,
Africa,
Middle
East
$
3,156
$
3,596
Europe,
Africa,
Middle
East,
26%
26%

Latin
America
$
818
$
928
Latin
America
7%
7%

Asia/
Pacific
$
1,484
$
1,844
Asia/
Pacific
12%
13%

Totals
$
11,975
$
13,678
Engine
Sales
and
Revenues
(
x
10^
6)
Engine
Sales
and
Revenues
Year
2002
2003
Year
2002
2003
N.
America
$
2,963
$
3,222
N.
America
25%
24%
Europe,
Africa,
Middle
East
$
2,022
$
2,356
Europe,
Africa,
Middle
East,
17%
17%

Latin
America
$
780
$
793
Latin
America
7%
6%

Asia/
Pacific
$
908
$
999
Asia/
Pacific
8%
7%

Totals
$
6,673
$
7,370
Note:
Caterpillar
engine
sales
include
both
highway,
nonroad
and
stationary
engines
source:
SEC
filing,
Form
10­
K,
fiscal
year
2003,
available
at
EDGAR
Page
4
of
4
AGCO
Corporation
Net
Sales
(
x
10^
6)
AGCO
Corporation
Year
2000
2001
2002
Net
Sales
United
States
$
540
$
755
$
881
Year
2000
2001
2002
Canada
$
115
$
115
$
130
United
States
23%
30%
30%

Germany,
France,
UK,
Ireland
$
747
$
741
$
856
Canada
5%
5%
4%

Other
Europe
$
418
$
422
$
489
Germany,
France,
UK,
Ireland
32%
29%
29%

S.
America,
Middle
East
$
350
$
349
$
388
Other
Europe
18%
17%
17%

Asia
$
58
$
50
$
47
S.
America,
Middle
East
15%
14%
13%

Australia
$
41
$
48
$
60
Asia
2%
2%
2%

Africa,
Mexico,
Central
America,
Carribean
$
67
$
61
$
73
Australia
2%
2%
2%

Totals
$
2,336
$
2,542
$
2,923
Africa,
Mexico,
Central
America,
Carribean
3%
2%
3%

source:
SEC
filing,
Form
10­
K,
available
at
EDGAR
Gehl
Net
Sales
(
x10^
6)
Gehl
Year
2000
2001
2002
Net
Sales
U.
S.
$
216
$
207
$
189
Year
2000
2001
2002
Other
$
34
$
34
$
44
U.
S.
86%
86%
81%

Total
$
250
$
240
$
233
Other
14%
14%
19%

source:
SEC
filing,
Form
10­
K,
available
at
EDGAR
Kubota
Net
Sales
of
Internal
Combustion
Engines
and
Machinery
(
x10^
6)
Kubota
Year
2000
2001
2002
Net
Sales
of
Internal
Combustion
Engines
and
Machinery
Japan
$
1,608
$
1,823
$
1,672
Year
2000
2001
2002
Overseas
$
1,293
$
1,362
$
1,510
Japan
55%
57%
53%

Total
$
2,901
$
3,186
$
3,182
Overseas
45%
43%
47%

source:
Kubota
2002
Annul
Report,
page
9,
using
1
Yen
=
$
7.519,
the
exchange
rate
used
elsewhere
in
the
same
report
JLG
Industries
Inc.
JLG
Industries
Inc.

Revenue
fiscal
year
ending
July
31
Revenue
(
x10^
6)

Year
2001
2002
2003
Year
2001
2002
2003
United
States
$
709
$
556
$
555
United
States
74%
72%
73%

Europe
$
188
$
168
$
145
Europe
19%
22%
19%

Other
$
67
$
46
$
60
Other
7%
6%
8%

Total
$
964
$
770
$
760
source:
SEC
filing,
Form
10­
K,
fiscal
year
2003,
available
at
EDGAR
Cummins
Inc.
Cummins
Inc.

fiscal
year
ending
Dec.
31
Net
Sales
Net
Sales
(
x10^
6)

Year
2001
2002
2003
Year
2001
2002
2003
United
States
$
3,045
$
3,202
$
3,356
United
States
54%
55%
53%

Asia/
Australia
$
901
$
1,023
$
1,112
Asia/
Australia
16%
17%
18%

Europe/
CIS
$
832
$
763
$
827
Europe/
CIS
15%
13%
13%

Mexico/
Latin
America
$
471
$
423
$
475
Mexico/
Latin
America
8%
7%
8%

Canada
$
303
$
283
$
292
Canada
5%
5%
5%

Africa/
Middle
East
$
129
$
159
$
234
Africa/
Middle
East
2%
3%
4%

Total
$
5,681
$
5,853
$
6,296
Note:
Cummins
engine
sales
include
both
highway,
nonroad
and
stationary
engines
source:
SEC
filing,
Form
10­
K,
fiscal
year
2003,
available
at
EDGAR
