PEORIA, Ill., Oct. 17, 2016 /PRNewswire/ -- After more than 41
years with Caterpillar Inc. (NYSE: CAT), Chairman and CEO
Doug Oberhelman has elected to
retire, effective March 31, 2017.
During his time as Chairman and CEO, Oberhelman has reinvigorated
the company's focus on serving customers while also driving a
culture of quality and safety. Oberhelman led the company to its
highest sales and revenues peak in its 91-year history in 2012,
and, since that time, has successfully led the company through the
unprecedented downturn affecting our key industries.
During Oberhelman's tenure:
- Product quality levels have reached historically high
levels.
- Market position for machines has significantly
increased.
- New Lean Management processes have simplified and sped
production capabilities, improving product availability for dealers
and customers.
- The company has increased its quarterly dividend by 83 percent
since 2010.
- The balance sheet is strong, and at the end of the second
quarter of 2016, Caterpillar's Machinery Energy &
Transportation debt-to-capital ratio was 39.0 percent,
with $6.764 billion in cash as of
June 30, 2016.
- Global safety metrics for employees have dramatically improved,
with the Recordable Injury Frequency improving each year.
- Caterpillar has been granted nearly 7,300 patents
worldwide.
- The company dramatically expanded its commitment to lower
owning and operating costs for customers by connecting new and
existing equipment through digital technology and data
analytics.
"Our people have heard me say many times that my greatest
responsibility as Chairman and CEO is to manage Caterpillar for
today and position the company and its future leaders for long-term
success," Oberhelman said. "It has been an honor and a privilege to
lead this company, and I am confident in the choice of my
successor, Jim Umpleby."
"During the last four years, Caterpillar has faced unprecedented
global economic conditions that have significantly impacted the
industries served by our customers, as those industries and
economic growth in many regions around the world have slowed or
severely contracted. Faced with these challenges, our employees
have responded like champions. We have improved our market position
and grown our field population. Our product quality is at
historically high levels, and I believe we are leading the industry
in digital capabilities. I am confident that Caterpillar is
stronger than ever, with product quality, power, technology and
innovation that is the envy of our competitors. Add to that lean
and agile manufacturing capabilities and an unrivaled global
distribution channel. The future is bright," Oberhelman added.
The company's Board of Directors has elected Jim Umpleby, currently a Caterpillar Group
President with responsibility for Energy & Transportation, to
succeed Oberhelman as CEO. Umpleby, a 35-year veteran of the
company, will join the Caterpillar Board of Directors and become
CEO effective January 1, 2017. He
joined Solar Turbines Incorporated in San
Diego, California, in 1980. Solar, a wholly owned subsidiary
of Caterpillar Inc., is one of the world's leading manufacturers of
industrial gas turbine systems. Early in his career, he held
numerous positions of increasing responsibility in engineering,
manufacturing, sales, marketing and customer services. Umpleby
lived in Asia from 1984 to 1990,
with assignments in Singapore and
Kuala Lumpur, Malaysia. The
Caterpillar Board of Directors elected Umpleby a Caterpillar Vice
President and President of Solar Turbines in 2010. He was named
Group President and a member of Caterpillar's Executive Office,
effective January 2013.
"For more than 91 years, Caterpillar equipment has been renowned
for its quality, durability, innovation and
value," Umpleby said. "I have been privileged to work
with Caterpillar employees and dealers in supporting our customers
as they develop the world's infrastructure and improve standards of
living and quality of life. I look forward to leading our dedicated
team as we build upon the accomplishments of those that have come
before us."
Oberhelman will remain as Executive Chairman of Caterpillar
until March 31, 2017, when he will
retire. Upon Oberhelman's retirement, Dave
Calhoun, a current member of the Caterpillar Board, will
assume the role of Non-Executive Chairman of the
Board. Calhoun is Senior Managing Director and Head of Private
Equity Portfolio Operations of The Blackstone Group L.P.
Ed Rust, former Chairman and
Chief Executive Officer of State Farm Mutual Automobile Insurance
Company, and currently Presiding Director of the Caterpillar Board,
will remain on the Board, but will no longer hold the title of
Presiding Director once Calhoun assumes the role of Non-Executive
Chairman.
"The Board has a robust, best-in-class succession planning
process for the critical roles of Chairman of the Board and Chief
Executive Officer as well as other top executive positions. One of
our top priorities as a Board is developing a strong pipeline of
senior leaders. Discussions are held throughout each year, and
today's announcement is the result of these ongoing and deliberate
Board discussions," Rust said. "I am certain Jim will continue the
superb leadership, which is the hallmark of Caterpillar, in the
years to come. I especially want to thank Doug for his strong and
outstanding leadership of the company throughout his tenure,
particularly in the last four years, when the global economic
environment has created unprecedented challenges for Caterpillar.
We wish Doug all of the best for a successful retirement following
a distinguished and successful 41-year career."
Calhoun has been a member of the Caterpillar Board of Directors
since 2011. In addition to his role with the Blackstone Group, he
was previously Executive Chair of Nielsen Holdings N.V.
(2014-2015), served as Chairman of the Executive Board and Chief
Executive Officer of The Nielsen Company B.V. (2006-2013), Vice
Chairman of General Electric Company and President and Chief
Executive Officer of GE Infrastructure (2005-2006).
"I am honored to take on these new responsibilities with
Caterpillar, an iconic and global leader," Calhoun said. "Following
a deliberate succession process, the Board confidently elected Jim
as Caterpillar's next CEO. He reflects the best attributes of
Caterpillar's culture and leadership. I also want to compliment
Doug for his outstanding leadership as Chairman and CEO, as the
capstone to more than four decades of service. His leadership in
the last four years has been remarkable as the company has
successfully navigated an incredibly difficult cycle while
positioning Caterpillar to take full advantage of the next
upturn."
A replacement for Umpleby will be announced at a later date.
About Caterpillar
For 91 years, Caterpillar Inc. has
been making sustainable progress possible and driving positive
change on every continent. Customers turn to Caterpillar to
help them develop infrastructure, energy and natural resource
assets. With 2015 sales and revenues of $47.011 billion, Caterpillar is the world's
leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines and
diesel-electric locomotives. The company principally operates
through its three product segments - Construction Industries,
Resource Industries and Energy & Transportation - and also
provides financing and related services through its Financial
Products segment. For more information,
visit caterpillar.com. To connect with us on social
media, visit caterpillar.com/social-media.
Forward-looking Statements
Certain statements in this
press release relate to future events and expectations and are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as "believe,"
"estimate," "will be," "will," "would," "expect," "anticipate,"
"plan," "project," "intend," "could," "should" or other similar
words or expressions often identify forward-looking statements. All
statements other than statements of historical fact are
forward-looking statements, including, without limitation,
statements regarding our outlook, projections, forecasts or trend
descriptions. These statements do not guarantee future performance,
and we do not undertake to update our forward-looking
statements.
Caterpillar's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) global and
regional economic conditions and economic conditions in the
industries we serve; (ii) government monetary or fiscal policies
and infrastructure spending; (iii) commodity price changes,
component price increases, fluctuations in demand for our products
or significant shortages of component products; (iv) disruptions or
volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers;
(v) political and economic risks, commercial instability and events
beyond our control in the countries in which we operate; (vi)
failure to maintain our credit ratings and potential resulting
increases to our cost of borrowing and adverse effects on our cost
of funds, liquidity, competitive position and access to capital
markets; (vii) our Financial Products segment's risks associated
with the financial services industry; (viii) changes in interest
rates or market liquidity conditions; (ix) an increase in
delinquencies, repossessions or net losses of Cat Financial's
customers; (x) new regulations or changes in financial services
regulations; (xi) a failure to realize, or a delay in realizing,
all of the anticipated benefits of our acquisitions, joint ventures
or divestitures; (xii) international trade policies and their
impact on demand for our products and our competitive position;
(xiii) our ability to develop, produce and market quality products
that meet our customers' needs; (xiv) the impact of the highly
competitive environment in which we operate on our sales and
pricing; (xv) failure to realize all of the anticipated benefits
from initiatives to increase our productivity, efficiency and cash
flow and to reduce costs; (xvi) additional restructuring costs or a
failure to realize anticipated savings or benefits from past or
future cost reduction actions; (xvii) inventory management
decisions and sourcing practices of our dealers and our OEM
customers; (xviii) compliance with environmental laws and
regulations; (xix) alleged or actual violations of trade or
anti-corruption laws and regulations; (xx) additional tax expense
or exposure; (xxi) currency fluctuations; (xxii) our or Cat
Financial's compliance with financial covenants; (xxiii) increased
pension plan funding obligations; (xxiv) union disputes or other
employee relations issues; (xxv) significant legal proceedings,
claims, lawsuits or government investigations; (xxvi) changes in
accounting standards; (xxvii) failure or breach of IT security;
(xxviii) adverse effects of unexpected events including natural
disasters; and (xxix) other factors described in more detail under
"Item 1A. Risk Factors" in our Form 10-K filed with the SEC on
February 16, 2016, for the year ended
December 31, 2015.
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