Caterpillar CEO To Retire in March -- 2nd Update
October 17 2016 - 9:51AM
Dow Jones News
By Joshua Jamerson
Caterpillar Inc. said Chairman and Chief Executive Doug
Oberhelman is slated to retire next year after leading the
equipment maker to its highest annual sales ever before overseeing
the longest sales decline in the company's history.
The board selected Caterpillar executive Jim Umpleby, a company
veteran and current head of the company's energy and transportation
business, to succeed Mr. Oberhelman in the CEO role, effective Jan.
1.
Mr. Oberhelman will remain as executive chairman of Caterpillar
until March 31, when he will retire. After that, board member Dave
Calhoun will assume the role of nonexecutive chairman. Mr. Calhoun
is senior managing director and head of private equity portfolio
operations of Blackstone Group L.P.
Mr. Oberhelman has led Caterpillar since 2010. He spent his
first years as CEO putting billions of dollars into factories to
build more of its familiar yellow machines and move the company
deeper into mining equipment, which would prove to be a risky bet,
The Wall Street Journal reported Sunday.
The year 2012 turned out to be a peak for Caterpillar, but soon
after, miners began shelving equipment-buying plans as commodity
prices fell, China's growth slowed and then oil prices fell, along
with demand for related equipment. Caterpillar now faces its fourth
straight year of falling sales, the longest decline in its
history.
Shares slipped 0.6% to $87.12 in premarket trading. Its stock is
up 29% this year-the best-performing in the Dow Jones Industrial
Average-but trades 25% below its 2012 peak.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 17, 2016 09:36 ET (13:36 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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