{"id":7724,"date":"2016-10-18T18:44:06","date_gmt":"2016-10-18T18:44:06","guid":{"rendered":"http:\/\/minutes.machine.market\/?p=7724"},"modified":"2016-10-18T18:44:06","modified_gmt":"2016-10-18T18:44:06","slug":"caterpillar-ceo-to-retire-next-year-after-41-years-with-company","status":"publish","type":"post","link":"https:\/\/machine.market\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/","title":{"rendered":"Caterpillar CEO to retire next year after 41 years with company"},"content":{"rendered":"<p>Caterpillar&#8217;s Doug Oberhelman will retire after a 41-year career with the largest maker of construction and mining equipment, leaving his replacement to finish the job of navigating a commodities slump.<\/p>\n<p>The 63-year-old will be replaced as chief executive officer on Jan. 1 by company veteran Jim Umpleby, now a group president for energy and transportation, the Peoria, Illinois-based company said in a statement Monday.<\/p>\n<div id=\"attachment_7725\" style=\"width: 310px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-7725\" loading=\"lazy\" class=\"wp-image-7725 size-full\" src=\"https:\/\/cranemarket.com\/blog\/wp-content\/uploads\/2016\/10\/Jim-Umpleby-Caterpillar-CEO-machine.market.jpg\" alt=\"Jim Umpleby-Caterpillar-CEO-machine.market\" width=\"300\" height=\"263\" \/><p id=\"caption-attachment-7725\" class=\"wp-caption-text\">Jim Umpleby, new CEO for Caterpillar starting in 2017<\/p><\/div>\n<p>Since leading Caterpillar to record sales in 2012, Oberhelman has been steering through a slowdown in demand for engines, giant trucks and shovels. He reorganized mining and energy segments, shutting down dozens of factories and eliminating thousands of jobs. A years-long initiative to streamline the company&#8217;s supply and distribution network has yielded results as its gross margin has climbed annually since 2013, even as revenue slumped.<\/p>\n<p>The new CEO will face a more formidable global competitor after Komatsu Ltd., the second-biggest mining and construction equipment maker, agreed to buy Joy Global Inc. for $2.89 billion in July. That deal gives the Tokyo-based manufacturer the largest independent maker of underground-mining equipment and the heft to better compete with Caterpillar beyond Komatsu&#8217;s dump-truck and excavator businesses.<\/p>\n<p>Cat has been hurt by the decline in commodity prices as well as bets Oberhelman made on the mining sector when he paid $8.6 billion for South Milwaukee, Wis.-based\u00a0<strong>Bucyrus International<\/strong>, Cat&#8217;s largest acquisition ever, and $700 million for Hong Kong-based ERA Mining Machinery and its unit known as Siwei in 2012. Cat had to take a $580 million write-down when a significant portion of the unit&#8217;s profit, revenue and inventory proved illusory.<\/p>\n<aside class=\"trb_ar_sponsoredmod trb_barker_mediaconductor\" data-adloader-networktype=\"mediaconductor\" data-role=\"delayload_item\" data-screen-size=\"desktop\" data-withinviewport-options=\"bottomOffset=100\" data-load-method=\"trb.vendor.mediaconductor.init\" data-load-type=\"method\" data-vendor-mc=\"\" data-mediaconductor-processed=\"true\"><\/aside>\n<p>The announcement comes a week before Caterpillar reports third-quarter earnings, when it often provides initial guidance for revenue growth for the upcoming year.<\/p>\n<p>\u201cIf the only way to go is up, why wouldn&#8217;t Oberhelman stick around for a couple years more?\u201d asked analyst Mig Dobre of Robert W. Baird. \u201cI&#8217;m sure there&#8217;s a story behind the story here as to why Doug retired now as opposed to two years from now, when he turns 65.\u201d<\/p>\n<p>&#8220;The timing of the change in leadership suggests confirmation that the outlook for 2017 may be for a fifth consecutive year of revenue decline,&#8221; Duignan and Simonitsch wrote.<\/p>\n<p>Stanley Elliott, an analyst at Stifel Nicolaus &amp; Co., said the timing wasn&#8217;t very surprising and may be more about having the new CEO in place before an important trade show in Las Vegas in March, he said by telephone from Richmond, Virginia.<\/p>\n<p>It will be interesting to see Umpleby&#8217;s vision develop, as his technical background makes him likely to \u201cdouble- and triple-down\u201d on the concept of <strong>tech-enabled machinery.\u00a0<\/strong>Cat has invested in Chicago data analytics firm Uptake and launched an in-house analytics and innovation division. The company received nearly 7,300 patents worldwide while Oberhelman was in charge.<\/p>\n<p>Oberhelman, whose 2015 reported pay was $17.9 million, will remain as chairman until March 31 when Dave Calhoun will assume the role, in a non-executive capacity. Calhoun is senior managing director and head of private equity portfolio operations of The Blackstone Group LP. Umpleby will also join the board.<\/p>\n<p>The stock has rallied 29 percent this year along with a recovery in commodity-producer shares. The company is scheduled to report third-quarter earnings on Oct. 25.<\/p>\n<p><strong><span class=\"trb_ar_by_nm_au\" data-byline-withoutby=\"\">by Danielle Bochove\u00a0<\/span><span class=\"trb_ar_by_nm_pb\">Bloomberg<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Caterpillar&#8217;s Doug Oberhelman will retire after a 41-year career with the largest maker of construction and mining equipment, leaving his replacement to finish the job of navigating a commodities slump. The 63-year-old will be replaced as chief executive officer on Jan. 1 by company veteran Jim Umpleby, now a group president for energy and transportation, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7726,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":""},"categories":[2,8],"tags":[266],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Caterpillar CEO to retire next year after 41 years with company - MachineMarket Blog<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caterpillar CEO to retire next year after 41 years with company - MachineMarket Blog\" \/>\n<meta property=\"og:description\" content=\"Caterpillar&#8217;s Doug Oberhelman will retire after a 41-year career with the largest maker of construction and mining equipment, leaving his replacement to finish the job of navigating a commodities slump. The 63-year-old will be replaced as chief executive officer on Jan. 1 by company veteran Jim Umpleby, now a group president for energy and transportation, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/\" \/>\n<meta property=\"og:site_name\" content=\"MachineMarket Blog\" \/>\n<meta property=\"article:published_time\" content=\"2016-10-18T18:44:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/machine.market\/blog\/wp-content\/uploads\/2016\/10\/Doug-Oberhelman-Caterpillar-CEO-machine.market.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"3200\" \/>\n\t<meta property=\"og:image:height\" content=\"1680\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/machine.market\/blog\/#organization\",\"name\":\"CraneMarket | Cranes for Sale and Rent\",\"url\":\"https:\/\/machine.market\/blog\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/machine.market\/blog\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/machine.market\/blog\/wp-content\/uploads\/2019\/03\/crane-market-logo.png\",\"width\":282,\"height\":81,\"caption\":\"CraneMarket | Cranes for Sale and Rent\"},\"image\":{\"@id\":\"https:\/\/machine.market\/blog\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/machine.market\/blog\/#website\",\"url\":\"https:\/\/machine.market\/blog\/\",\"name\":\"MachineMarket Blog\",\"description\":\"Machine News\",\"publisher\":{\"@id\":\"https:\/\/machine.market\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/machine.market\/blog\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/machine.market\/blog\/wp-content\/uploads\/2016\/10\/Doug-Oberhelman-Caterpillar-CEO-machine.market.jpeg\",\"width\":3200,\"height\":1680,\"caption\":\"Caterpillar's Doug Oberhelman will retire after 41 years.\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/#webpage\",\"url\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/\",\"name\":\"Caterpillar CEO to retire next year after 41 years with company - MachineMarket Blog\",\"isPartOf\":{\"@id\":\"https:\/\/machine.market\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/#primaryimage\"},\"datePublished\":\"2016-10-18T18:44:06+00:00\",\"dateModified\":\"2016-10-18T18:44:06+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/\"]}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/#webpage\"},\"author\":{\"@id\":\"https:\/\/machine.market\/blog\/#\/schema\/person\/d55314291bc2800387533231d1e82150\"},\"headline\":\"Caterpillar CEO to retire next year after 41 years with company\",\"datePublished\":\"2016-10-18T18:44:06+00:00\",\"dateModified\":\"2016-10-18T18:44:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/#webpage\"},\"publisher\":{\"@id\":\"https:\/\/machine.market\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/cranemarket.com\/blog\/caterpillar-ceo-to-retire-next-year-after-41-years-with-company\/#primaryimage\"},\"keywords\":\"caterpillar\",\"articleSection\":\"Constuction &amp; Business News,Manufacturer News\",\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\"],\"@id\":\"https:\/\/machine.market\/blog\/#\/schema\/person\/d55314291bc2800387533231d1e82150\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/machine.market\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/6761c958e8b054582d0855a0e4bc5407?s=96&d=mm&r=g\",\"caption\":\"admin\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/posts\/7724"}],"collection":[{"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/comments?post=7724"}],"version-history":[{"count":0,"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/posts\/7724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/media\/7726"}],"wp:attachment":[{"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/media?parent=7724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/categories?post=7724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/machine.market\/blog\/wp-json\/wp\/v2\/tags?post=7724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}