Doug Oberhelman, who recently took over the reins of Caterpillar (NYSE:CAT), is attempting to generate positive feelings about the company, saying he sees little chance there will be a double-dip recession, and confirms guidance for 2012 which had been given in 2009.
Oberhelman said, “We don’t think the world has ended. We think there is going to be fantastic growth in our industries in the future.”
He also said Caterpillar executives are positive about the global economy, and see it growing going forward, with little chance of another recession.
For 2012, Oberhelman said guidance continues to be earnings of $8 to $10 a share on revenue between $55 billion to $60 billion.
These comments were made in his first meeting with analysts since taking over as CEO in June.
This sounds way too optimistic to me, and doesn't take into account recent data showing the economy is either slowing extremely, or never moved out of the recession in the first place.
We have to remember that the government throwing hundreds of billions into the economy doesn't have anything to do with the underlying reasons for the recession, and as results show, once it worked its way through, the economic weakness remains.
The only reason I see for the optimism shown by Oberhelman is the comments made by the Federal Reserve that they're ready to do it all again if the economy begins to falter, and that has already started to happen.
With voters already outraged over the irresponsible government spending, it's hard to believe they'll do it all over again, but this administration and Ben Bernanke don't have any checks or balances, or restraint, when it comes to monetary policy, and that doesn't bode well for America, even if it gives a false impression we've moved out of the recession.
Showing posts with label Doug Oberhelman. Show all posts
Showing posts with label Doug Oberhelman. Show all posts
Friday, August 20, 2010
Thursday, July 22, 2010
Caterpillar (NYSE:CAT) Demolishes Analysts' Estimates, Increase Guidance
Caterpillar Inc. (NYSE:CAT) exceeded analysts' expectations by a large amount this quarter, as revenue for its four global regions increased for the period.
Earnings for the second quarter increased to $707 million, or $1.09 a share. Analysts were looking for $0.85 a share. Profits last year reached $371 million, a gain of over 90 percent this year. Revenue was up to $10.4 billion, a major improvement over the same quarter last year where they generated $8 billion in revenue.
Segments which performed the strongest including energy, mining and infrastructure-related equipment. Regions generating the biggest increase in sales included Asia/Pacific and Latin America.
Kent Adams, Cat Financial president and vice president of Caterpillar Inc., said this, "During the second quarter, portfolio quality began to show signs of improvement as economic conditions around the world continued to improve. Our focus in 2010 has been in three key areas: serving our Caterpillar customers and dealers, managing the portfolio and ensuring we have ample liquidity. While there are still economic concerns around the world, we are well positioned to support our customers as the recovery gains momentum."
CEO Doug Oberhelman also gave improved guidance for 2010, saying, "There are significant economic concerns around the world that we are watching closely, orders have continued to outpace our shipments, and we expect to increase production in the second half of the year."
Most the areas that the company excelled in came from good prices in the quarter, in relationship to mining, and building programs from the government for infrastructure projects.
Prices have fallen for commodities this quarter, and infrastructure projects in some areas have been cut back on.
Those factors could hold the company back from growth for the remainder of the year, as the economic outlook continues to be gloomy around the world, despite the assertions of an ongoing recovery, which really isn't happening.
Earnings for the second quarter increased to $707 million, or $1.09 a share. Analysts were looking for $0.85 a share. Profits last year reached $371 million, a gain of over 90 percent this year. Revenue was up to $10.4 billion, a major improvement over the same quarter last year where they generated $8 billion in revenue.
Segments which performed the strongest including energy, mining and infrastructure-related equipment. Regions generating the biggest increase in sales included Asia/Pacific and Latin America.
Kent Adams, Cat Financial president and vice president of Caterpillar Inc., said this, "During the second quarter, portfolio quality began to show signs of improvement as economic conditions around the world continued to improve. Our focus in 2010 has been in three key areas: serving our Caterpillar customers and dealers, managing the portfolio and ensuring we have ample liquidity. While there are still economic concerns around the world, we are well positioned to support our customers as the recovery gains momentum."
CEO Doug Oberhelman also gave improved guidance for 2010, saying, "There are significant economic concerns around the world that we are watching closely, orders have continued to outpace our shipments, and we expect to increase production in the second half of the year."
Most the areas that the company excelled in came from good prices in the quarter, in relationship to mining, and building programs from the government for infrastructure projects.
Prices have fallen for commodities this quarter, and infrastructure projects in some areas have been cut back on.
Those factors could hold the company back from growth for the remainder of the year, as the economic outlook continues to be gloomy around the world, despite the assertions of an ongoing recovery, which really isn't happening.
Wednesday, June 9, 2010
Caterpillar (NYSE:CAT) Officially Elects New CEO
True to their announcement in the last quarter of 2009, the Caterpillar (NYSE:CAT) board of directors has officially installed Doug Oberhelman as the new CEO of the company, replacing Jim Owens who is stepping down as CEO, but will remain Chairman through October 31.
Oberhelman will take over the duties of CEO on July 1, while Owens will retire on the October 31 date mentioned above. Owens will chair the board until then.
The last position in the giant mining and construction equipment-maker for Oberhelman was as Group President of the engine and gas turbine segment of the company.
Oberhelman will take over the duties of CEO on July 1, while Owens will retire on the October 31 date mentioned above. Owens will chair the board until then.
The last position in the giant mining and construction equipment-maker for Oberhelman was as Group President of the engine and gas turbine segment of the company.
Saturday, May 15, 2010
Caterpillar (NYSE:CAT) CEO Jim Owens Retiring
Popular and effective Caterpillar (NYSE:CAT) CEO Jim Owens will be retiring in June, and most industry observers say his legacy will be one where he is considered one of the best CEOs in the company's history, at this time considered only second to legendary Don Fites.
Owens was the successor of Fites, who successfully began the revamping of the company which most believe Owens finished.
The impressive performance of Caterpillar during the economic downturn was a testament to Owen's changes, which helped the company manage the cyclical business it is in, which under past performances outperformed in good times, but was clobbered in bad ones.
Other than one quarter where that had to take a big charge, the company was profitable throughout the downturn.
Owens changed that, and they're now considered better managers of the downside than the compay has ever been in its 85-year history, as Owens wasn't afraid to respond strongly and quickly to the economic challenges, cutting workers and his own pay to help battle it.
Even so, there will be work for incoming Caterpillar CEO Doug Oberhelman, who will have to shore up the supply chain which has let the company down in some cases, as they've had numerous orders lost because their suppliers weren't able to meet demand.
Up to Owens, Caterpillar has only had 12 CEOs in the history of the company, and Oberhelman will be the 13th.
Owens was the successor of Fites, who successfully began the revamping of the company which most believe Owens finished.
The impressive performance of Caterpillar during the economic downturn was a testament to Owen's changes, which helped the company manage the cyclical business it is in, which under past performances outperformed in good times, but was clobbered in bad ones.
Other than one quarter where that had to take a big charge, the company was profitable throughout the downturn.
Owens changed that, and they're now considered better managers of the downside than the compay has ever been in its 85-year history, as Owens wasn't afraid to respond strongly and quickly to the economic challenges, cutting workers and his own pay to help battle it.
Even so, there will be work for incoming Caterpillar CEO Doug Oberhelman, who will have to shore up the supply chain which has let the company down in some cases, as they've had numerous orders lost because their suppliers weren't able to meet demand.
Up to Owens, Caterpillar has only had 12 CEOs in the history of the company, and Oberhelman will be the 13th.
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