Strug­gling Cater­pil­lar to get new chief ex­ec­u­tive of­fi­cer

The Myanmar Times - - Business -

CATER­PIL­LAR has an­nounced that its chief ex­ec­u­tive was step­ping down as the heavy equip­ment maker suf­fers from a pro­longed slow­down in the min­ing sec­tor.

Doug Ober­hel­man will hand over reins as chief ex­ec­u­tive to Cater­pil­lar group pres­i­dent Jim Um­pleby on Jan­uary 1.

Mr Ober­hel­man took over at Cater­pil­lar in 2010 amid a boom­ing com­modi­ties mar­ket. But he has been crit­i­cised for engineering an US$8.8 bil­lion 2011 takeover of min­ing-equip­ment maker Bucyrus shortly be­fore the down­turn. The Wall Street Jour­nal called the in­vest­ment “spec­tac­u­larly mist­imed”.

Mr Ober­hel­man will step down as chair on March 1, to be re­placed by David Cal­houn, a current board mem­ber who will be­come non-ex­ec­u­tive chair.

Cater­pil­lar’s re­sults have been rav­aged the last cou­ple of years by the de­pres­sion in the min­ing sec­tor around the world, due pri­mar­ily to slower growth in China and the crash of oil prices.

In re­sponse, Cater­pil­lar has an­nounced re­peat rounds of job cuts and fa­cil­ity clo­sures. In July, Cater­pil­lar said it ex­pected ad­di­tional job cuts in the sec­ond half of 2016 as it re­ported a 31 per­cent call in sec­ond-quar­ter earn­ings to US$550 mil­lion.

Head­count at the end of the quar­ter was 100,0000, down about 10pc from a year ago. –

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