In his remarks at the 2016 annual shareholders meeting, Chairman and CEO Doug Oberhelman said there was every reason to be confident in Caterpillar. The meeting was held at a Progress Rail facility in Muncie, Indiana and Doug said, “Our rail and transit business is a great illustration of that confidence which has always defined Caterpillar . . . When we entered the rail and transit industry, we entered it to win.”
“[Our] confidence serves us well when cycles are up and when they are down. And there is no doubt we are in a long and deep down cycle. But we are confident in our strategy, our execution, and our future.” Doug cited our proven Seed. Grow. Harvest. business model and said, “We’re stepping up even more by focusing on digital technology, Lean manufacturing and our incredible dealer network – all to serve our current customers better, and win new ones.”
Echoing facts employees know well by now, Doug said there are difficult external conditions, but Caterpillar remains financially strong. As of the end of 2015, “We held $6.5 billion of cash, which gives us the financial strength to manage now and prepare for future opportunities.”
“Part of being confident means making the tough decisions to align costs with lower demand, and we’re doing that,” Doug said. “This is painful and hard on our people and communities, but it’s absolutely necessary to ensure Caterpillar’s future.”
Doug also said we were “confident in our future because we know, as world population grows, so will the demand for transportation, energy and infrastructure – all of which require Caterpillar products and services.”
He concluded his remarks this way:
“We know how to manage successfully through every type of cycle. We are the market leader, for the most part, in each of our major product categories. This is an enviable position in good times and absolutely essential in times like this when the industries we serve are down.
“Because of Caterpillar’s market leadership, expertise and innovation; because of our proven strategy and unparalleled dealer network: We know there are many promising roads ahead!
“And Caterpillar is confident – as we have been since 1925 – that we will lead the way along every one of those roads.”
Click here to read Doug’s full remarks.
