IRVING, Texas - Caterpillar Inc. (NYSE: NYSE:CAT), a global leader in construction and mining equipment with a market capitalization of $181.7 billion, announced today that Chief Human Resources Officer (CHRO) Cheryl H. Johnson will retire on April 30, marking the end of her seven-year tenure with the company. According to InvestingPro data, the company maintains a "GREAT" financial health score, reflecting its strong market position.
Cheryl Johnson's career at Caterpillar has been noted for aligning the human resources function with the company's strategic direction, emphasizing talent development, and fostering a culture of continuous improvement. Chairman and CEO Jim Umpleby commended Johnson for her dedicated service and contributions to the company's workforce strategies.
The search for a new CHRO is currently underway as Caterpillar prepares for this leadership transition. Johnson's previous experience includes a 20-year tenure at Textron (NYSE:TXT), where she was part of the executive leadership team and oversaw various corporate functions.
In addition to her role at Caterpillar, Johnson serves as a board member for Flowserve Corporation (NYSE:FLS) and the HR Policy Association, and is a member of the Executive Leadership Council. Her academic credentials include a master's degree in business administration and a bachelor's in operations management from Northern Illinois University.
Caterpillar, with 2023 sales and revenues of $67.1 billion, has established itself as the foremost manufacturer in its industry, with a product range that includes construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Trading at a P/E ratio of 17.4, the company has demonstrated strong shareholder commitment by maintaining dividend payments for 55 consecutive years and implementing aggressive share buyback programs. InvestingPro analysis indicates the stock is currently fairly valued, with 10+ additional exclusive insights available to subscribers. The company has been instrumental in driving construction and infrastructure growth worldwide for nearly a century and is actively engaged in the transition towards a reduced-carbon future.
This announcement is based on a press release statement from Caterpillar Inc. The company continues to operate across various segments, including Construction Industries, Resource Industries, and Energy & Transportation, and offers financing and related services through its Financial Products segment.
In other recent news, Caterpillar Financial Services Corporation issued $1.25 billion in Medium-Term Notes, providing additional capital to support its operations and strategic initiatives. Meanwhile, Barclays (LON:BARC) maintained an Equalweight rating on Caterpillar, noting copper as a smaller but growing market for the company. Evercore ISI downgraded Caterpillar's stock from 'In Line' to 'Underperform', citing potential earnings risks and competitive pressures.
DA Davidson raised its price target for Caterpillar to $350 from $337, acknowledging the company's mixed performance across different sectors. Oppenheimer maintained its Perform rating on Caterpillar, citing a challenging outlook for the fourth quarter due to contrasting trends within its business segments.
Caterpillar reported a 4% year-over-year decrease in Q3 sales, totaling $16.1 billion, primarily due to weaker performance in the Construction Industries and Resource Industries segments. Despite this, the company maintained a steady adjusted operating profit margin of 20% and an adjusted profit per share of $5.17.
The company also announced a multiyear capital investment to enhance its large reciprocating engine capacity, aiming to increase production capability by over 125% compared to 2023. Caterpillar's backlog slightly increased to $28.7 billion, indicating healthy demand in certain sectors. These are all recent developments in the company's operations.
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