Caterpillar CEO Jim Umpleby expressed confidence about his firm’s technique and prospects, regardless of the extended commerce conflict between the world’s largest economies.

“We’ve navigated trade tensions in our 94-year history, this is not new for us,” he instructed “Mad Money” host Jim Cramer in a Thursday interview.

China makes up between 5% and 10% of Caterpillar’s gross sales, notably in hydraulic excavators, or demolition autos. Umpleby mentioned that enterprise “continues to be strong” regardless of an ongoing commerce dispute between the international locations that has seen tariffs levied on either side.

“We saw a big increase there in 2017, 2018, and it’s continuing in 2019 so far,” he mentioned. “We’re very comfortable still meeting our forecast dealing with those challenges, so, again, it’s a part of what we do. We’ve seen this before, we’ve been through it, we’ll manage our way through this situation.”

READ MORE   Gold buyers have been ready a very long time for this breakout second and it is taking place

The heavy equipment producer is seeing outcomes of its new technique for worthwhile progress that it launched in early 2017, across the identical time that Umpleby grew to become chief. Administration has centered on bettering working margins and constructing its companies enterprise, he mentioned.

Umpleby mentioned Caterpillar bested its 2014 margins in 2018 — it produced $55 billion price of gross sales every year.

“The Caterpillar team improved operating margin from 11% in 2014 to 16% in 2018 in just 4 years,” he defined. “Last year we achieved record earnings per share at that $55 billion sales level that was 17% below what we had in 2012 at $66 billion [sales].”

Final month, Caterpillar introduced its plans to double down on its digital functionality, Umpleby mentioned. The earth mover maker now has 850,000 linked machines and engines all over the world, a 70% enhance from its ranges in 2017, he mentioned. It is a manner for Caterpillar to spice up its companies operations.

READ MORE   Trump: So long as Manafort tells the reality, it's 100 perc...

Caterpillar needs to double the $14 billion in service income it produced in 2016 within the subsequent decade.

“We’re going for 1 million connected assets by the end of the year,” he mentioned. “And services is … everything that we do with a customer after we sell a new piece of equipment, and we’re working closely with our dealers to find more ways to add customer value through services.”

Shares of Caterpillar climbed greater than 2.3% throughout Thursday’s session. The inventory is up 5.16% this yr, however is off greater than 16% from its October excessive of about $159.

WATCH: Cramer talks commerce, companies and extra subjects with Caterpillar CEO Jim Umpleby

READ MORE   Trump says any struggle with Iran wouldn't final lengthy

Questions for Cramer?
Name Cramer: 1-800-743-CNBC

Need to take a deep dive into Cramer’s world? Hit him up!
Jim Cramer Twitter – Fb – Instagram

Questions, feedback, strategies for the “Mad Money” web site? [email protected]


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.