When asked about the company's outlook, Sutherlin said both he and his customers have been disappointed with the lack of growth thus far. He said everyone expected the recovery to be farther along as this point than it is. However, Joy's order rate has been consistent, indicating things have stabilized. Looking at the projects that his customers are planning, it's looking very solid.
In the end, Sutherlin said, there may be weakness in the short term but looking longer term he sees only upside for Joy Global. Cramer said he agreed with Sutherlin's outlook and remains optimistic, even though shares are down for Action Alerts PLUS.
Executive Decision: Bob Dudley
In his second "Executive Decision" segment, Cramer sat down with Bob Dudley, CEO of BP (BP). Three years after the Macondo oil spill in the Gulf of Mexico, Cramer said BP has become a terrific company, beating earnings by 22 cents a share and paying a hefty 4.9% dividend yield. However, it is still being held back by litigation despite having $42 billion in reserves set aside for damages.
Dudley said BP has always acknowledged there was a terrible accident in the Gulf of Mexico and immediately stepped up to meet all its obligations, which it has continued to do for the past three years.He said BP remains committed to paying all legitimate claims for damages but that process has been hijacked by broad interpretations of the company's settlement agreement. BP plans to fight against the illegitimate claims that have nothing to do with the oil spill. Outside of the litigation, Dudley said BP is not being distracted and has growth and momentum going in its favor with a huge pipeline of new projects in the works. He said BP will remain primarily an oil producer but it does have some natural gas projects in the works as well. When asked about rising gasoline prices here at home as our country continues to export gasoline and other refined products, Dudley said U.S. gasoline prices are set by the global price of oil, which has been once again on the rise. He noted that every time prices go up, the oil industry is investigated. Unfortunately, there is little the industry can do to break the global linkage.
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