NEW YORK (TheStreet) -- Caterpillar(CAT) - Get Report posted second quarter 2016 earnings per share of $1.09, better than the expected 96 cents, but slashed its guidance for the year and announced it would continue to cut jobs.
CEO of Caterpillar, Doug Oberhelman, believes that the job cuts need to continue to maintain a stable position in global markets.
"We're going to get a little leaner and meaner before it's over with ... We're nearing the end [needing to cut jobs] but we'll do more tweaking here the end of this year," Oberhelman said on CNBC's "Squawk on the Street" on Tuesday.
While he was unwilling to comment on how many more job cuts there would be, Oberhelman pointed out that Caterpillar finished this past quarter with a workforce of about 112,000, down 35,000 from the company's peak workforce in 2012.
Oberhelman exuded frustration with the current economy and regulatory climate, noting that the current U.S. GDP growth expectation of 2% per year was not enough.
"There are structural things in our economy that can and will need to be changed like tax and some of the other things that we've got to get around. If we get some of that, I think we could see GDP move up fairly quickly," Oberhelman noted.
Additionally, Oberhelman thinks that the current rate of infrastructure building around the world is good but says "it is just not the rate we've seen and the rate we need to rebuild what is in this country and around the world." He believes that kind of infrastructure growth will come in the future, from 2017 and beyond, but only if exportation and trade are prioritized in the political sphere.
"If we don't have exports and can't trade with our partners somewhere around the world, guess what happens to those jobs," Oberhelman added. "I can't believe what's happened with the trade environment around the world lately. NAFTA's been good for this country. It's been good for our trading partners. We've all benefited from that."
Shares of Caterpillar are up 1.45% to $79.83 in late morning trading today.
Separately, TheStreet Ratings team rates Caterpillar as a "hold" with a ratings score of C+.
The primary factors that have impacted TheStreet's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, TheStreet Ratings team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CAT