Caterpillar (CAT) on Tuesday named Joseph Creed as the company's next chief executive, succeeding D. James Umpleby III, effective May 1.

Creed, who is a 28-year Caterpillar veteran, currently serves as chief operating officer. Umpleby, who also serves as the company's chairman, will become executive chairman following the leadership change.

"In 2024, Caterpillar achieved record full-year adjusted profit per share, which increased more than sixfold during Umpleby's tenure as CEO," the construction equipment supplier said in a statement.

Shares of the company were down 1.7% in late Tuesday afternoon trade. The stock has slid about 19% over the past 12 months.

At the end of January, the company said it was expecting slightly lower full-year revenue compared with 2024, according to a FactSet transcript of an earnings conference call. The consensus on FactSet is for full-year sales of $63.55 billion, down from last year's $64.81 billion, which reflected a 3% annual drop.

The company on Jan. 30 projected lower year-on-year top line for the first quarter. Analysts are looking for revenue of $14.71 billion for the March quarter, down from $15.8 billion a year earlier.