caterpillar inc., the world<u+2019>s largest maker of heavy machinery, is optimistic president-elect donald trump will increase spending on u.s. infrastructure and reduce corporate tax and regulatory burdens. <u+201c>we<u+2019>re looking forward to building those bridges<u+2014>we<u+2019>re good at it and we have the right equipment for it,<u+201d> said kathryn dickey karol, caterpillar<u+2019>s vice president for global government and corporate affairs. she said the company was excited about mr. trump<u+2019>s calls for improving the country<u+2019>s transportation network. caterpillar was up more than 7% at $90.70 at the market open and stocks for major u.s. manufacturers were broadly up across the board in recent trading as investors weigh the prospect of mr. trump<u+2019>s presidency following tuesday<u+2019>selection. trading in other companies in the sector were mixed on uncertainty regarding trump<u+2019>s pledge to renegotiate trade deals and campaign promises to discourage companies from moving plants overseas. auto makers ford motor co. and general motors and automotive component makers were down in recent trading, while general electric and united technologies were higher. ms. karol said peoria, ill.-based caterpillar, which has a sprawling network of overseas facilities in countries including china and mexico, would continue to push for adoption of the trans-pacific partnership during the remaining days of the obama administration. while mr. trump was critical of that trade deal and others, ms. karol said the company would continue advocating for lowering trade barriers to expand its sales overseas. <u+201c>worried, not worried<u+2014>i think we see opportunity to advocate on the benefits of trade with this new administration and congress,<u+201d> she said. <u+201c>we<u+2019>re going to be very vocal about that.<u+201d> martin richenhagen, chairman and chief executive of farm equipment manufacturer agco corp. , said he is concerned about mr. trump<u+2019>s repeated support for trade protectionism during the campaign. georgia-based agco generates the majority of its sales in europe and south america. the company imports farm tractors and components into the u.s. <u+201c>that would be a nightmare if we make life difficult for imports and exports,<u+201d> said mr. richenhagen, who is in germany this week. <u+201c>we need to explain that to him. the europeans are very concerned.<u+201d> some smaller company leaders said they supported trump because of the then-candidate<u+2019>s calls to throw out trade deals that he said decimated the sector<u+2019>s employment and his support for u.s. manufacturing. <u+201c>people really felt like this is a guy that gives them a voice,<u+201d> said dan larson, owner of hydrosolutions of duluth inc., a minnesota company with 15 employees fabricating metal for the aviation industry. many companies are likely to welcome trump<u+2019>s promises to lower taxes and reduce business regulations as well as a continuation of business friendly republican majorities in congress. agco<u+2019>s richenhagen predicted that republican majorities in the u.s. house and senate will be receptive to mr. trump<u+2019>s domestic strategy to revive business investment and economic growth with lower taxes and less regulation. <u+201c>tax reform is easily done now,<u+201d> he said. ron defeo, chief executive of pennsylvania-based kennametal inc., which makes drilling tools for oil wells and metal-cutting machines, predicted that u.s. businesses will warm up to mr. trump if he is able to generate stronger u.s. economic growth in the coming years. <u+201c>i don<u+2019>t think you can begin to address the global problems when your domestic economy is stuck in neutral,<u+201d> he said. he predicted that mr. trump will show a more measured approach to trade policy as president than he showed during the campaign as a candidate. <u+201c>a little stiffer hand goes a long way to true up the [trade] deals that exist, but overreach will scare people,<u+201d> he said. marvin cunningham, president of the long-stanton manufacturing co. in the cincinnati area, has about 35 employees and makes components that wind up in products such as airplane brakes and gas station pumps, many of which are exported. he fears possible tariffs in response to mr. trump<u+2019>s potential trade policies. <u+201c>we<u+2019>ll have a smaller market now,<u+201d> mr. cunningham said. <u+201c>i don<u+2019>t see how that is good for us.<u+201d> but referring to mr. trump<u+2019>s criticism of companies that move jobs overseas, he noted that his small company had already shifted production from china back to the u.s. <u+201c>dodged a grenade,<u+201d> mr. cunningham said. write to andrew tangel at andrew.tangel@wsj.com and bob tita at robert.tita@wsj.com
manufacturers mixed on prospect of a donald trump presidency - wsj
andrew tangel bob tita