Tuesday, January 27

Caterpillar to cut 20k jobs

CATERPILLAR said on Monday that quarterly earnings fell more than 32% and warned of a tough year ahead as the downturn that began in the US gre into a full-blown global recession that hit sales of its earth-moving equipment. The company also warned that profit in 2009 would be under severe pressure and that it would cut about 17,000 workers and buy out 2,500 others, to reduce costs in the face of what it predicted would be the weakest year for business since the end of World War II. The news sent the company’s shares skidding more than 10% in pre-market trading. The company reported a fourthquarter profit of $661 million, or $1.08 a share, compared with $975 million, or $1.50 a share, last year.
Results last week from rival CNH Global and a profit forecast cut from Komatsu starkly confirmed that global demand for construction and mining equipment took a sharp turn down in the fourth quarter.

1 comment:

SBL said...

Very helpful post...

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