Caterpillar said today it is cutting as many as 5,000 jobs from now until year-end 2016. Caterpillar also warned that total layoffs could climb to more than 10,000 through 2018 and that sales and revenue could drop in 2016 for a record fourth straight year. Caterpillar shares were getting pounded in late-morningtrading, falling $4.41, or 6.3%, to $65.79, but its off its lowest levels of the day.
Shares of heavy-equipment maker Caterpillar (CAT) are down sharply after the company said today it is cutting its sales outlook for the year and will slash as many as 5,000 jobs between now and the end of 2016 in a cost-cutting move amid tough conditions in its energy, mining and construction businesses.
In a sign of stress, the company said it is on track for its third consecutive down year for sales and revenues, adding that “2016 would mark the first time in Caterpillar’s 90-year history that sales and revenues have decreased four years in a row.”
“We are facing a convergence of challenging marketplace conditions in key regions and industry sectors – namely in mining and energy,” Doug Oberhelman, Caterpillar’s Chairman and CEO said in a statement. “While we’ve already made substantial adjustments as these market conditions have emerged, we are taking even more decisive actions now. We don’t make these decisions lightly, but I’m confident these additional steps will better position Caterpillar to deliver solid results when demand improves.” Read more…