Caterpillar

Caterpillar

25 September 2015

Important legal information

This week, Caterpillar, the world’s biggest mining and building machinery producer cut its full-year sales and profit forecast. In addition, it also announced a cut of roughly 10.000 employees until 2018 in order to save USD 1.5 billion a year. The job cuts represent round about 10% of the companies headcount. This development is mainly linked to the price decrease in commodities markets and the cooling down of new order flow from emerging markets. Furthermore Caterpillar also suffers from the strong USD and a downturn in the US oil industry. Revenues for 2015 were corrected to USD 48 billion from a previous amount of USD 49 billion. Caterpillar already announced a decrease of revenue and profit in July. Analysts see Caterpillar as a cyclical indicator for the global business cycle and that it could show that the global economy is slowing down. According to Bloomberg, “consolidation and closings of factories may affect more than 20 plants.” Caterpillars CEO mentioned challenging marketplace conditions in the mining and energy sector.

 

 

08/12/2022 04:51:37