Caterpillar to cut 20,000 jobs

Roadpig · Jan 26, 2009

I wonder what this means for us. I've hauled quite a bit of Cat freight since I've been in this business.

Caterpillar says to cut 20,000 jobs

By James B. Kelleher

CHICAGO (Reuters) – Caterpillar Inc said on Monday that quarterly earnings fell more than 32 percent and warned of a tough year ahead as the downturn that began in the United States metastasized 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 said 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 Two.

The news sent the company's shares skidding more than 10 percent in premarket trading.

The company reported a fourth-quarter profit of $661 million, or $1.08 a share, compared with $975 million, or $1.50 a share, last year.

Sales rose 6 percent to $12.92 billion.

Analysts, on average, expected the Peoria, Illinois-based company to report a profit of $1.28 a share on sales of $11.97 billion.

After shrugging off the downturn in U.S. housing that sparked the worldwide crisis, Caterpillar and other makers of bulldozers, dump trucks and excavators have suddenly faced a world of challenges, including a drop in spending by their well-heeled energy and mining customers.

Results last week from rival CNH Global NV and a profit forecast cut from Komatsu Ltd starkly confirmed that global demand for construction and mining equipment took a sharp turn down in the fourth quarter.

"We knew Caterpillar was going to be a disaster." said Eli Lustgarten, an analyst at Longbow Research. "We just didn't know the magnitude of it. And it's ugly."

(Reporting by James Kelleher; Editing by Steve Orlofsky)

mjolnir131 · Jan 26, 2009

there are lots of companies that their reports are due out this week this is just the first of a very very long ugly week

layoutshooter · Jan 26, 2009

The auto makers might have to kill to make a profit now. Obama has just driven what may end up being the final stake into the heart of the auto industry. He reversed a Bush administration policy that forbade states from requiring seperate polution standards. Now the auto makers could potentially have to produce different engine/polutions packages for 50 states. The left has been trying for years to do in the auto industry, they might have done it now. And to think the UAW backed this guy. Talk about being gulable. Layoutshooter

jaminjim · Jan 26, 2009

No, you have it wrong, we will all just follow our favorite state of California into the crapper with Carb leading the way.

layoutshooter · Jan 26, 2009

Well, he was NEVER my President, is he still yours all you Obama bums? Just wait. There will be lots more stupidity to come. With any luck it will kill your job too. You asked for it, you got it!! At least you can't say I had anything to do with electing this idiot. Layoutshooter

chefdennis · Jan 26, 2009

Get ready, this is just the beginning. You will see massive layoffs this yr when the companies like Caterpillar who do as much if not more business oversize get taken out by osambas "Trade Barriers..." :

(this might be a LIE, HOAX, Completely Made up a half truth or the Complete truth, you decide...

From The TimesJanuary 26, 2009

American exporters in last-ditch attempt to stop Obama raising the trade barriers

Carl Mortished and Suzy Jagger
American exporters in last-ditch attempt to stop Obama raising the trade barriers - Times Online

A coalition of leading American exporters, including Boeing, Caterpillar and General Electric, is trying to stop a “Buy America” clause being included in President Obama’s $825 billion stimulus package.

The American Steel First Act would ensure that only US-made steel was used in $64 billion of federally funded infrastructure projects.

The money, earmarked for roads, bridges and waterways, is aimed at kickstarting the economy, but the initiative by steelmakers, which secured support last week in the House of Representatives Appropriations Committee, is opposed by American exporters, who fear retaliation by foreign governments.

Their concern is given credence by the European Commission and by Eurofer, the association of European steelmakers, which said that it would urge the European Union to challenge the “Buy America” clause at the World Trade Organisation.

He said: “It looks like they are trying to shut out imports. If we have the means to attack that under WTO rules, we would urge the Commission to do so.”
A spokesman for the European Commission said that America was a signatory to the Government Procurement Agreement, a WTO treaty aimed at ensuring fair access to state investment programmes.

You can finish reading the article at the link provided above..

layoutshooter · Jan 26, 2009

The beginning of the end. Marxism rules. Impeach Obama!!!!! It should be easy, it won't be long till he commits a felony or tries to cover-up crimes that one or more of his cabinet members commit. This is a VERY corrupt bunch. Layoutshooter

Moot · Jan 26, 2009

When Panther lost the Caterpillar contract last year I figured it would have a negative impact on my business. But it forced Panther to diversify its customer base which has proven to be beneficial during this economic downturn.

layoutshooter · Jan 26, 2009

Very true Moot, but sooner or later they will kill off enough big manufacturing that it will no longer be able to diverisfy. Layoutshooter

chefdennis · Jan 26, 2009

Since 8 am cst we have been told of 35,000 job cuts through layoffs:

Of course this my be a LIE, Hoax, half truth or completely true, you decide

US-BUSINESS SummaryJan 26 2009 9:46AM EST
FT.com / Companies / Industrials - Caterpillar cuts 20,000 jobs

Caterpillar says to cut 20,000 jobs

CHICAGO (Reuters) - Caterpillar Inc said on Monday that quarterly earnings fell more than 32 percent and warned of a tough year ahead as the downturn that began in the United States metastasized 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 said 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 Two.

Home Depot to cut 7,000 jobs, exit Expo business

CHICAGO (Reuters) - Home Depot Inc said it will cut 7,000 jobs, or about 2 percent of its workforce, as it shuts its Expo home design centers business and cuts down on corporate support staff. The home improvement retailer also said on Monday it is freezing the salaries of all officers as it looks to save money in a prolonged retail slump.

Sprint Nextel to cut up to 8,000 jobs

NEW YORK (Reuters) - Sprint Nextel Corp , the No. 3 U.S. mobile service provider, said it would eliminate up to 8,000 jobs, or about 14 percent of its workforce, under a plan to cut labor costs. Sprint's plan, which it hopes will shrink costs by about $1.2 billion a year, comes about one month after rival AT&T Inc said it would eliminate 12,000 jobs, or about 4 percent of its staff.

Roadpig · Jan 26, 2009

OntarioVanMan said:
What the sam hill was he thinking....oh wait he doesn't think on his own...he's just a trained porch monkey!!

Wow. I'm quoting this for the ignorant racism. I hope that the mods don't allow this type of behavior on the boards.

I can deal with the political crap, but this is indefensible.

Obama has been President for six days. We have to wait to see how his policies work. They can't be much worse than what we got the last eight years.

I tell you this, you all put too much stock in your "side" when it comes to politics.

Recession? Not Bushes fault. Not Obama's and we don't know what his policies will end up doing.

Why don't we hope for the best instead of feeding into the stereotype of ignorant racist truckers?

layoutshooter · Jan 26, 2009

I am not ignorant, I can't spell, but I am NOT stupid. We know that the new policy reguarding auto polution standards will at best cause great harm to the industry. I believe is it part of a bigger plan from the "left" for lack of a better term, to destroy our industrial base. The goal is to insure that we will no longer be a military force. You are correct, Bush did not cause this recession. Recessions and depressions are part of a cycle that has be going on for a couple of hundred years at least. Some of his policies might have contributed but so did many poilicies the Dumbecrats put in going back to Carter and maybe all the way back to the '30's. It can take 30-50 years of messing up to see the full effect. Obama is "owned" by someone. A man with so little actual work expericance could not move up to President without a TON of money. He does not have the talent, brains or backround for the job. Everything he has done so far is moves championed by the far left. He is out, pushed by his owners, to take away our rights and freedoms and turn us into a Marxist dictatorship. If that makes me a racist then I must be one. He is someones puppet and I really want to know who is pulling his strings. Layoutshooter

layoutshooter · Jan 26, 2009

LOL, I only call it the way I see it. Anyone one can be bought. I feel that this man has been. He sold himself to whom ever in return for power. The highest paid political :censoredsign:

in the country. Layoutshooter

chefdennis · Jan 26, 2009

OVM, 1st, as much has i have no desire to see osamaba succeed, even i knew their was no intent at racism on your part, its all good.

Now with more industries falling with loses they can't sustain, since the gvernment has already set the tome with the bailouts of banks, insurance companies and the auto industries, any compnay that is "too big to fail" will be running to the government looking for their fair "share".. The government will be finanically incharge of more and more industries in our country.. That my friends is socialism. The government will become strong and the people weaker and under the control of government and depending on that same government for the jobs, health care retirement (when they grab your 401k's and "private retirement accounts). You may have set yourself up for a nice retirement with all the bennies, but when the government turns socialist, you will be getting the same thing the guy next door to you that didn't do a thing to prepare, he will just get the "extra you paid in as the governments way of "sharing the wealth....

You give him a chance for his policy of "hope and change", I'll pray he totally fails.....

Nadal · Jan 26, 2009

This Caterpillar thing is gonna hurt bad TriState....

dhalltoyo · Jan 26, 2009

And now we return you to our regularly scheduled topic.

Let's stay focused on Caterpillar.

Thanks folks!

Roadpig · Jan 26, 2009

OntarioVanMan said:
ok... porch pooch? trained seal maybe? puppet?

There was no intent...sorry if it offended you i'll edit it...

You can't say that there was no intent for using a known racial epithet.

Your problem is that he's both black (ding ding) and a Democrat.

If only he were gay he'd have the market cornered on your hate, huh?

But pastor Dave is right, the topic at hand is Caterpillar. Thank you, sir.

BTW, I don't hold grudges, so you and I are cool, Vanman. I just cannot stand racism.

Roadpig · Jan 26, 2009

chefdennis said:
OVM, 1st, as much has i have no desire to see osamaba succeed, even i knew their was no intent at racism on your part, its all good.

Give me a break. And congrats on wanting America to fail you patriotic American, you.

pelgrn · Jan 26, 2009

I only have hear say from Cat people,but there say they gonna shutdown Mossville and move it to T.X and same with Decatur going to North Little Rock,of course these plants will have half the staff.

moose · Jan 26, 2009

chefdennis said:
Since 8 am cst we have been told of 35,000 job cuts through layoffs:

Of course this my be a LIE, Hoax, half truth or completely true, you decide

US-BUSINESS SummaryJan 26 2009 9:46AM EST
FT.com / Companies / Industrials - Caterpillar cuts 20,000 jobs