After reading through the 2009 Profit Outlook of Caterpillar’s latest financial report (which was released and we blogged about yesterday), I’m more grateful than ever to have a job.
It’s pretty rough out there right now. And some of the manufacturers in our industry (like many of us) are being hit hard.
Cat Chairman and CEO Jim Owens said, “While 2008 was our sixth consecutive year of record sales and revenues, it was an extraordinarily challenging year.”
The company is taking “assertive action to respond to the global recession and a lower outlook for 2009” and getting prepared for a “very negative year.”
Owens says, “As a result of sharply declining sales, we expect 2009 profit to drop significantly from 2008, and we are taking actions to deliver our ‘trough’ profit target of $2.50 per share, excluding redundancy costs, at $40 billion in 2009 sales and revenues. We have initiated actions which will remove about 20,000 workers from our business and every indirect spend dollar will be heavily scrutinized. These actions support lowering our production costs in line with a 25-percent decline in sales volume and reducing SG&A and R&D costs supporting our Machinery and Engines business collectively by about 15 percent.
Actions include the following:
The Chicago Tribune reports that Moline, Ill.-based Deere & Co. is also making job cuts. The farm and construction equipment manufacturer will lay off nearly 700 workers between factories in Brazil and Iowa, according to the report.
Deere says it plans to let go of 502 workers at an agricultural harvesting equipment plant in Horizontina, Brazil, and 190 employees at a plant in Davenport, Iowa, which makes construction and forestry equipment, will be laid off or temporarily reassigned effective Feb. 16, the Chicago Tribune reports, attributing its source to an e-mail sent Sunday to The Associated Press by Deere Spokesman Ken Golden.
In the past six months, Deere has placed 188 employees on indefinite layoff at the John Deere Dubuque Works in Iowa, according to the report.
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// –>Let’s hope the economy improves soon and that the proposed stimulus package is reworked so it will actually make a positive impact. (I’m not really sure how $21 million for sod at the National Mall and $200 million for contraceptives is going to create the jobs necessary to help jumpstart the economy. But that’s just my humble opinion.)