Caterpillar Inc. said Monday it will reduce its workforce by about 20,000 after the heavy equipment company announced a quarterly profit decline of 32 per cent.
The Peoria, Ill.-based firm said its fourth-quarter earnings fell to $1.08 US a share, down from $1.50 a share in the same quarter of last year.
Faced with higher operating costs and the economic downturn, Caterpillar said it will remove about 20,000 workers from its business. The company employs over 100,000 workers worldwide.
"While 2008 was our sixth consecutive year of record sales and revenues, it was an extraordinarily challenging year," said Caterpillar chairman and CEO Jim Owens.
"Through the first three quarters we experienced booming demand from key global industries, notably mining and energy, and most emerging market countries. Delivery times for many products were extended, and we were focused on increasing production and expediting shipments to meet customer needs.
"Then we were whipsawed in the fourth quarter as key industries were hit by a rapidly deteriorating global economy and plunging commodity prices," Owens said.
The company said it expects its 2009 sales and revenues will be in a range of $36 billion to $44 billion. At $40 billion, the company expects to achieve profit of $2.50 per share, excluding redundancy costs for its workers.
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