More indications on the health (or otherwise) of the global economy from a Caterpillar announcement overnight
Caterpillar is a huge manufacturer of heavy industrial equipment, notably construction and mining equipment (their core businesses). The company is often considered a 'bellwether' for the health of the global economy. So, the news is not a reassuring sign. Hardly surprising, though, given the core focus of their business and how conditions have declined in those sectors.
- Said it will cut 4-5,000 jobs by the end of this year
- Could cut more than 10,000 through to 2018
- Say the moves are a response to weakness in the mining and energy sectors
- Cut 2015 sales forecast by $1 billion to $48 billion (was $55.2 billion in 2014). Said 2015 will be the 3rd year in a row of lower revenues
Caterpillar CEO Doug Oberhelman:
"We are facing a convergence of challenging marketplace conditions in key regions and industry sectors - namely in mining and energy"
