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| Version 1 | Version 2 |
|---|---|
| Caterpillar reveals huge job cuts | Caterpillar reveals huge job cuts |
| (about 4 hours later) | |
| US construction and mining equipment maker Caterpillar has taken steps to cut around 20,000 jobs, amid falling sales and profits. | US construction and mining equipment maker Caterpillar has taken steps to cut around 20,000 jobs, amid falling sales and profits. |
| It said 5,000 jobs will be reduced in the first quarter, while around 15,000 jobs have already been eliminated. | It said 5,000 jobs will be reduced in the first quarter, while around 15,000 jobs have already been eliminated. |
| It employs 112,000 people worldwide, including 10,000 people in the UK. | It employs 112,000 people worldwide, including 10,000 people in the UK. |
| The majority of the job cuts will be in support and management, but the company is also implementing a shortened working weeks and factory shutdowns. | The majority of the job cuts will be in support and management, but the company is also implementing a shortened working weeks and factory shutdowns. |
| More details about where the cuts will fall are to be released by the company in the next few weeks. | More details about where the cuts will fall are to be released by the company in the next few weeks. |
| It is the latest big firm to announce massive job cuts. On Monday alone, companies worldwide said they planned to eliminate more than 50,000 jobs. | It is the latest big firm to announce massive job cuts. On Monday alone, companies worldwide said they planned to eliminate more than 50,000 jobs. |
| 'Very tough year' | 'Very tough year' |
| GLOBAL JOB CUTS Caterpillar - 20,000ING - 7,000Philips - 6,000Corus - 3,500Home Depot - 7,000Pfizer/Wyeth - 20,000General Motors - 2,000 | |
| "Without a doubt, 2009 will be a very tough year," chief executive Jim Owens said in a statement. | "Without a doubt, 2009 will be a very tough year," chief executive Jim Owens said in a statement. |
| Caterpillar's fourth-quarter net income fell 32% from a year ago to $661m (£482m) amid higher operating costs and a drop in its financial unit's profit. | Caterpillar's fourth-quarter net income fell 32% from a year ago to $661m (£482m) amid higher operating costs and a drop in its financial unit's profit. |
| "Fourth-quarter profit was disappointing, particularly in light of record fourth-quarter sales and revenues and a significant favorable tax adjustment," Mr Owens said. | "Fourth-quarter profit was disappointing, particularly in light of record fourth-quarter sales and revenues and a significant favorable tax adjustment," Mr Owens said. |
| "We knew Caterpillar was going to be a disaster. We just didn't know the magnitude of it. And it's ugly," said Eli Lustgarten, an analyst at Longbow Research. | "We knew Caterpillar was going to be a disaster. We just didn't know the magnitude of it. And it's ugly," said Eli Lustgarten, an analyst at Longbow Research. |
| For 2009, Caterpillar expects sales to be "in a range of plus or minus 10% of $40bn," significantly lower than its record sales of $51.3bn in 2008. | For 2009, Caterpillar expects sales to be "in a range of plus or minus 10% of $40bn," significantly lower than its record sales of $51.3bn in 2008. |