Tuesday, July 26, 2016

More Layoffs Expected at Caterpillar

According to the Springfield State Journal-Register, Caterpillar's second quarter report indicated additional layoffs are expected in the second half of 2016.

Second-quarter sales were down 16 percent from the previous term in 2015, going from $12.3 billion to $10.3 billion.

The company pointed to "soft global markets and political turmoil" as reasons for a dim outlook for the rest of the year, specifically citing the Brexit vote and the unrest in Turkey as factors of global uncertainty that added to the current subdued world economic growth.

The largest manufacturer of construction and mining equipment also revised its restructuring costs and predicted more layoffs in the second half of 2016. Last fall the company announced a major restructuring that called for up to 10,000 white-collar positions to be cut.

The second-quarter report predict restructuring costs to be about $700 million, or 80 cents per share, up from the previous prediction of $550 million.

Information provided by the State Journal-Register

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