- The company now sees sales and revenues totaling just $48B this year, down $1B from the previous outlook. 2016 sales and revenues are expected to fall 5% from this year.
- In response, the company sets in place plans expected to cut operating costs by about $1.5B annually. Four thousand to 5K job cuts are expected by year-end 2016, with job cuts in total perhaps eventually reaching 10K.
- If 2016 revenues decline as expected, it would mark the first time in the company's 90-year history that revenues have fallen for four consecutive years.
- "We are facing a convergence of challenging marketplace conditions in key regions and industry sectors namely in mining and energy," says CEO Doug Oberhelman.
- Source: Press Release
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NYSE:CAT -6% premarket