Caterpillar Reports First Loss in 16 Years
Heavy equipment and diesel engine maker Caterpillar Inc. said Tuesday it took its first quarterly loss in 16 years.
The company said it lost $112 million, or 19 cents a share, in the first quarter, compared with net income of $922 million, or $1.45, a year ago.
Sales fell 22% to $9.23 billion, the company said in a statement.
Caterpillar cut more than 24,000 jobs worldwide since December and has imposed temporary shut-downs, partial workweeks and pay cuts to cope with the global credit crisis and recession, Bloomberg reported. (Click here for previous coverage.)
The company had costs of $558 million, or 58 cents a share, related to reducing its employment levels, Bloomberg said.
Caterpillar cut its full-year earnings forecast to $1.25 per share before restructuring costs, on sales of $31.5 billion to $38.5 billion, down from a previous forecast of $2.50 a share on sales of $36 billion to $44 billion.
Caterpillar said last June it will pull out of the North American Class 8 truck engine market by 2010, except for a severe-duty truck and engine in partnership with Navistar International Corp.
