Caterpillar’s 4Q Profit Drops; Plans to Cut 20,000 Jobs

Heavy equipment and diesel engine maker Caterpillar Inc. said Monday its fourth-quarter profit fell 32% and that it would cut 20,000 jobs worldwide.

Caterpillar, a component of the Dow Jones industrial average, earned $661 million, or $1.08 per share, down from $975 million, or $1.50, a year earlier. Revenue rose 6% to $12.92 billion.

“Global economic conditions and key commodity prices have continued to decline significantly,” Caterpillar said in its outlook. “We have initiated actions which will remove about 20,000 workers from our business and every indirect spend dollar will be heavily scrutinized.”

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.