Heavy construction and mining equipment maker Caterpillar reported falling earnings in the most recent quarter and as a result, job losses are expected in the second half of the year, but the company isn’t saying where those losses will fall.
Caterpillar Inc. reported consolidated sales and revenue of $10.3 billion for the second quarter of 2016, down 16 percent from $12.3 billion in the second quarter of 2015.
The company also announced profit per share of 93 cents for the second quarter of the year, a decrease from $1.31 per share in the second quarter of 2015.
Outside of restructuring costs, profit per share was $1.09, down from $1.40 per share in the second quarter of 2015, Caterpillar said.
In April, the company provided an outlook for 2016 in a range of $40 billion to $42 billion in sales and revenue.
“Over the past quarter, economic risks have persisted and, as a result, our current expectations for 2016 sales and revenues are closer to the bottom end of that outlook range,” the company said in a statement. “Restructuring costs in 2016, which were expected to be about $550 million, are now forecast to be about $700 million, or about $0.80 per share.”
The company added: “Additional workforce reductions expected in the second half of 2016 are the primary reason for the increase in restructuring costs.”
The company’s release did not say where those job cuts are expected to fall. Caterpillar has a 1.5-million-square-foot logistics center in Clayton just off Interstate 70, where about 600 people work. Last year, fewer than 10 people were let go at the facility, the company has said.
“We do not have specifics around locations or reductions to share at this time,” Caterpillar spokeswoman Rachel Potts said. “As workforce reduction decisions are made, we’ll first communicate to our employees.”
“We’re not expecting an upturn in important industries like mining, oil and gas and rail to happen this year,” Caterpillar Chairman and Chief Executive Officer Doug Oberhelman said in the company’s report. “We’re continuing significant restructuring plans, which are designed to bring our cost structure more in line with demand while maintaining our capability to quickly serve our customers when our business recovers.”
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