The world's largest construction equipment manufacturer, Caterpillar Inc, said today it would slash 20,000 jobs and lowered profit estimates, despite record revenues in 2008, amid the widening recession, according to DPA. The job cuts included 12,000 employees and 8,000 contractors, the Peoria, Illinois-based company said, as it attempted to combat lower demand and cancelled orders in the fourth quarter. Caterpillar, the world's largest manufacturer of bulldozers and excavators, said even US President Barack Obama's new 825-billion- dollar economic stimulus package would not be sufficient to boost private construction. The company announced revenues of 51.3 billion dollars for 2008, up 14 per cent from the previous year. But fourth-quarter net income fell to 661 million dollars from 975 million dollars a year earlier. Caterpillar CEO Jim Owens acknowledged "booming demand" in the first three quarters especially in the mining and energy industries and emerging markets. "Then we were whipsawed in the fourth quarter as key industries were hit by a rapidly deteriorating global economy and plunging commodity prices," he said. "We expect 2009 will be the weakest year for economic growth in the post-war period."
