Caterpillar says it will bring in about a billion dollars less than expected this year and cut as many as 10,000 jobs by 2018. Bobbi Rebell reports.
Caterpillar slashed its revenue forecast for the year by a billion dollars. The world's biggest construction company could also cut up to 10,000 jobs through 2018. It has already rolled back on its workforce by more than 31,000 since mid-2012. Over the past year, miners and oil companies have slashed budgets and put expansion projects on hold as prices of raw materials such as crude oil and copper have plunged to six-year lows. Caterpillar's problems also have a lot to do with the slowdown in China's economy. Orders for equipment have dried up in that key market. Jeff Tomasulo, CEO, Vespula Capital: (SOUNDBITE) JEFF TOMASULO, CEO, VESPULA CAPITAL (ENGLISH) SAYING: "When you look at Caterpillar's numbers and you see what is going on, that is actually showing you the truth of what is going on in China's economy. We always talk about the phantom building that is going on there. Well, guess what, if they are not buying Caterpillar's products, that is your truth." Shares of Caterpillar hit hard- falling to a five-year low on Thursday. Catepillar is not alone. Deere, the world's largest maker of farm equipment announced layoffs of more than 900 employees in January.