Caterpillar

[BlueKelah]

On Thursday, the industrial giant announced plans for it to cut as many as 10,000 jobs as part of a restructuring plan in the face of what it called "a convergence of challenging marketplace conditions in key regions and industry sectors — namely in mining and energy."

In early trading on Thursday, shares of the company were down over 7%.

Year-to-date, the stock is down about 25%.

Caterpillar is seen as a bellwether for the global economy because its equipment is big, expensive, and often the kind of investment a company makes only when it feels confident about its prospects and the global economy.

Additionally, Caterpillar has been seen as one of the leading indicators on China's economic slowdown given the decline in the company's sales in that region over the past several years. This news out of Caterpillar follows a warning earlier this week from its UK-based rival JCB that it would cut jobs because of a slowdown in Russia, China, and Brazil.

In its announcement on Thursday, Caterpillar noted that 2015 would be its third straight year of sales declines. With sales also expected to decline in 2016 to around $48 billion, the company could be looking at its first four-year stretch of sales drops in its 90-year history.

Full article : CATERPILLAR WARNS: Bad news is 'converging' and now we have to make some major changes

[greengiraffe]

On Thursday, the industrial giant announced plans for it to cut as many as 10,000 jobs as part of a restructuring plan in the face of what it called "a convergence of challenging marketplace conditions in key regions and industry sectors — namely in mining and energy."

In early trading on Thursday, shares of the company were down over 7%.

Year-to-date, the stock is down about 25%.

Caterpillar is seen as a bellwether for the global economy because its equipment is big, expensive, and often the kind of investment a company makes only when it feels confident about its prospects and the global economy.

Additionally, Caterpillar has been seen as one of the leading indicators on China's economic slowdown given the decline in the company's sales in that region over the past several years. This news out of Caterpillar follows a warning earlier this week from its UK-based rival JCB that it would cut jobs because of a slowdown in Russia, China, and Brazil.

In its announcement on Thursday, Caterpillar noted that 2015 would be its third straight year of sales declines. With sales also expected to decline in 2016 to around $48 billion, the company could be looking at its first four-year stretch of sales drops in its 90-year history.

Full article : CATERPILLAR WARNS: Bad news is 'converging' and now we have to make some major changes

nothing surprising since mining equipment is a derived demand... amah garden is coming... keep spreading the bad news

[weijian]

nothing surprising since mining equipment is a derived demand... amah garden is coming... keep spreading the bad news

Most of the time, it is confirmation bias at work. We need social proof to prove our own perception of what is to be. Looking for such information and having folks buy it off reinforces that. Ironically and interestingly, when some1 disagrees with one's posting, there is a good degree that the people's view is reinforced even more.

But i have to comment that GG you do post a good deal of articles that are generally balanced.

[dividendplanet]

It's a typical cycilical stock which performs bad whenever global growth is sluggish and performs stellar, when growth is high.

I find it extraordinary that CAT has been able to raise their dividend for 22 years in a row. This means that they are conservatively managed and they have the ability to ride out the downturns in the economic cycle:

Catepillar dividend data

If you look at the link, notice how their earnings per share fell during the last recession, but also notice how their dividends kept going up at the same time.