Pit & Quarry, November 2015

Cat announces cost reduction plans to lower operating costs Caterpillar Inc announced several major cost reduction plans to lower Cats operating costs by about 15 billion Cost reduction plans include cutting jobs creating a retirement enhancement plan and reorganizing several divisions Cat says this year is the companys third consecutive down year for sales and revenues If this trend continues into 2016 it would mark the first time in the companys 90 year history that sales and revenues have decreased four years in a row We are facing a convergence of challenging marketplace conditions in key regions and industry sectors namely in mining and energy says Doug Oberhelman Cat chairman and CEO While weve already made substantial adjustments as these market conditions have emerged we are taking even more decisive actions Cat says cost reduction steps will begin in late 2015 to reflect current and expected market conditions For 2015 the companys sales and revenues outlook has weakened with 2015 sales and revenues expected to be about 48 billion which is about 1 billion lower than its previous outlook For 2016 sales and revenues are expected to be about 5 percent below the 2015 outlook Cat plans to cut between 4000 and 5000 jobs by the end of 2016 to help reduce operating costs Cat might cut more than 10000 jobs between now and 2018 Cat will also offer a voluntary retirement enhancement program for qualifying employees by the end of 2015 to reduce costs In addition slightly less than half of the 15 billion of cost reduction is expected to be from lower selling general and administrative costs The reduction in selling general and administrative costs will largely be in place and effective in 2016 Remaining cost reductions are expected to come from lower period manufacturing costs including savings from additional contemplated facility consolidations and closures which could influence more than 20 facilities and slightly more than 10 percent of Cats manufacturing square footage Some of these reductions are expected to be effective in 2016 Cat also announced a reorganization EQUIPMENT NEWS of its dealer and customer support divisions Chris Curfman Cats vice president for the Mining Sales and Support division plans to retire Dec 31 His division will be integrated into the existing Global Mining machine business division NEED TO MOVE IT WE CAN HANDLE IT CWW Conveyor Systems LLC CWW headquartered in Hillsville VA focuses on sales and support for former Caterpillar conveyor systems products Whether you are looking for a new conveyor system or replacement components CWW has the knowledge and expertise to provide you with the best solution for your application Rolls and Idler Assemblies Belt Cleaners Rock Dusters Surface Conveyor Systems 107 Raintree Road Hillsville Virginia 24343 1 800 457 7655 www cwwconveyors com ConveyorSales@ cwwconveyors com Belt Terminal Groups Extend belt life while reducing operating costs Underground Exalon Rolls Conveyor Systems Pulleys www pitandquarry com November 2015 PIT QUARRY 13