Though things aren’t looking any brighter for Caterpillar on the financial front, chairman and CEO Doug Oberhelman says he is pleased with the effects of an ongoing cost reduction plan.
The company today reported first quarter sales and revenues of $9.5 billion, down 26 percent from the first quarter of 2015.
Operating profit plummeted 71 percent to $494 million for the quarter. In light of the earnings, Cat has slightly decreased its outlook for 2016.
“While many of the industries we serve are challenged, we remain focused on what we can control: the quality of our products, our market position, safety in our facilities and continued restructuring and cost reduction,” Oberhelman explained in a statement.
“In fact, our period costs and variable manufacturing costs in the quarter were nearly $500 million lower than the first quarter of 2015.”
Caterpillar began a cost reduction plan in the 4Q designed to save the company $1.5 billion over the next few years. As part of the plan, the company estimated workforce cuts from 3Q totals could reach as high as 10,000 by 2018.
