Hey sports fans, this is not good news. If the second half was going to recover as Oberhelman has suggested it is unlikely Cat would be laying folks off in Decatur in June. This is truly bad news. The layoffs in Milwaukee probably isn't that big of a deal for Cat, but layoffs in Decatur, their high profit entity, is especially troubling. I don't think we'll see the stock drop much below $85 as the weakness is currently priced in but I'm now not sure we'll see much of a rebound this year. Hopefully I'm wrong but bad news in Decatur is very bad news for Cat. Stay tuned.
Layoffs of Temp Employees, though not good news for them, is the reason the hiring philosophy has existed since divisions like BCP started it. Many times over the past 20 years this group has been the ones effected by slowdowns as well as upturns. Most of the time these reductions don't even make the news. Cat calls the Temp agency, then they (Temp management) inform their employees who are effected. Business is only a worry for me as a shareholder when actual employees of Cat are involved.
The indefinite layoffs (460) in Decatur starting in early June are Cat supplemental employees (S.E..s) and are not hired through a temp service. They are hired by Caterpillar. Since late November there has been various rolling layoffs (by department/product line/ shift) of regular full time employees up until this past week. Another round of longer term layoffs started this week. Not that the details matter but just focusing in a bit on that topic.
ha. yes they are hiring. and rich will scratch his head and say....how come wealthy people have to pay "all the taxes" in this country. Usually the people with money are the only ones able to pay taxes in my experience. Laid off employees have very little income to tax....pretty much laid off = zero income (dripping sarcasm)
Like tooth said 2 years ago, buy gold, not miners. The days of finding minerals by taking a shovel out into the back yard are over. Can't even profit at today's high commodity prices, industry is doomed. Rich is still calling for 240 in 20 months though, but never fear, he will erase the sheeps minds just like the republicans who blame Obama for the 2008 market crash. Rewriting history is easy when dealing with idiots.