Sunday, September 27, 2015

Almost like a chapter from Atlas Shrugged

In 2009, Obama used Caterpillar as an example to launch his sales pitch for stimulus.

Now six years later, Cat still lacks traction in the progressive USA and world economies.

The company announced yet another major restructuring last week:
This year is the company’s third consecutive down year for sales and revenues, and 2016 would mark the first time in Caterpillar’s 90-year history that sales and revenues have decreased four years in a row. 
“Our strategy is to deliver superior total shareholder returns through the business cycle, and growth is a key element of that strategy. However, several of the key industries we serve – including mining, oil and gas, construction and rail – have a long history of substantial cyclicality. While they are the right businesses to be in for the long term, we have to manage through what can be considerable and sometimes prolonged downturns,” added Oberhelman.  
Today’s announcement is in addition to significant actions already taken. Since 2013, Caterpillar has closed or announced plans to close or consolidate more than 20 facilities, impacting 8 million square feet of manufacturing space. The company has also reduced its total workforce by more than 31,000 since mid-2012.
Ugly stuff here, despite the company's best possible spin on things.

Building for a stronger future, it says. Sounds more like the Cat's bracing for a long and deep economic downturn that's already well underway.

The whitewash continues to fade on the modern Potemkin economy.

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