Caterpillar second-quarter implications

Jul 25, 2013

Caterpillar’s second quarter earnings likely signal a need for patience when it comes to any pronouncements about a new world headquarters. Peoria Public Radio’s Tanya Koonce reports:

Caterpillar yesterday announced a 43% drop in profits for the second quarter of the year compared to the same time last year.

The company is calling it a tough year with more layoffs, furloughs by divisions, temporary factory shutdowns and cost savings measures in store. Caterpillar also reduced its economic outlook for year and will spend less on capital expenditures. From $3.4 billion last year to less than $3 billion this year.

Caterpillar CFO Brad Halverson: "I think the message would be to the community, that we are committed to Peoria. We have a great presence here; a great number of employees here and we're going to continue to study the best way to move forward in Peoria."   

Halverson says they must consider the things that best serve Caterpillar customers in the medium and long term. He says they’ll also have to be smart about some things that can be delayed.