In January, Caterpillar laid off 22,000 employees. CEO Jim Owens said he would rehire many of those employees back once he received stimulus money, but then recanted. It even prompted Obama to speak at a manufacturing plant at Caterpillar.
Caterpillar CAT reported a first-quarter loss of $0.19 per share April 21; its first quarterly loss since 1992. The results highlight the challenges the company continues to face amid the current economic downturn. Redundancy costs of $558 million tied to head-count reductions accounted for a considerable amount of Cat's profit shortfall in the quarter. However, substantially lower sales volumes and a highly leveraged operating structure also contributed to the loss.
So how is the stimulus plan working Obama?