RERMAG

Caterpillar to Eliminate 900 Jobs

Peoria, Ill.-based Caterpillar will eliminate more than 900 jobs by closing an overseas plant and offering early retirement to some domestic workers. The company plans to cut 520 jobs through the previously announced closure of its Perkins Engines manufacturing plant in Shrewsbury, U.K. Production from that plant will be shifted to other engine-making facilities.

In the United States, Caterpillar plans to cut 420 jobs by June 30 through early retirement incentives in some of its divisions. Officials said layoffs are possible if enough employees do not choose early retirement.

“These moves are important steps in our drive to reduce costs, improve efficiencies and leverage global synergies to better serve our customers while delivering strong results to investors,” said Glen Barton, chairman and CEO.

The company said with the closure and early retirements, it will take a pre-tax charge of about $55 million. Caterpillar said it still expects 2001 profits to be down 10 to 15 percent from 2000 as previously announced.

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