Belfast Telegraph

Caterpillar facing hard year after revenue dip

By Staff Reporter

The parent company of Caterpillar NI warned the firm faced another grim year after reporting a 7% slump in revenues.

It has already announced around 150 job cuts for its Northern Ireland operations, where it owns the former FG Wilson generator maker factory.

Drastic cuts across the US equipment giant's global operations have been made in response to slower growth in markets including China and Brazil, as well as falling commodity prices.

Yesterday, Caterpillar reported revenues of $2.67bn (£1.86bn) for 2015 - a decrease of $212m (£147m), or 7%, when compared with 2014.

Profit after tax was $460m (£320m) - a $75m (£52m), or 14%, decrease from 2014.

And the company's results for the last three months of 2015 showed a fall of 8% in sales to $648m (£451m)

Fourth-quarter 2015 profit after tax was $114m (£79m) - a $6m (£4m), or 6%, increase from the fourth quarter of 2014.

Results filed at Companies House last September showed that Caterpillar NI suffered an 85% slump in profits to £3.8m during 2014.

But managing director Robert Kennedy said it was still "strongly committed" to the province.

Speculation last year suggested the firm could close its site in Springvale, west Belfast, but yesterday's results statement made no mention of site closures.

Chief executive Doug Oberhelman said: "Cost management, restructuring actions and operational execution are helping the company while sales and revenues remain under pressure from weak commodity prices and slowing economic growth in developing countries."

In September, the firm said it would be cutting around 10,000 jobs across its global operations, which employ around 110,000.

It has around 1,800 people in Northern Ireland at four locations including Larne, Monkstown and Springvale.

Belfast Telegraph