CHICAGO (Reuters) – Caterpillar Inc (N:) said on Monday it has laid off 120 temporary workers at a plant in Texas following its decision to reduce production.
The layoffs, which took place at the hydraulic excavator facility in Victoria on Nov. 1, were confirmed to Reuters by a company spokeswoman. The facility had about 820 employees.
Kate Kenny, Caterpillar’s spokeswoman, attributed the decision to “market conditions”.
Caterpillar shares were last trading up 1.3% at $146.35 in afternoon trade.
In October, the world’s largest heavy equipment maker said it was taking steps to cut production after sales fell across all product segments and in most regions in the latest quarter.
Sales in Asia-Pacific, its third biggest market, fell 13% as Caterpillar faced falling demand in China and competition from cut-price domestic rivals, while revenue in its main developed world market in North America fell almost 3%.
The Illinois-based industrial bellwether said trade tensions had made its customers wary of committing to large capital expenditures, hitting quarterly profits and forcing a cut in its full-year profit outlook. It expects the uncertainty to result in lower sales this year.
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