(Reuters) – Caterpillar Inc slashed its revenue forecast for 2015 by $1 billion (Â£656 million) & said it could cut up to 10,000 jobs through 2018, amid a downturn in the mining & energy industries.
Shares of the world's biggest construction & mining equipment maker, which has moreover been hit by a slowdown in industrial activity in China, fell as much as 8 percent to a five-year low of $64.65 on Thursday.
The stock moreover pulled down shares of other industrial companies & knocked 31 points off the Dow Jones Industrial Average.
Caterpillar said it expected revenue to fall for the third straight year in 2015, to $48 billion. Revenue is expected to fall a further 5 percent in 2016, the company said.
Caterpillar said it would cut 4,000-5,000 jobs by the end of 2016, most of them in 2015. The company has already reduced its workforce by more than 31,000 since mid-2012.
Caterpillar had 114,233 employees as of Dec. 31, according to Thomson Reuters data.
The company expects to save up to $1.5 billion annually from the restructuring. It expects to incur approximately $2 billion in pretax costs.
The restructuring could impact more than 20 plants around the world across its three large businesses – construction, resources, & energy & transportation, the company said.
Caterpillar is facing "challenging marketplace conditions in key regions & industry sectors – namely in mining & energy," Chief Executive Doug Oberhelman said in a statement.
Caterpillar shares were down 7 percent at $65.21 in morning trading. Shares of mining equipment maker Joy Global Inc & industrial conglomerate General Electric Co moreover fell after the news.
Up to Wednesday's close, Caterpillar shares had fallen 23 percent this year.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Kirti Pandey)