Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/662812
intended to give the company greater control over design, and shift manufacturing from Mexico back to the states to a plant in Victoria, Texas. "We have not yet started truck production in Victoria, and this decision allows us to exit this business before the transition oc- curs," Younessi remarked. Cat has undertaken other drastic cost cutting mea- sures in the recent past, including consolidating the mining divisions with Electric and Marine Power, laying off 5,000 employees, and closing several facilities. Cat estimates that these decisions will reduce operating costs by roughly $1.5 billion over the next few years. April 2016 | EquipmentWorld.com 12 reporter | by Equipment World staff (continued from page 11) J ohn Deere saw sales decline and a sharp drop in profi ts for the fi rst quarter, and in response, the company has adjusted its outlook downward for the full fi scal year. Deere reported Q1 sales of $5.5 billion, down 13 percent from the same period last year, and profi ts fell 40 percent to $254.4 million. Construction & Forestry division equipment sales fell 23 percent, and profi ts fell 52 percent to $70 million. For fi s- cal year 2016, Deere expects weak demand from the energy sector to continue stunting construction equipment sales. In light of those expectations, Deere now forecasts sales to fall 10 percent. Deere's previous 2016 forecast called for a sales reduction of 7 percent. V olvo Construction Equipment has named Alan Berger senior vice president of technology. Berger replaces Anders P. Larsson, who at the start of this year became Volvo CE's president of Chinese investment and its head of the Lingong Integration Offi ce. Berger has been with Volvo CE since 2007, and prior to being named to his new posi- tion, he served as vice president of the company's product platforms organization. Volvo names Berger VP of technology D oosan says it will begin selling shares of Bobcat on the South Korean Stock Market later this year as part of an initial public offering (IPO). According to a report from Reuters, the IPO could value Doosan Bobcat, the Doosan Infracore subsidiary which controls the Bobcat Company, at more than $2 billion. Reuters says the "move comes as Doosan Bobcat seeks to tap into growth in the North American housing market." Doosan taking Bobcat public on South Korean stock exchange later this year John Deere sales continue to plummet: profi ts fall by 40% in Q1