Caterpillar Offers Retirement Incentive to Eligible Production Employees
February 11, 2009
Corporate Public Affairs
Corporate Public Affairs
FOR IMMEDIATE RELEASE
PEORIA, IL - Caterpillar Inc. (NYSE: CAT) today announced it is offering a voluntary early retirement incentive package to approximately 2,000 production employees in Illinois Caterpillar facilities (Aurora, Decatur, Joliet, Pontiac and the Peoria-area) as well as in Denver, Colorado; Memphis, Tennessee; and York, Pennsylvania.
“We recognize these are extremely difficult and uncertain times for our employees. In offering this package, our intent is to provide eligible employees the opportunity to retire early as we expect significant declines in all geographic regions in most industries due to difficulties in the global economy,” said Sid Banwart, Caterpillar vice president with responsibility for the Human Services Division.
This company-initiated incentive is being offered in accordance with Caterpillar’s Non-Contributory Pension Plan. Eligibility for this package is based on a combination of age and credited service.
The incentive plan announced today is in addition to other previously announced workforce reductions related to production employees. Consistent with previously announced plans, and depending on business conditions, more voluntary and involuntary workforce reductions may be required as the year unfolds.
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com/
Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "would," "expect," "anticipate," "should" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, (i) adverse change in general economic conditions; (ii) adverse change in the industries Caterpillar serves including construction, infrastructure, mining, energy, marine and electric power generation; (iii) Caterpillar's ability to manage material, including steel, and freight costs; (iv) Caterpillar's ability to generate cash from operations, secure external funding for its operations and manage its liquidity needs; (v) material adverse change in customers' access to liquidity and capital; (vi) currency exchange or interest rates changes; (vii) political stability; (viii) market acceptance of the company's products and services; (ix) significant changes in the competitive environment; (x) epidemic diseases; (xi) severe change in weather conditions negatively impacting operations; (xii) changes in law, regulations and tax rates; and (xiii) other general economic, business and financing conditions and factors described in more detail in the company's Form 10-Q filed with the Securities and Exchange Commission on October 31, 2008. This filing is available on our website at www.cat.com/sec_filings. We do not undertake to update our forward-looking statements.