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Thursday, October 25, 2012

Economy Recovering? Only in Fantasyland! Faced with weakening revenue, three of the largest US companies warn of job cuts

BOSTON: Faced with weakening revenue, three of the largest US companies warned that they would cut jobs to protect profits.
Dow Chemical Co said it would cut 2,400 jobs, about 5% of its staff, and close 20 manufacturing facilities in a bid to save US$500mil a year in operating costs. The company said it would also cut back capital spending and investments to save another US$500mil on top of that.
DuPont Co said it planned to lay off about 1,500 workers roughly 2% of its global headcount as the chemical company grapples with weakening demand from the construction and renewable energy sectors.
United Technologies Corp did not specify the magnitude of the cuts it was considering but said it would raise its full-year, restructuring budget by 20% to US$600mil as demand for its military equipment declines.
Both DuPont and United Technologies, components of the widely watched Dow Jones industrial average, reported weaker-than-expected sales for the third quarter, following an overall trend. Of the companies in the broad Standard & Poor's 500 index that have reported results, 63% came in below analysts' revenue forecasts, well above the 38% sales-miss rate in a typical earnings season, according to Thomson Reuters I/B/E/S.

Continue Reading: US firms warn of job cuts

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