---------- Forwarded message ---------- Date: Tue, 22 Dec 1998 07:40:33 -0500 From: Doug Hunt <[EMAIL PROTECTED]> To: [EMAIL PROTECTED] Subject: Case Corp. Job Cuts Grow to 3,400 >From InfoBeat - http://www.infobeat.com . . . . > 08:03 PM ET 12/21/98 > > Case Corp. Job Cuts Grow to 3,400 > > Case Corp. Job Cuts Grow to 3,400 > RACINE, Wis. (AP) _ A worsening world market for farm equipment > prompted Case Corp. to slash 2,400 additional jobs Monday and > dramatically reduce its earnings forecast for 1998. > In September, Case said it would cut 1,000 jobs because of the > decline in the global agricultural equipment market. > The slump, however, has become worse than expected in Russia and > other emerging markets, Case said, forcing the Racine-based farm > products manufacturer to take additional action. > ``Given the recent, precipitous decline in the agriculture > equipment market worldwide, we now expect the global market to be > down by as much as 10 percent this year and we anticipate an > additional deterioration of 10 percent in 1999,'' said Jean-Pierre > Rosso, Case chairman and chief executive officer. > The 3,400 job cuts now planned through the end of 1999 amount to > nearly a fifth of the company's worldwide work force of 18,000 and > include some temporary workers and contract employees. > Factories in Hugo, Minn., and Hamilton, Ontario, will shut down > by the end of next year, said Case spokesman William Masterson. > ``Employees were very aware of what's going on with the market > today,'' Masterson said. ``They realize we have to take some steps > to continue to be profitable in this kind of environment.'' > Earnings in 1998, previously forecast to decline by 25 percent, > are expected to drop by almost 60 percent from last year's $396 > million, Case said. Earnings in 1999 are expected to decline as > well. > The company said the reductions should save $95 million to $100 > million a year, with two-thirds of the savings coming by 1999. > The company plans to take a restructuring charge against > earnings of $130 million to $135 million in the soon-to-end fourth > quarter of this year because of the plant closings and other > cutbacks. Additional restructuring charges will be taken as needed > in 1999. > Case also is taking a one-time charge of $43 million in the > fourth quarter for the write-down of assets and expenses from the > plant shutdowns and other actions related to the slumping market. ** NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. ** Doug Hunt Aspiring stone in the shoe of the dominant culture . . . -- When I give food to the poor, they call me a saint, When I ask why the poor have no food, they call me a communist. -- Dom Helder Camara, Archbishop of Recife and Olinda, Brazil
