Today, a major construction equipment maker reported a loss of $67 million compared to a $347 million net income from the second quarter of 2008. The company reported a drop in sales of 32 percent. As of the second quarter, it had cut 7 percent of its workforce and expects to cut a total of 10 percent to 12 percent of workers by the end of the year, according to MarketWatch.
Yesterday, the world's biggest maker of mining and construction equipment also reported a second quarter loss, with earnings per share for the quarter falling 59 percent from a year ago. However, the company beat expectations and raised its earnings outlook for fiscal year 2009, MarketWatch reported.
Many analysts are looking to earnings reports from equipment manufacturers as a bellwether of the global economy. Declining demand for construction, mining and farm equipment due to the financial crisis has hurt manufacturers.
Deere & Company, the world's biggest manufacturer of farm equipment, reports its quarterly earnings on August 19.
