Caterpillar Inc. last week announced plans to selectively align production levels with demand and resource requirements. Caterpillar has already started bringing some laid off employees back to work at various facilities, and based on current demand schedules, the company expects to return other employees to jobs as demand increases in the coming months. Approximately 550 laid off U.S. employees have returned or will return to work before the end of 2010, including support, management and production employees.

The company last week also began notifying approximately 2,500 laid off U.S. employees that they will be separated from the company. The company is offering a separation package for those employees. A breakdown of impacted employees by location will not be provided.

“We are pleased that signs of recovery in the global economy allow us to return a selected group of laid off employees to work,” said Jim Owens, Caterpillar chairman and CEO. “But it’s important to remember that we are not close to the record-breaking demand we experienced from 2004 through 2008.”

Looking forward, Caterpillar will adjust its workforce as production levels and resource requirements change. These actions may vary from business unit to business unit within the company.

Last month, Caterpillar updated its outlook for 2009 and issued a preliminary sales and revenues outlook for 2010. The company expects 2009 sales and revenues of $32 to $33 billion. The 2009 profit outlook range has improved to $1.10 to $1.30 per share compared to the previous range of $0.40 to $1.50 per share. Caterpillar's preliminary outlook for 2010 calls for sales and revenues to be up 10 to 25 percent from the midpoint of the 2009 outlook range.

Caterpillar Inc., Peoria, Ill., is a leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.