Earning News Monday

Companies seeing 2009 as the most challenge year in their history, and the economic outlook is uncertain. Companies slashing their forecast, tightening their investment, reducing cost, and suspending expansions, aiming a bleak economy in the future. No one knows when will be the bottom, and there is no optimistic and confidence.

Walgreen 1Q profit falls 10 percent on store costs
Drugstore operator Walgreen Co. said Monday its profit fell 10 percent in its fiscal first quarter, short of Wall Street expectations, because of costs opening more than 200 new stores. The company said it plans to slow the opening of new stores to save $500 million in response to the recession. Bleak December spurs Manpower to withdraw profit forecast
Staffing services company Manpower Inc withdrew its fourth-quarter profit forecast on Monday, saying demand for temporary workers had been light in December as a spreading global recession prompted U.S. industrial firms to idle plants to cut costs.

While businesses across all sectors of the economy are laying off workers to cope with the recession, others are trying to cut costs without firing as many people. Detroit's troubled automakers General Motors Corp, Chrysler and Ford are extending their holiday plant shutdowns longer than usual. Package-delivery company FedEx Corp last week said it would impose a 5 percent pay cut on most salaried workers and suspend its contributions to employee retirement accounts.

Caterpillar scales back executive pay in 2009
Caterpillar plans to cut 2009 compensation for executives by up to 50 percent amid downturn. The world's largest maker of mining and construction equipment also said it will reduce compensation for senior managers by 5 percent to 35 percent in 2009. Other management and support staff will see a reduction of up to 15 percent.

The company said the cuts reflect planned reductions in its incentive program and equity-based compensation. It has instituted a hiring freeze and plans to suspend merit pay increases for managers and support employees. Caterpillar also said it was offering incentives to U.S.-based management and support employees to leave the company voluntarily. Eligible employees have until Jan. 12, 2009, to join the program. It will continue to implement cost-saving measures, including temporary factory shutdowns and more layoffs, as needed.

From Calculated Risk: NY Times: More Part Time Workers