The West End headquarters staff of Caterpillar Financial Services looks set to shrink in the coming months after the leaders of the lender's parent company said they plan to cut $1.5 billion in annual costs, a move that will include the laying off at least 4,000 in the next 14 months as well as the potential closure or consolidation of up to 20 factories.
In a statement Thursday morning, Caterpillar's top executives said several of their customer segments — think mining and energy companies — have cut back on spending, which has forced them to trim their 2015 sales forecast by $1 billion to $48 billion, with 2016 expected to bring more top-line shrinkage. A Bloomberg Intelligence analyst labeled Cat's cost-cutting plan as "basically writing down next year."
A Cat Financial spokesman said details about job cuts in specific divisions such as Cat Financial, which houses hundreds of people in a mid-rise building located on West End Avenue (see here courtesy of Google Maps) are not being disclosed but that "all cost reduction actions will be global in nature and across our sectors."
An Atlanta-based company that helps commercial real estate players raise various types of capital has hired a former MTSU basketball player to lead its new Nashville office.
Patterson Real Estate Advisory Group officials say Terry Hughes recently moved from Indianapolis, where he worked at national development group Milhaus. Before that, he worked at CBRE as an investment properties broker.
“Nashville’s growth is readily apparent today, but it is a market that Patterson has been active in more than five years — always with the idea of establishing a formal presence when then time was right, and more importantly, the person was right,” said Lance Patterson, founder of Patterson. “We believe Nashville is just getting warmed up and we’re very excited to have Terry join our team.”
Five-year-old Patterson has closed more than 100 deals worth more than $2 billion in project value.
The numbers at Caterpillar Financial Services took a turn for the worse in the second quarter. The lending arm of construction equipment giant Caterpillar still posted a profit of $104 million in the three months ended June 30, but that was down 30 percent from a year earlier. Revenues slipped 6 percent to $683 million but new business fell 20 percent as most of the company's big customer groups cut back on spending.
Brentwood-based Churchill Mortgage has doubled its California footprint with the opening of a branch in San Diego. The lender also plans to add another location in Los Angeles County soon. The San Diego office is Churchill’s 25th overall and will be led by Joe Detmer, a former regional sales manager for U.S. Bank Home Mortgage and chairman of the San Diego Community Housing Corp.’s board.
Churchill first set up shop in California last year with an office in Orange. That location now is home to more than 10 people and is recruiting for various roles with an eye to opening a second Los Angeles County branch.
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