Updated 15:40  Peoria, Illinois, USA (GenevaLunch) – Caterpillar, whose European government affairs office, with financial and marketing services, is in Geneva, announced Monday that it will cut 20,000 jobs in the expectation that 2009 will be its worst year since world war two.

Its 2008 results are relatively positive: $51.32 billion in sales and revenue, up 14 percent from 2007. Profit per share was $5.66, up 5 percent. But the company says it asked dealers to align inventory with “declining volume” in Q4 and the result was “significant order cancellations, particularly in December,” CEO Jim Owens said.

Reuters reports that its main competitors are also facing serious falls in fourth quarter 2008 results, confirming that the recession has reached the earth-moving and mining business around the world.

The company is taking a number of cost-cutting measures, including reducing executive compensation by up to 50% and senior management compensation by 5 to 35%, it said.

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