Caterpillar, one of the North’s largest manufacturers, suffered an £80 million slump in sales at its Northern Ireland operations last year, according to its latest financial figures.

Sales at the US-owned company’s Northern Ireland operations, where it employed more than 1,600 people in 2016, fell to just over £455 million compared to £537 million a year earlier according to its annual accounts.

Its facilities in Belfast and Larne design, manufacture and assembly diesel and gas generation sets.

Caterpillar has blamed “ongoing global economic conditions” and “weak demand” for electric power products for the substantial decline in sales at its local operations. The majority of the company’s sales last year was outside of the UK and Europe, previously two of its strongest markets.

Despite the significant decline in sales Caterpillar Northern Ireland registered a pre-tax profit of £10.3 million last year, reversing a £1.7 million loss in 2015.

It attributes the improved profits performance to a £9.13 million “recharge of consulting charges incurred in prior years”.

But the US company also details that its pre-tax profits figure for 2016 was also hit by £858,000 of asset impairment charges because of the consolidation of continuing operations.

One year ago Caterpillar warned that its Northern Ireland operations would be impacted by a major restructuring programme which would result the loss of 250 jobs.

In its latest accounts Caterpillar confirms that it has decided to discontinue manufacturing its wheeled material handler product in the North and that it also plans to consolidate its manufacturing activity into two sites and close its Monkstown site.

The American company has also sounded a warning in its annual report for 2016 about the “continued uncertainty” following the Brexit vote in the UK. It said it has a team in place assessing its potential impact including “worst case scenarios” to the business which it highlights as “no tariff free access to the single market”.