UPDATE 1-Caterpillar says cutting contract workforce

(Adds details on contract workers)

SAN FRANCISCO Dec 5 (Reuters) - Caterpillar Inc (CAT.N) said on Friday it has moved to again reduce the number of contract or nonstaff workers it uses, as the heavy machinery maker takes steps to control costs.

Caterpillar did not say how deep the cuts would be, but the reductions will not affect the company's regular employees. Contract workers are hired through outside agencies.

Caterpillar, a component of the Dow Jones Industrial Average, is the world's largest maker of heavy construction and mining equipment. It employs around 112,000 people, excluding contract workers.

The company is also reducing costs in other ways, including reduced travel and external meetings and events.

"Thus far, the vast majority of workforce reductions have occurred as Caterpillar has managed its flexible workforce made up of outside contract and agency personnel," company spokesperson Jim Dugan said in an email statement.

"Historically, the overall percentage of our workforce made up of agency or contract workers increases or decreases based on business needs."

The financial crisis and sharp declines in commodity prices are hurting the company's customers in the mining, energy and construction industries.

In October, the company posted a 6.4 percent decline in its third-quarter profit. In the same month, Caterpillar laid off an unspecified number of workers in the United States, England and France who work at facilities that make heavy machines or diesel engines for the residential construction or on-highway truck markets.

Shares of Peoria, Illinois-based Caterpillar closed at $38.26, up 74 cents, or 2 percent. (Reporting by Gabriel Madway; Editing by Bernard Orr, Gary Hill)