8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Aug 20, 2009)

Filed August 20, 2009For Securities:CAT

Summary

This 8-K filing from Caterpillar Inc. (CAT), filed on August 20, 2009, provides supplemental data on dealer statistics for its Machinery and Engines segments, based on unaudited reports from independent dealers. The data reflects retail sales for the three-month rolling period ending July 2009, compared to the same period in the prior year. This information is intended to offer investors a clearer understanding of Caterpillar's business and the industries it serves, acknowledging the time lag between Caterpillar's sales to dealers and end-user deliveries. Overall, the report indicates a significant and widespread downturn in retail sales across all major marketing regions for machinery and engines. North America experienced the most severe decline in machinery sales, down 57-59% across the period. The Engines segment also saw substantial drops, particularly in the Truck & Bus sector (down 72-75%), though Marine engines showed a slight increase in July. This data suggests a challenging operating environment reflecting the global economic recession at the time.

Key Highlights

  • 1Caterpillar is providing supplemental, unaudited dealer statistics for retail sales of machinery and engines to help investors understand business trends.
  • 2Machinery sales experienced significant declines across all regions for the three-month rolling period ending July 2009, compared to the prior year.
  • 3North America showed the steepest decline in machinery retail sales, with a 57-59% decrease.
  • 4The EAME (Europe, Africa, and Middle East) region also faced substantial machinery sales reductions, down 46-50%.
  • 5Engines sales, as a whole, declined by 33% in July 2009 compared to the prior year.
  • 6The Truck & Bus engine sector experienced the most severe decline within the Engines segment, with sales down 72-75%.
  • 7Marine engine sales showed a positive trend, increasing by 1% in July 2009, a notable exception to the overall downturn.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with supplemental, unaudited data regarding Caterpillar's dealer statistics for its Machinery and Engines segments. This information aims to offer a more timely perspective on retail sales trends, acknowledging the time lag between Caterpillar's sales to its dealers and the dealers' subsequent sales to end-users.

The declines in retail sales are significant and widespread. For machinery, the 'World' total showed a 43-48% decrease over the rolling three-month periods. Specific regions like North America and EAME experienced particularly sharp drops of over 50%. For engines, the total sales declined by 33% in July 2009, with the Truck & Bus sector being heavily impacted.

The worst-performing segments and regions include North America for machinery sales (down 57-59%) and the Truck & Bus engine sector (down 72-75%). The EAME region also saw severe declines in machinery sales (down 46-50%). The best-performing segment was Marine engines, which showed a slight increase of 1% in July 2009, standing out against the broad downward trend.

No, this information is based on unaudited reports provided by Caterpillar's independent dealers and is not subject to Caterpillar's internal controls over financial reporting. Caterpillar is furnishing this information under Regulation FD.