Summary
Caterpillar Inc. (CAT) filed an 8-K on March 18, 2010, to provide supplemental information on dealer statistics for its Machinery and Engines segments for the three months ending February 2010. This report is furnished under Regulation FD and offers insight into retail sales trends based on unaudited dealer reports, acknowledging time lags between Caterpillar's sales to dealers and end-user deliveries. The information is presented in constant dollars and is not subject to Caterpillar's internal controls over financial reporting. Key takeaways from the data indicate a continued global slowdown in retail sales for both machinery and engines. Machinery sales showed a 20% decrease worldwide in the three months ending February 2010 compared to the prior year, with significant declines in North America (30%) and EAME (22%). Similarly, total engine sales experienced a substantial 33% decline for the same period. While the pace of decline in some regions and segments showed slight sequential improvement from January 2010, the overall trend remained negative, suggesting persistent weakness in the industries served by Caterpillar.
Key Highlights
- 1Supplemental data on retail sales for Machinery and Engines lines of business, based on unaudited dealer reports.
- 2Machinery retail sales globally declined 20% for the 3-month rolling period ending February 2010 compared to the prior year.
- 3North America experienced a significant 30% decline in machinery retail sales for the period.
- 4EAME (Europe, Africa and Middle East) saw a 22% decrease in machinery retail sales.
- 5Total engine sales (Reciprocating & Turbine) declined by 33% for the 3-month rolling period ending February 2010.
- 6The data highlights ongoing global weakness in demand across key markets for Caterpillar's products.
- 7The report emphasizes that this data is supplementary and not subject to internal financial controls.