8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Jun 18, 2010)

Filed June 18, 2010For Securities:CAT

Summary

This Form 8-K filing by Caterpillar Inc. (CAT) provides an update on dealer statistics for its Machinery and Engines segments for the three-month rolling period ending May 2010. The report highlights that retail sales of machines showed a significant rebound in Asia/Pacific, with a 38% increase year-over-year, and a positive 15% increase in North America. However, other regions like EAME and Latin America continued to experience declines. For the Engines segment, while Electric Power and Industrial sectors saw modest year-over-year growth in May, the Marine and Petroleum sectors continued to face significant declines. This supplemental information, based on unaudited dealer reports, offers a glimpse into regional demand trends and the performance of specific business lines, which investors can use to assess the company's operational momentum in the post-recessionary environment.

Key Highlights

  • 1Retail sales of Caterpillar machines in Asia/Pacific increased by 38% for the three-month rolling period ending May 2010, indicating a strong recovery in this key market.
  • 2North America also showed positive momentum for machine sales, with a 15% increase year-over-year for the period.
  • 3The EAME (Europe, Africa, and Middle East) and Latin America regions experienced continued year-over-year declines in machine sales, down 8% and 2% respectively in May.
  • 4The Engines segment's Electric Power business saw a 4% increase in retail sales in May, a positive sign for this sector.
  • 5However, the Marine and Petroleum sectors within the Engines business continued to struggle, with significant year-over-year declines of 27% and 20% respectively in May.
  • 6This information is based on unaudited reports from independent dealers and is presented in constant dollars, providing a view of underlying volume trends.
  • 7Caterpillar emphasizes that these dealer statistics are supplemental and not subject to internal controls over financial reporting, nor does the company undertake to update this information.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with supplemental, unaudited information regarding Caterpillar's dealer statistics for its Machinery and Engines segments. This data helps to understand the trends in retail deliveries to end users, offering a near-real-time view of demand in various global markets and business sectors.

The 'UP' and 'DOWN' percentages represent the year-over-year change in retail sales of machines or engines for the specified marketing region or business sector, calculated over a three-month rolling period and presented in constant dollars. For example, 'UP 38%' in Asia/Pacific for May 2010 means that retail sales in that region were 38% higher in the three months ending May 2010 compared to the same period in the prior year.

Caterpillar provides this information because there can be time delays between when Caterpillar sells to its independent dealers and when those dealers deliver to end users. By reporting dealer statistics, Caterpillar aims to give investors a better understanding of its business and the industries it serves, reflecting actual end-user demand more directly, albeit with the caveat that it's unaudited supplemental data.

No, these dealer statistics are considered supplemental information and are based on unaudited reports from Caterpillar's independent dealers. They are not subject to Caterpillar's internal controls over financial reporting and should not be considered a substitute for the company's audited financial statements or official earnings releases.