8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Mar 20, 2013)

Filed March 20, 2013For Securities:CAT

Summary

This Form 8-K filing by Caterpillar Inc. (CAT) on March 20, 2013, provides supplemental dealer statistics for the three-month rolling periods ending February 2013, January 2013, and December 2012. The report details retail sales of machines and power systems by geographic region and end-use sector, comparing current periods to the prior year. This information, based on unaudited dealer reports, is intended to offer investors a better understanding of Caterpillar's business and the industries it serves, acknowledging the time lag between Caterpillar's sales to dealers and end-user deliveries. Key insights indicate a challenging sales environment, with significant year-over-year declines in machine retail sales in Asia/Pacific and North America for the most recent three-month period. Power systems also showed weakness, particularly in the Industrial sector. However, some regions like Latin America showed modest growth, and the Transportation sector for power systems experienced a notable increase in February 2013. The filing also provides updated year-end distribution data for 2011 and 2012, highlighting Mining and Heavy Construction as the largest end-uses for machinery, and Petroleum and Electric Power for power systems.

Key Highlights

  • 1Machine retail sales showed a significant year-over-year decrease of 13% globally for the 3-month period ending February 2013, compared to the prior year.
  • 2Asia/Pacific and North America experienced substantial declines in machine retail sales, down 26% and 12% respectively for the 3-month period ending February 2013.
  • 3Latin America was a bright spot, reporting increases in machine retail sales for all three disclosed 3-month rolling periods.
  • 4Power systems retail sales globally decreased by 7% for the 3-month period ending February 2013, with the Industrial sector seeing a sharp decline of 25%.
  • 5The Transportation sector for power systems demonstrated positive momentum, with a 15% increase in retail sales for the 3-month period ending February 2013.
  • 6Mining and Heavy Construction remain the largest end-use segments for machinery distribution, representing 35% and 15% of sales in 2012, respectively.
  • 7Acquisitions (Bucyrus and MWM) are being integrated into retail statistics, with their full impact on annual data expected in 2014, allowing for clearer year-over-year comparisons.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with supplemental, unaudited dealer statistics on retail sales of Caterpillar's machines and power systems. This information helps investors better understand the company's business and the demand trends in the industries it serves, especially given the time lag between sales to dealers and deliveries to end users.

The data suggests a generally challenging global economic environment impacting Caterpillar's business during the reported periods. Significant year-over-year declines in machine retail sales, particularly in key regions like Asia/Pacific and North America, point to weakened demand. While some areas show resilience or growth, the overall trend indicates economic headwinds.

Caterpillar is incorporating sales from recent acquisitions, such as Bucyrus and MWM, into its retail statistics. However, the company states that full year-over-year comparisons including these acquisitions will be available starting in 2014, allowing for a more comprehensive view of organic performance trends in the interim.

The most significant declines were observed in machine retail sales in Asia/Pacific (down 26%) and North America (down 12%) for the 3-month period ending February 2013. For power systems, the Industrial sector saw a sharp decline (down 25%). Conversely, Latin America showed consistent growth in machine sales, and the Transportation sector for power systems experienced a notable increase in February 2013.