8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (May 20, 2015)

Filed May 20, 2015For Securities:CAT

Summary

Caterpillar Inc. (CAT) filed an 8-K on May 20, 2015, providing supplemental information on its retail sales statistics for April 2015, compared to the prior year. This filing is intended to give investors a better understanding of business trends, especially given the lag between Caterpillar's sales to dealers and dealers' sales to end-users. The data indicates a broad decline in retail machine sales globally, down 11% for the rolling three-month period ended April 2015. Both Construction Industries and Resource Industries segments experienced significant downturns in retail sales, particularly in Asia/Pacific and Latin America. The Energy & Transportation segment also saw a notable decrease in overall retail sales, driven by weakness in Power Generation and Transportation sectors, though Oil & Gas showed slight improvement.

Key Highlights

  • 1Global retail machine sales were down 11% for the three-month period ended April 2015, indicating a challenging market environment.
  • 2Construction Industries retail sales declined by 12% globally, with significant weakness in Asia/Pacific (-32%) and Latin America (-48%).
  • 3Resource Industries retail sales also contracted by 9% globally, despite a strong increase in Asia/Pacific (+67%), which was offset by declines in EAME (-34%) and Latin America (-39%).
  • 4Energy & Transportation segment experienced an 8% decrease in total retail sales for the period, with Power Generation down 5% and Transportation down 24%.
  • 5North America showed mixed retail sales trends; Construction Industries were up 3%, but Total Machines were down 11% for the rolling three-month period.
  • 6The filing includes revised definitions for Resource Industries data starting January 2015, incorporating specific mining equipment previously excluded.
  • 7The provided retail sales data is unaudited, based on voluntary dealer reports, and intended to indicate trends rather than provide precise financial estimates.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with supplemental, unaudited retail sales statistics for Caterpillar's machines and power systems. This information offers insights into end-user demand trends, which can be helpful given the time lag between Caterpillar's sales to dealers and the dealers' subsequent sales to end-users.

Globally, retail sales of machines were down 11% for the rolling three-month period ended April 2015 compared to the same period in the prior year. This overall decline was reflected across major segments like Construction Industries (down 12%) and Resource Industries (down 9%).

Latin America is experiencing very significant declines across both Construction Industries (-48%) and Resource Industries (-39%). Asia/Pacific also shows substantial weakness in Construction Industries (-32%). Within Energy & Transportation, the Transportation sector saw a notable decrease of 24%.

No, the data presented in this filing is based on unaudited reports voluntarily provided by Caterpillar's independent dealers. It is intended to convey an approximate indication of trends, direction, and magnitude of retail sales, and is not a substitute for Caterpillar's audited financial statements filed with the SEC.