Summary
This Form 8-K filing by Caterpillar Inc. (CAT) on January 27, 2016, primarily provides supplemental information on retail sales statistics for the three-month rolling period ending December 2015. The data, based on unaudited reports from independent dealers and not subject to internal financial controls, offers an indication of sales trends for machines and power systems to end users and OEMs. Investors should note that this information is intended to convey approximate trends and is not a substitute for audited financial statements. The key takeaway for investors is the continued challenging sales environment reflected in these statistics. Across most segments and regions, retail sales were down year-over-year. Notably, the "World" total machine sales were down 16% for the period ending December 2015. The Resource Industries segment showed significant declines, down 38% globally, likely reflecting weakness in mining and commodity markets. The Construction Industries segment also experienced a global decline of 8%, with notable weakness in Latin America and Asia/Pacific. The Energy & Transportation segment also saw substantial decreases, particularly in the Transportation and Oil & Gas sub-sectors.
Key Highlights
- 1Caterpillar is reporting supplemental, unaudited retail sales data for machines and power systems, based on dealer reports.
- 2The data covers the three-month rolling period ending December 2015, compared to the same period in the prior year.
- 3Global retail sales of Total Machines were down 16% for the period ending December 2015.
- 4The Resource Industries segment experienced a significant decline of 38% in global retail machine sales.
- 5Construction Industries saw a global retail machine sales decrease of 8%.
- 6The Energy & Transportation segment reported a total retail sales decline of 32%.
- 7Retail sales across all major geographic regions (Asia/Pacific, EAME, Latin America, North America) for Total Machines showed year-over-year decreases.