Summary
Caterpillar Inc. (CAT) filed an 8-K on September 21, 2016, to provide supplemental information on retail sales of machines and power systems as of August 2016. This data, which is based on unaudited reports from independent dealers and not subject to internal financial controls, offers an indication of market trends and direction. The report highlights that global retail machine sales were down 17% for the three-month rolling period ended August 2016, a continuation of a downward trend observed in the preceding months. Key segments like Resource Industries and Construction Industries showed significant year-over-year declines in retail sales across most geographic regions, with North America and Latin America being particularly weak. The Energy & Transportation segment also experienced a broad decline in retail sales, with all sub-sectors, including Power Generation, Industrial, Transportation, and Oil & Gas, reporting substantial year-over-year decreases. This supplemental disclosure aims to provide investors with a more immediate view of end-user demand, bridging the gap between Caterpillar's sales to dealers and dealer sales to end-users.
Key Highlights
- 1Global retail sales of machines decreased by 17% for the three-month rolling period ended August 2016, compared to the same period last year.
- 2The Resource Industries segment experienced a significant global decline in retail machine sales, down 39% for the period ended August 2016.
- 3The Construction Industries segment also saw a global decrease in retail machine sales, down 9% for the period ended August 2016.
- 4North America showed a substantial year-over-year decline in retail machine sales, down 21% globally for the period ended August 2016.
- 5Latin America faced a severe contraction in retail machine sales, down 35% globally for the period ended August 2016.
- 6The Energy & Transportation segment reported a total retail sales decline of 25% for the period ended August 2016, impacting all major sub-sectors.
- 7The disclosed retail sales data is unaudited, based on dealer reports, and serves as an indicator of trends rather than a prediction of financial performance.