8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Dec 20, 2016)

Filed December 20, 2016For Securities:CAT

Summary

Caterpillar Inc. filed an 8-K on December 20, 2016, to provide supplemental information on its retail sales statistics for November 2016. This report focuses on end-user sales of machines and power systems, offering insights into regional and industry-specific trends. While the data is unaudited and voluntarily provided by dealers, it aims to give investors a clearer picture of business activity and industry demand, bridging the gap between Caterpillar's sales to dealers and dealer sales to end customers. The data for the three-month rolling period ending November 2016 indicates a continued decline in global retail sales for machines, down 17% year-over-year. The Energy & Transportation segment also saw a significant decrease in retail sales, down 25% for the same period. Performance varied by region and industry, with Asia/Pacific showing resilience in Construction Industries machine sales, while other regions and segments experienced considerable contraction.

Key Highlights

  • 1Global retail sales of Caterpillar machines declined by 17% for the three-month rolling period ended November 2016, compared to the prior year.
  • 2Construction Industries machine sales globally decreased by 15% in the same three-month period.
  • 3Resource Industries machine sales experienced a steeper decline of 24% globally for the three-month period ended November 2016.
  • 4The Energy & Transportation segment saw a total retail sales decline of 25% for the three-month rolling period ended November 2016.
  • 5Asia/Pacific region showed a positive trend for Construction Industries machine retail sales, up 11% for the period ended November 2016.
  • 6The EAME region experienced significant downturns across both Construction Industries (down 24%) and Resource Industries (down 30%) machine sales.
  • 7North America continues to show weakness, with Construction Industries machine sales down 17% and Resource Industries down 28% for the period.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide supplemental, unaudited information on Caterpillar's retail sales statistics for machines and power systems to end users and OEMs. This data is intended to help investors understand trends in Caterpillar's business and the industries it serves, given the time lag between Caterpillar's sales to dealers and dealer sales to end users.

Investors should interpret this data as an approximate indication of trends, direction, and magnitude of retail sales. The information is based on unaudited reports from dealers and is not a substitute for Caterpillar's audited financial statements. It is intended to provide a forward-looking perspective on demand, but actual financial results may differ due to various factors.

For the three-month rolling period ended November 2016, Asia/Pacific showed positive growth (up 11%) in Construction Industries machine sales, while EAME, Latin America, and North America all reported significant declines across machine segments. Globally, total machine retail sales were down 17%.

The Energy & Transportation segment is experiencing a notable downturn. For the three-month rolling period ended November 2016, total retail sales for this segment were down 25% year-over-year, with declines observed across key areas such as Power Generation, Industrial, Transportation, and Oil & Gas.