8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Jan 25, 2017)

Filed January 25, 2017For Securities:CAT

Summary

Caterpillar Inc. (CAT) filed an 8-K on January 25, 2017, to provide supplemental information on its rolling three-month retail sales statistics for machines and power systems, ending December 2016. This filing, presented under Regulation FD disclosure, aims to offer investors a clearer view of business trends, acknowledging the time lag between Caterpillar's sales to dealers and dealers' sales to end-users. The data is based on unaudited reports from independent dealers and should be considered an approximate indication of trends rather than a substitute for audited financial statements. The retail sales data for the three-month period ending December 2016 indicated a continued decline in overall machine retail sales globally (-12%), primarily driven by significant downturns in EAME (-21%) and Latin America (-34%), partially offset by strength in Asia/Pacific (+19%). Both the Construction Industries and Resource Industries segments mirrored this global trend, experiencing notable decreases in retail sales, again with Asia/Pacific showing positive growth. The Energy & Transportation segment also saw a widespread decline across its key industries, with Power Generation, Industrial, Transportation, and Oil & Gas sectors all reporting substantial year-over-year decreases.

Key Highlights

  • 1Caterpillar is providing rolling 3-month retail sales statistics for machines and power systems, ending December 2016, to offer insights into end-user demand.
  • 2Global retail sales of machines declined by 12% for the three months ended December 2016 compared to the prior year.
  • 3Asia/Pacific region showed a significant rebound in machine retail sales, up 19% for the period.
  • 4EAME and Latin America regions experienced substantial declines in machine retail sales, down 21% and 34% respectively.
  • 5Both Construction Industries and Resource Industries segments reported global retail sales declines for machines.
  • 6The Energy & Transportation segment's total retail sales declined by 22% for the period.
  • 7The provided data is based on unaudited dealer reports and is intended to indicate trends, not to substitute for audited financial statements.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide supplemental information on Caterpillar's rolling three-month retail sales statistics for machines and power systems. This data is intended to give investors a better understanding of end-user demand trends, especially given the time lag between Caterpillar's sales to dealers and dealers' sales to customers.

The retail sales data is based on unaudited reports from independent dealers and is considered an approximate indication of trends, direction, and magnitude. It is not intended to be a substitute for Caterpillar's audited financial statements and may not be entirely accurate or complete due to its reliance on third-party reporting.

For the three months ended December 2016, the Asia/Pacific region showed the strongest performance with a 19% increase in retail sales of machines. Conversely, EAME and Latin America experienced the most significant declines, down 21% and 34% respectively.

The Energy & Transportation segment experienced a considerable decline in retail sales across all reported industries. For the three-month period ending December 2016, total retail sales for this segment were down 22% year-over-year, with significant decreases noted in Power Generation, Industrial, Transportation, and Oil & Gas sectors.