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.