8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (May 18, 2017)

Filed May 18, 2017For Securities:CAT

Summary

Caterpillar Inc. (CAT) filed an 8-K on May 18, 2017, to provide supplemental information on retail sales of machines and power systems. This data, based on voluntary reports from independent dealers, offers a real-time, albeit unaudited, glimpse into market trends. The company emphasizes that this information is for indicating approximate trends and is not a substitute for audited financial statements. The report details rolling 3-month retail sales figures for machines across different geographic regions and for its Resource Industries and Construction Industries segments. It also presents retail sales for the Energy & Transportation segment by major end-use. This supplemental disclosure aims to provide investors with a better understanding of Caterpillar's business and the industries it serves, especially given the lag between Caterpillar's sales to dealers and dealers' sales to end-users.

Key Highlights

  • 1Caterpillar is providing supplemental, unaudited retail sales data for machines and power systems to give investors insight into current market trends.
  • 2This data is based on voluntary reports from independent dealers and is not subject to internal controls over financial reporting.
  • 3The report covers rolling 3-month retail sales for machines by geographic region (Asia/Pacific, EAME, Latin America, North America) and segment (Resource Industries, Construction Industries).
  • 4For the Energy & Transportation segment, retail sales are broken down by major end-use (Power Gen, Industrial, Transportation, Oil & Gas).
  • 5Retail sales for Total Machines globally showed a 1% increase for the 3-month period ended April 2017 compared to the prior year.
  • 6Construction Industries showed mixed regional performance, with a strong 8% global increase driven by a significant 59% rise in Asia/Pacific, but declines in EAME and North America.
  • 7Resource Industries experienced a notable 19% decline in global retail sales, with significant drops across all major regions.

Frequently Asked Questions

This 8-K filing is to furnish supplemental information regarding Caterpillar's retail sales of machines and power systems. The company provides this data to help investors understand current business and industry trends, especially due to the time lag between Caterpillar's sales to dealers and dealers' sales to end-users.

No, the retail sales data provided in this report is based on unaudited reports voluntarily submitted by Caterpillar's independent dealers. It is not subject to Caterpillar's internal controls over financial reporting and is intended solely to convey an approximate indication of trends, not as a substitute for audited financial statements.

For the rolling 3-month period ended April 2017, global retail sales of total machines showed a slight increase of 1% compared to the same period in the prior year. However, this masks significant regional and segment variations.

The Construction Industries segment showed positive global retail sales growth of 8% for the rolling 3-month period ended April 2017. This growth was largely driven by a substantial 59% increase in Asia/Pacific, although EAME and North America experienced declines.

The Resource Industries segment experienced a significant global decline of 19% in retail sales for the rolling 3-month period ended April 2017. This downturn was widespread, with substantial decreases reported across all major geographic regions.