8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Sep 21, 2017)

Filed September 21, 2017For Securities:CAT

Summary

Caterpillar Inc. (CAT) filed an 8-K on September 21, 2017, to furnish supplemental information regarding retail sales of machines and power systems to end users and OEMs. This data, based on unaudited reports from independent dealers, is provided to offer insight into business trends, particularly given the lag between Caterpillar's sales to dealers and dealers' sales to end users. The report presents rolling 3-month retail sales statistics, ending in August 2017, by geographic region for its Construction Industries and Resource Industries segments, and by major end use for its Energy & Transportation segment. The supplemental information indicates a mixed but generally positive trend in retail sales. Globally, total machine retail sales showed an upward trend, driven significantly by strong performance in Asia/Pacific and Latin America for Construction Industries, and a notable recovery in Asia/Pacific and a rebound in EAME for Resource Industries. However, North America and EAME experienced some softening in total machine sales, with specific segments like Resource Industries showing declines in Latin America and North America. The Energy & Transportation segment exhibited varied performance, with Industrial sales showing robust growth, while Power Generation, Transportation, and Oil & Gas saw declines.

Key Highlights

  • 1Caterpillar is providing supplemental data on end-user retail sales to enhance understanding of business trends, acknowledging the lag between dealer and end-user sales.
  • 2Global retail sales of total machines showed a positive trend, increasing by 11% for the three months ended August 2017 compared to the prior year.
  • 3Construction Industries segment experienced strong global growth (up 12% for the 3 months ended August 2017), significantly boosted by robust retail sales in Asia/Pacific (up 61%) and Latin America (up 24%).
  • 4Resource Industries segment showed a more volatile but improving trend, with global sales up 5% for the 3 months ended August 2017, driven by a substantial increase in EAME (up 53%) despite declines in Latin America and North America.
  • 5Energy & Transportation segment saw mixed results: Industrial sales surged by 25%, but Power Generation, Transportation, and Oil & Gas sectors experienced retail sales declines.
  • 6The data is unaudited and based on voluntary dealer reports, intended to indicate approximate trends rather than provide financial predictions.
  • 7Specific geographic regions and industry segments showed divergent performance, highlighting regional economic variations and industry-specific demands.

Frequently Asked Questions

This 8-K filing is to furnish supplemental information regarding Caterpillar's retail sales of machines and power systems to end users and OEMs. Caterpillar provides this data because there is a time delay between when Caterpillar sells to its dealers and when dealers sell to the end users, and this information helps investors better understand the company's business trends.

The data presented is based on unaudited reports voluntarily provided by Caterpillar's independent dealers and is not subject to Caterpillar's internal controls over financial reporting. Therefore, the data may not be entirely accurate or complete and is intended solely to provide an approximate indication of trends, direction, and magnitude, not as a substitute for audited financial statements.

The Construction Industries segment is showing strong global growth, with a 12% increase in retail sales for the three months ended August 2017. Within this segment, Asia/Pacific and Latin America are particularly strong. The Industrial sub-sector within Energy & Transportation also showed significant growth at 25%.

Yes, the Resource Industries segment shows some regional weakness, with declines reported in Latin America and North America. The Energy & Transportation segment also saw declines in Power Generation, Transportation, and Oil & Gas sectors, despite overall growth in the Industrial sub-sector.