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.