8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Mar 13, 2018)

Filed March 13, 2018For Securities:CAT

Summary

This 8-K filing from Caterpillar Inc. (CAT), dated March 13, 2018, provides supplemental information on retail sales trends for machines and power systems. The report focuses on unaudited data voluntarily provided by independent dealers and OEMs, offering insights into end-user demand. While not a substitute for audited financial statements, this information aims to help investors understand business dynamics, particularly given the lag between Caterpillar's sales to dealers and dealers' sales to end-users. The supplemental data highlights strong year-over-year retail sales growth across most geographic regions and key industries for the rolling three-month periods ending in February 2018. This suggests a positive momentum in demand for Caterpillar's products in the initial months of 2018, reflecting a potentially improving global economic environment for the sectors Caterpillar serves.

Key Highlights

  • 1Caterpillar is providing supplemental data on retail sales of machines and power systems to end-users, based on dealer and OEM reports.
  • 2The data is unaudited and intended to provide an approximate indication of trends, not a substitute for financial statements.
  • 3For the 3-month rolling period ended February 2018, total machine retail sales globally increased by 33% year-over-year.
  • 4Significant year-over-year retail sales growth was observed across all major geographic regions for total machines, with Asia/Pacific showing the strongest increase at 41%.
  • 5The Resource Industries segment reported robust global retail sales growth of 60% for the period ended February 2018, indicating strong demand in mining and related sectors.
  • 6The Construction Industries segment also showed positive global retail sales growth of 27% for the period ended February 2018.
  • 7Energy & Transportation segment retail sales saw a 21% global increase for the period ended February 2018, driven by strong performance in the Oil & Gas sector.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide supplemental, unaudited information about Caterpillar's retail sales of machines and power systems to end-users. This data, voluntarily reported by dealers and OEMs, is intended to give investors a better understanding of underlying business trends and demand, especially given the time lag between Caterpillar's sales to its dealers and the dealers' subsequent sales to end-users.

The filing explicitly states that the retail sales data is primarily based on unaudited reports voluntarily provided by independent dealers and OEMs and is not subject to Caterpillar's internal controls over financial reporting. Therefore, the data may not be entirely accurate or complete. Caterpillar presents this information solely to convey an approximate indication of trends and direction, and it should not be considered a substitute for the company's audited financial statements.

The data for the rolling three-month periods ending in February 2018 indicates a strong positive trend in retail sales across most segments and geographies. Total machine retail sales globally were up 33% year-over-year, with significant growth in all regions. The Resource Industries and Energy & Transportation segments, in particular, showed substantial increases, suggesting a healthy pickup in demand for Caterpillar's products as of early 2018.

As of the rolling three-month period ended February 2018, the Resource Industries segment demonstrated the most significant growth with global retail sales up 60% year-over-year, likely driven by mining and related activities. The Energy & Transportation segment also showed robust growth of 21%, with the Oil & Gas sector being a key contributor. The Construction Industries segment also reported positive growth of 27% globally.