8-KRegulation FD

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Apr 24, 2019)

Filed April 24, 2019For Securities:CAT

Summary

Caterpillar Inc. (CAT) filed an 8-K on April 24, 2019, providing supplemental information on retail sales of machines and power systems. This report offers insights into end-user demand trends, supplementing the company's official financial reporting. The data, based on unaudited dealer reports, covers rolling three-month periods ending in March, February, and January 2019, compared to the prior year. Key trends indicate a mixed global retail sales environment for machines. The 'World' total machines category showed positive growth across the periods, driven by strong performance in North America and Latin America. However, specific segments and regions displayed varied trajectories. Resource Industries saw robust growth globally, particularly in Latin America and North America, while Construction Industries showed more moderate but positive global growth, with North America and Latin America being key contributors. The Energy & Transportation segment, however, experienced declines in Total sales, with notable weakness in the Transportation and Oil & Gas sub-sectors, despite some positive indications in Power Generation and Industrial markets earlier in the period.

Key Highlights

  • 1Global retail sales of total machines showed a positive trend, increasing by 8% for the three-month period ending March 2019 compared to the prior year.
  • 2North America was a strong performer for total machine retail sales, with a 14% increase for the period ending March 2019.
  • 3Resource Industries experienced significant global retail sales growth, up 17% for the period ending March 2019, led by substantial increases in Latin America (+43%) and North America (+19%).
  • 4Construction Industries demonstrated steady global retail sales growth of 6% for the period ending March 2019, with North America showing a 13% increase.
  • 5The Energy & Transportation segment's total retail sales declined by 4% for the period ending March 2019, primarily due to a 12% decrease in Transportation sales and an 8% decrease in Oil & Gas sales.
  • 6Asia/Pacific region showed a mixed performance for machine sales: positive for Total Machines (+6% in March 2019) and Resource Industries (+49% in March 2019), but negative for Construction Industries (-1% in March 2019).
  • 7The disclosed information is based on unaudited dealer reports and is intended to provide an indication of trends, not a substitute for audited financial statements.

Frequently Asked Questions

This 8-K filing is primarily for Regulation FD Disclosure, providing supplemental, unaudited information on Caterpillar's retail sales of machines and power systems to end users and OEMs. It aims to offer a timelier, though less precise, view of business trends compared to official financial statements.

The data presented is based on unaudited reports voluntarily provided by Caterpillar's independent dealers and is not subject to the company's internal controls over financial reporting. Therefore, it may not be accurate or complete and is intended to convey an approximate indication of trends rather than precise financial figures.

For machines, North America and Latin America showed strong retail sales growth across segments. Resource Industries globally, particularly in Latin America, also saw substantial increases. For the Energy & Transportation segment, Power Generation showed the most resilience with positive growth trends earlier in the period.

The primary concern stems from the declining retail sales in the Energy & Transportation segment, specifically within the Transportation and Oil & Gas sectors. Additionally, the mixed performance in the Asia/Pacific region for Construction Industries and the overall decline in EAME for Resource Industries warrant attention.