Summary
Caterpillar Inc. (CAT) filed an 8-K on February 13, 2020, to provide supplemental information regarding its retail sales of machines and power systems for the three-month rolling period ending January 2020, December 2019, and November 2019. This data is based on unaudited reports from its independent dealers and is intended to offer an approximate indication of sales trends, not a substitute for audited financial statements. The report aims to provide investors with better insight into Caterpillar's business and the industries it serves, particularly given the time lag between Caterpillar's sales to dealers and dealers' sales to end-users. The data reveals mixed trends across different segments and geographies. While the Energy & Transportation segment showed overall declines in retail sales, driven by a significant drop in the Oil & Gas sub-segment, the Resource Industries segment saw some positive growth in Asia/Pacific but continued declines in other regions. The Construction Industries segment also presented a mixed picture with declines in North America and Asia/Pacific, offset by growth in Latin America and a slight positive in North America for the rolling three months ending November 2019.
Key Highlights
- 1Caterpillar is voluntarily providing supplemental, unaudited retail sales data for machines and power systems based on dealer reports.
- 2This data is intended to provide an approximate indication of sales trends and is not a substitute for audited financial statements.
- 3The Energy & Transportation segment experienced a decline in total retail sales, primarily due to an 11% decrease in Oil & Gas sales for the three months ending January 2020.
- 4Resource Industries segment showed a strong positive trend in Asia/Pacific (up 31% for Jan 2020) but continued to decline in EAME and Latin America.
- 5Construction Industries segment saw mixed performance with declines in North America and Asia/Pacific, while Latin America showed growth.
- 6North America retail sales for Total Machines were down 7% for the three months ending January 2020, indicating ongoing weakness in this key market.
- 7The report highlights the time lag between Caterpillar's sales to dealers and dealers' sales to end-users as a reason for providing this supplemental information.