Summary
Caterpillar Inc. (CAT) filed an 8-K on May 13, 2020, providing supplemental information on its retail machine and power systems sales for the rolling three-month periods ending in February, March, and April 2020. This data, furnished under Regulation FD, offers insights into end-user demand by geographic region and industry, supplementing Caterpillar's official financial reporting with a more current, albeit unaudited, view of sales trends. The disclosed figures indicate a significant downturn in retail sales across most segments and regions, particularly in April 2020, likely reflecting the early impacts of the COVID-19 pandemic on global economic activity and demand for heavy equipment. Investors should note that this information is based on unaudited reports from independent dealers and OEMs and is not a substitute for Caterpillar's audited financial statements. Nevertheless, the reported retail sales statistics highlight considerable weakening in demand, with global machine retail sales declining by 22% in April 2020 compared to the prior year. The Energy & Transportation segment also experienced a notable 19% decrease in total retail sales for the same period. These trends suggest a challenging operating environment for Caterpillar and its customers in the near term.
Key Highlights
- 1Supplemental disclosure of rolling 3-month retail sales statistics for machines and power systems, furnished under Regulation FD.
- 2Global machine retail sales declined significantly, down 22% for the rolling 3-month period ending April 2020, compared to the prior year.
- 3Construction Industries experienced a 21% decrease in global retail machine sales for the rolling 3-month period ending April 2020.
- 4Resource Industries saw a 24% decline in global retail machine sales for the rolling 3-month period ending April 2020.
- 5Energy & Transportation segment reported a 19% decrease in total retail sales for the rolling 3-month period ending April 2020.
- 6Retail sales trends show a notable acceleration of declines in April 2020 across most geographic regions and industry segments.
- 7The data is based on unaudited reports from independent dealers and OEMs and is intended to indicate approximate trends, not to substitute for audited financial statements.