8-KRegulation FDExhibits & Filings

CATERPILLAR INC 8-K Report, Regulation FD Disclosure (Aug 14, 2020)

Filed August 14, 2020For Securities:CAT

Summary

Caterpillar Inc. (CAT) filed an 8-K on August 14, 2020, providing supplemental information regarding retail sales of machines and power systems for the rolling three-month periods ending July, June, and May 2020. This data, based on unaudited dealer reports, offers insights into end-user demand trends, acknowledging potential inaccuracies and incompleteness. The report aims to provide a better understanding of Caterpillar's business and the industries it serves, especially given the lag between sales to dealers and dealers' sales to end-users. Key trends indicate a significant global decline in retail sales of machines, largely driven by a sharp downturn in North America across both Construction and Resource Industries. While Asia/Pacific showed some resilience and even growth in Construction, the overall picture for machines was negative. The Energy & Transportation segment also experienced declines, with notable weakness in Industrial and Transportation sectors, though Power Generation showed some positive movement in July.

Key Highlights

  • 1Global retail machine sales experienced a notable decline, with the rolling three-month period ending July 2020 showing a 20% decrease year-over-year.
  • 2North America was a significant drag on machine sales, with retail sales down 38% for July 2020 (rolling 3 months) in Construction Industries and 49% in Resource Industries.
  • 3Asia/Pacific demonstrated relative strength in machine sales, with Construction Industries up 10% and Resource Industries down only 7% for the rolling 3 months ending July 2020.
  • 4The Energy & Transportation segment's total retail sales showed a 16% decline for the rolling 3 months ending July 2020, with significant weakness in Industrial (down 43%) and Transportation (down 26%).
  • 5Power Generation within the Energy & Transportation segment showed a positive trend, with retail sales up 8% for the rolling 3 months ending July 2020.
  • 6The report explicitly states that the provided data is based on unaudited dealer reports and is intended to provide an approximate indication of trends, not a substitute for audited financial statements.
  • 7Caterpillar is furnishing this information voluntarily to help readers understand business trends, acknowledging the time lag between sales to dealers and end-users.

Frequently Asked Questions

The primary purpose of this 8-K filing is to furnish supplemental information on Caterpillar's retail sales of machines and power systems. This data, based on dealer reports, provides insights into end-user demand trends and aims to help investors better understand the company's business and the industries it serves, particularly given the delay between sales to dealers and sales to end-users.

The data presented is based on unaudited reports voluntarily provided by Caterpillar's independent dealers and is not subject to Caterpillar's internal controls over financial reporting. The company states that this data may not be accurate or complete and is intended solely to convey an approximate indication of trends, not as a substitute for audited financial statements.

North America is showing the most significant declines in machine sales across both Construction Industries (down 38% for the rolling 3 months ending July 2020) and Resource Industries (down 49%). Globally, total machine retail sales are also down significantly.

The Energy & Transportation segment is experiencing overall declines, with notable weakness in the Industrial and Transportation sectors. However, the Power Generation sub-segment showed a positive retail sales trend in July 2020, which could be a point of focus for future performance.