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.