Caterpillar December Sales: Not So Much 'Good' As They Are 'Less-Bad'

On Wednesday, Caterpillar Inc. CAT reported sales data for the rolling three-month period ending in December.

Total worldwide retail sales for machines fell 12 percent for the three-month period ending in December and was down in North America, Latin America, EAME regions, but rose 19 percent in Asia/Pacific. The sales data did indicate that all industries except for Oil & Gas showed some improvements.

In a report published following the monthly sales metrics, Jefferies' analyst Stephen Volkmann suggested Caterpillar's sales metrics was "less-bad" than expected.

Of particular note, the analyst's report was published prior to Caterpillar's fourth quarter results, which were released Thursday morning.

Volkmann said that total retail sales for machines were lower by 12 percent year-over-year in December, which follows a 17 percent decline in November. Meanwhile, the 19 percent increase in Asia/Pacific represents the third straight month of double digit year-over-year increases although off a very low base.

Sales from the resources industries ended the December period with a 10 percent year-over-year global decline, which marks an improvement from the 24 percent decline in November on easier comparisons. In fact, the comparisons will continue to ease throughout 2017 which will help optics as end markets have yet to find a stable bottom.

Construction sales fell 12 percent for the period rending in December which also marks an improvement from the 15 percent decline in November. The analyst highlighted the 21 percent growth in Asia/Pacific but noted that construction represents roughly 10 percent of total sales at CAT parent.

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Posted In: Analyst ColorNewsRetail SalesAnalyst RatingsCaterpillarCaterpillar Retail SalesCaterpillar SalesJefferiesStephen Volkmann
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