Caterpillar July Sales Off 9%; Rate Of Decline Slows
Caterpillar (NYSE: CAT) retail machine sales fell nine percent in July compared with a year earlier, including a 29 percent decline in Asia.
But the trend line shows a slowing rate of decline in the past three months, with total sales down 12 percent in May and 10 percent in June. Asia sales dropped 30 percent in both May and June.
In North America, Caterpillar sales grew 11 percent, down from a 14 percent growth rate in both May and June.
Caterpillar's largest segment, energy and transportation, saw total July sales fall five percent, compared with a 10 percent drop in June and three percent in May.
Its next-largest segment, construction, was unchanged in July following gains of three percent in June and four percent in May.
The company last week posted a three percent decline in second-quarter revenue to $14.150 billion. Lower capital spending in the mining industry hurt sales but was partly offset by improvements in construction and energy and transportation.
In a favorable sign for sales, dealers cut their inventories for both construction and mining equipment in the recent period, and Caterpillar expects the trend to continue in the second half of 2014.
Caterpillar traded recently at $107.67 a share, up 0.34 percent.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.