Caterpillar Sales Latest Cratering Confirm Global Growth Slowdown

Tyler Durden's picture

While CAT's CEO puts on a brave face, the results from his company are clearly indicative of the slowing global growth that everyone (apart from nominal equity indices) knows is occurring. For months, talking heads have used CAT's results as a proxy for growth and as they are rising confirming their inherent BTFD biases; however, this month's terrible results - with Asia/Pac down 12% on a 3-month rolling basis and North America down 11% - appears to confirm what has been evident in the lagging global GDP data for over a year - things are not picking up.

CAT Results...


Confirming the slowing Global GDP (that stocks seems so adamant to ignore)...


for now...

Charts: CAT and Bloomberg

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WayBehind's picture

Those must be "unadjusted" numbers. Everything is fine :)

camaro68ss's picture

who needs to build things? all the wealth is in the stock market and Financial sectors, duh 

Sudden Debt's picture

who needs to build things?



as Obama would say....


and he's right....

Cheap Mexican construction workers did that....




damn... those asian chicks on the left side of the page are back on Zerohedge.... man... do they have bonkers or what....

gona download some asian porn....

otto skorzeny's picture

I had 3 small town cops in my neighborhood put in 60K pools this past year-so do I get to use 'em since i paid for 'em?

Tijuana Donkey Show's picture

You didn't pay for them, all the busts that came in light did. When your in court, your not going to say that 50K and 2 kilos are missing, you STFU, it's just a transaction tax. Seen it first hand, half of america's police force would be in jail if you just did basic means testing of assets to income. Extra credit - check the whole family....

GetZeeGold's picture



Hey DOW 14K......not bad huh?

mayhem_korner's picture



That reads like an IM from Ben to Timmay.

DeadFred's picture

Just print more


Dr. Engali's picture

It's all good. Soon Cat will be making products to help us haul our fiat around. That should help their earnings.

resurger's picture

No one cares about the real economy, the stock markets is the most important to ramp atm.

Dow 36K



Ness.'s picture

9:15 (CDT) Fed begins buying treasuries under outright POMO program, ah buying stawk futures.  Look at a fucking ES chart at 9:15.


Sickening - it's really too bad it has come to this.

TruthInSunshine's picture

This is the point I've been hammering over and over again (b/c I believe it); it's not just that the central planners are selling the bullshit memo again that "equity markets correlate with the real condition of the real economy," but consider that Bernanke is a year away from leaving his post, and that's he's pumped the "Virtuous Circle" macroeconomic theory more than even Greenspan did when he was Fed Head.

The difference now is that the real economy has known 3 condition under Bernanke's helm since the "financial crisis that noone could've seen coming":  1)  Dropping; 2) Stabilizing; 3) Marginally improving.

I'm probably just a pessimist, but now that the real economy is, at best, stagnant, and more likely, contracting in real terms again (i.e. decontruct the official growth figures, strip out the impact of inflation as a metric that allows growth to be reported - meaning that real growth reported is actually nominal), Bernanke risks a completely tortured legacy if equity markets fall, especially before he scoots out the door, as pumping equity markets higher in nominal terms with massive amounts of leveraged debt has been his one sole "accomplishment" (the funny thing about "accomplishments" like these is that they tend to be viewed as wealth-destroying vortexes & failures over a longer time frame) in 4 years of crisis management post 2008.

The last thing Bernanke wants is to be publicly ridiculed by the likes of the brain dead Steve Kroft for his incredibly idiotic "Virtuous Circle" macroeconomic theory.

sschu's picture

The last thing Bernanke wants is to be publicly ridiculed by the likes of the brain dead Steve Kroft for his incredibly idiotic "Virtuous Circle" macroeconomic theory.

Herein lies a fundamental issue, these guys are so wedded to a mindset that they can never admit they were wrong.  Reducing rates and priming the pump has always worked, it will work now ... even 4+ years after the crash and mountains of evidence to the contrary.  

They misdiagnosed the problem from the beginning, liquidity vs insolvency, a LOT of smart people told them so, but they "stayed the course".  So here we are, stuck in a stagnant cycle with an addition $5 trillion in government debt and trillions more owed somewhere that is impossible to track.    

WTI approaching $100, gasoline the highest it has ever been on this date, nearly 50 million on food stamps, 9 million on SSDI (Zuck says 11 million) and millions out of work with zero hope.  A trillion $$ in un-dischargeable higher education debt with over 10% delinquency and some of our largest states bankrupt except for the paperwork. (Illinois, Cali, NY)

And we reelect the authors of this fiasco.

God has removed his protective umbrella over the US, he did so in 2001, we are on our own now.  :-(


Hongcha's picture

Well stated TIS; but that son of a bitch's legacy is going to get handed to him like a floppy wet piece of meat.

He has performed his task well and no doubt pleased his masters.

mayhem_korner's picture

 things are not picking up.


Oh...things are picking up alright.  Like a snowboard at the crest of one of A-basin's double-black-diamonds.

Law97's picture

A-basin's double diamonds are THE best skiing anywhere.  Thank you for mentally taking me away from the collapsing world economic system if for just a few moments.

desoto's picture

Working in the largest packaging company in North America I can confirm the slowdown.  Our orders have softened considerably in the last two weeks with machine downtime (economic downtime) now being scheduled.  The big reset is coming soon!!

Oldwood's picture

Why should we believe you when we have government (seasonally adjusted) data that says its all good and getting better everyday? admittedly my business is sucking wind but I'm sure I'm also the exception to this rising tide, and am only failing due to my constant thirst for money. I'm currently studying new business approaches that are centered on the workplace becoming simply a place for "employees" to come and have coffee and donuts. Oh, and we are also going to learn to speak French!

Winston Churchill's picture

May I suggest Chinese instead,or Russian.

My businesses were also sucking wind from before Xmas to early Feb.

We normally get a fortnight (two weeks to American speakers)hangover period then.

This year it was six weeks,It gone crazy since then, hope yours improves also.

Rip van Wrinkle's picture

Spoke to my ex-business partner last night and he told me the phone stopped ringing at Christmas, as it always does, and hasn't rung since. He asked to give him a call every day to make him feel better.

Temporalist's picture

You know what your problems are?  Not one of you uses Facebook and Twitter enough.  I mean, you can start your own social network and have "Friends" "like" your posts (and stuff) and then generate billions from it.  Everyone is doing it.  You are just missing the boat on these completely necessary tools of the new economy.  Plus you can then create an app for that...whatever that is.  I think there is now an app to tell you how much of a complete loser you are...and it comes directly to your smart phone!  Who wouldn't want that?!?!


Oh...and free money.  Can't forget the free money.  You will need free money too.


Oh and debt.  I almost forgot the massive amounts of debt you'll need as well.



resurger's picture

Desoto +1

But i have to tell you that we have "Decoupled" from reality long long time ago... We are only waiting for the zombies to eat one another.

R.I.P Reality.

Sudden Debt's picture

Maybe their SHOE DIVISION will outperform and make up for the rest?

3.7.77's picture

And found at your local ChinaMart.

Sudden Debt's picture


TruthInSunshine's picture

Bernanke has pledged to purchase each and every unit of Caterpillar production from hence forward with fiatkis.

"The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."

-Alexis de Tocqueville


(Ritholtz's QOTD, his first positive contribution to society in about 5 years.)

DaveyJones's picture

and with the public's grandchildren's money

michael_engineer's picture

Screw their money. It's the publics grand children's resources that have pulled forward, leaving them what? Doodly Squat, as Grandma at the country store in Josey Wales might profess.

chinaboy's picture

As far as China is concerned, CAT's share in the market has been dropping steadily since 2005.

otto skorzeny's picture

CATs are like AKs-they run forever with basic maintenance

PUD's picture

Cummins warned this morning...earnings to be 7 cents light

Sockeye's picture

Lafarge took a series of charges in 2012, due to write-downs on its Greek and Western European and several business restructurings. These more than offset the one-off gains it achieved from the sale of businesses. In fact, if it were not for the € 466 million (US$ 620 million) gain from the sale of its gypsum businesses last year, the company would have made a net loss.

LawsofPhysics's picture

Do Nobel laureates still believe in infinite growth of any one species in a finite and complex closed system?  Good luck with that.  As the available energy decreases, so will the real eCONomy.  Same as it ever was, now that we have a global eCONomy it is time to start thinking like the survivors of Easter Island and get to work on that "raft" to take a lucky few to Mars...

michael_engineer's picture

Screw Mars. Alaska ought to be warm enough soon, and fish and fur stocks will recover within years of a slowdown in their unsustainable catch business model.

And Alaska is upwind from the Yellowstone caldera should it go off anytime in the coming millennia so the grand grand grands won't suffer direct effects.

BlueStreet's picture

CAT will do well cleaning up the aftermath after TSHTF.  It's a post revolution play.   

otto skorzeny's picture

can't the govt just pay union operators $50/hr to dig a hole and then fill it back in-that will increase demand for $400k CAT excavators. kind of like subsidizing US farmers so they can afford $400K John Deere combines.

Osmium's picture

They might already be doing that.   Cat 450E ready projects.

nobusiness's picture

3D printing must be eating into their sales

otto skorzeny's picture

i just printed a 325 excavator to start tearing down abandoned houses

Oldwood's picture

An excavator is the absolutely best toy ever. I bought a Bobcat 334 to do work around my house and it is a blast. Unfortunately I spend a lot of time repairs sprinkler lines I accidently rip out but still...its a hoot!

Osmium's picture

I rented a mini excavator to replace the culvert under my driveway.   It was a lot of fun to operate.

Smegley Wanxalot's picture

This can't be true because the government propaganda machine told me otherwise.  Bernanke wouldn't lie to us!

nobusiness's picture

Gold Rush Guys are buying used equipment

LongSoupLine's picture

CAT...a Cramer fucking favorite.  Go fucking figure.


It should fucking explode to the upside soon, because everyone will need heavy fucking equipment to fucking carry all that devalued fucking fiat to the store to buy a fucking loaf of horse shit laced Monsanto bread.


Fuck you Bernanke, fucking Ivytard fuck.

otto skorzeny's picture

fuckhead Cramer likes Toll Bros also but their #s sucked donkey today too.

gjp's picture

CAT, too bad being stuck in the real economy.  Look at LinkedIn or Amazon, no limits there, and no need for earnings either.  Both up 1%-2% again, on top of 30%+ gains in the last three months.  Anyone short these and long gold must really be stupid (said while looking in the mirror ...)

jdelano's picture

Try CRM.  Lost my ass in a long dated put option on that POS.  Many thanks to the yen/usd though for making up the difference.