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Caterpillar Global Sales Down 12%, Crushes Recovery Hopes With Negative Sales Around The World

Tyler Durden's picture





 

Among other things, the month of November was memorable because for the first time, Caterpillar - that bellwether of the old industrial economy in which "stuff" was actually made, dug out of the ground, erected, or otherwise processed instead of merely hosted ad impressions - posted declining retail sales in every region around the globe. This was the first time of uniform declining retail sales since February 2010. To say that this data conflicts massively with all the rumors, fairytales and lies about a global recovery, is an understatement which is why it has not been mentioned anywhere, in hopes the subsequent month would demonstrate some improvement and perhaps an upward inflection point. That did not happen.

Moments ago CAT released its November dealer retail sales: for the second time in a row CAT posted negative retail sales across the world, with total retail sales down a whopping 12%, the lowest since February 2013, and then, going back all the way to 2010. But at least the Fed is tapering because it is convinced the global economy is finally recovering...

 


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Thu, 12/19/2013 - 10:39 | Link to Comment CounterPartyVice
CounterPartyVice's picture

Can't they just make up the numbers like everyone one else? What's wrong with them?

Thu, 12/19/2013 - 10:44 | Link to Comment Max Cynical
Max Cynical's picture

Just invert the graph and everything will be fine.

Thu, 12/19/2013 - 10:46 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Where's the shovel ready jobs......we gots the big shovels?

Thu, 12/19/2013 - 12:28 | Link to Comment aVileRat
aVileRat's picture

Annnnd....  here comes the bad numbers. Right on schedule.

 

Thu, 12/19/2013 - 10:54 | Link to Comment Lewshine
Lewshine's picture

I've been perfectly conditioned, I'll take 1000 shares of Cat please, and while I'm at it - 1000 shares short of GLD!

Thu, 12/19/2013 - 11:44 | Link to Comment aint no fortuna...
aint no fortunate son's picture

dry bulker, steel, coal and other commodity stocks surge on the CAT news because... well, just because

Thu, 12/19/2013 - 12:53 | Link to Comment de3de8
de3de8's picture

At least part of the sales miss is the after exhaust treatment on US machines. No one buying until they have to.

Thu, 12/19/2013 - 10:42 | Link to Comment buzzsaw99
buzzsaw99's picture

ceo bonus time again?

Thu, 12/19/2013 - 11:05 | Link to Comment Mike2756
Mike2756's picture

They'll have to do 100% layoffs to hit their numbers, now.

Thu, 12/19/2013 - 12:41 | Link to Comment backwaterdogs
backwaterdogs's picture

you know that's right!

Thu, 12/19/2013 - 10:42 | Link to Comment Stoploss
Stoploss's picture

Untaper!!!!

Untaper!!!

Thu, 12/19/2013 - 10:47 | Link to Comment Max Cynical
Max Cynical's picture

But, but yesterday the FED said we should expect unemployment under 6.3% and GDP growth between 2.8 and 3.2%.

Thu, 12/19/2013 - 10:49 | Link to Comment 101 years and c...
101 years and counting's picture

damn right.  cash flows/earnings are irrelevant.  the only hope is the depression gets so bad, ben/fat cow have to print 200B per month.

Thu, 12/19/2013 - 10:40 | Link to Comment 1835jackson
1835jackson's picture

They need to taper back their asset purchases.

Thu, 12/19/2013 - 10:41 | Link to Comment beercandad
beercandad's picture

Just wait until our gubbermint takes and massages these figures.

Thu, 12/19/2013 - 10:41 | Link to Comment youngman
youngman's picture

Fed Ex was a little grey yesterday too....no giant growth in internet sales like we are told...or maybe people are just picking them up at the curb....??????

 

Thu, 12/19/2013 - 10:44 | Link to Comment FieldingMellish
FieldingMellish's picture

The world doesn't need vast amounts of physical resources to operate anymore. Not a lot of metal in a smartphone. Everything we need has pretty much been mined already. We are swiming in raw materials and oil. Enough for another 30 years at least.

Thu, 12/19/2013 - 10:47 | Link to Comment NoDebt
NoDebt's picture

Please wait right there.  The "peak oil" guys will be in momentarily to beat you mercilessly about the head and neck.

Thu, 12/19/2013 - 10:49 | Link to Comment FieldingMellish
FieldingMellish's picture

Are there any left?

Thu, 12/19/2013 - 10:57 | Link to Comment NoDebt
NoDebt's picture

Yeah, apparently plenty.  Tune in on the weekend here sometime when they throw up an article about Canadian oil or the Baaken Shale.  I've never seen so many "internet energy experts" crawl out of the woodwork in my life.

Thu, 12/19/2013 - 13:45 | Link to Comment Freddie
Freddie's picture

Post something about pot sometimes on almost any message board.   The pot defenders will come out of the woodwork in a second.  The evil cigarettes and evil alcohol arguements.  I like none of them except alcohol once in a blue moon.   Cigarettes are the worst.

They may also go off on hemp too.

Thu, 12/19/2013 - 10:44 | Link to Comment Quinvarius
Quinvarius's picture

Bankers are promising to supply the world with commodities out of their warehouses.  They are selling all kinds of futures below farming/mining/refining costs.  Who needs to drill or farm?  We will all live off of what the bankers have sold us.  Their warehouses must be stuffed full!  We don't need any heavy equipment to make anything for a while.

Thu, 12/19/2013 - 10:43 | Link to Comment Winston Churchill
Winston Churchill's picture

CAT dead doesn't bounce.

Whocouldhaveknowed.

Thu, 12/19/2013 - 10:46 | Link to Comment The Shape
The Shape's picture

Who's making stuff for cents a day? Thailand must be too expensive. Move on before they get uppity about their $10 a day!

Thu, 12/19/2013 - 10:44 | Link to Comment Seasmoke
Seasmoke's picture

The Cat is out of the bag.......DEFLATION !!!!!!!!!

Thu, 12/19/2013 - 10:48 | Link to Comment buzzsaw99
buzzsaw99's picture

DEFLATION? Not for CEO Oberhelman it isn't. Life is good for those bitchez.

Thu, 12/19/2013 - 10:47 | Link to Comment madcows
madcows's picture

It would be interesting to see if Deere, Hitachi, Kubota, et al are seeing a similar decline.

Thu, 12/19/2013 - 10:47 | Link to Comment NoDebt
NoDebt's picture

Thank God we've learned how to support the stock market without the need for a real economy.

CAT's share price has perfectly offset the sales decline the last few months.  12 up on the shares, 12 down in sales.  All things in balance, I guess.

Thu, 12/19/2013 - 10:46 | Link to Comment Bosch
Bosch's picture

I see a massive glut of CAT equipment just sitting around rusting.  Going to be a while before the construction industry works through the resale market before having to fork over the money for new equipment. 

Thu, 12/19/2013 - 10:57 | Link to Comment esum
esum's picture

ah no big deal RAISE THE PRICE ON SPARE PARTS by 12%.... will more than offset the lack of sales... they make about 3% on the iron and parts is where its at... 

Thu, 12/19/2013 - 11:02 | Link to Comment orangegeek
orangegeek's picture

Deflation folks.  Gold is tanking and USD is rocketing.

 

No guarantee this will continue, but looking at the monthly USD, much effort has been made to keep it down for the last three years.

 

http://bullandbearmash.com/chart/dollar-monthly-closes-remains-bull-chan...

Thu, 12/19/2013 - 14:28 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

rocket?
Not quite. Food & fuel haven't gone down with gold, wages are still too low vs goods prices.

Thu, 12/19/2013 - 11:03 | Link to Comment youngman
youngman's picture

It seems they are getting into Jewerly...they advertise watches down here in Colombia...for the Golddiggers...thats a pun

Thu, 12/19/2013 - 11:10 | Link to Comment 0b1knob
0b1knob's picture

"Negative sales"???????

Does that mean that they are buying their own equipment back?

Thu, 12/19/2013 - 11:24 | Link to Comment NoWayJose
NoWayJose's picture

Hope those Chinese factories are working out for Caterpillar....  Not that customers would notice any quality control problems that would cause them to switch to another brand...  And not that Caterpillar's intellectual property would be used in a different state-run factory to make identical products at a lower price for the Asian market....

Thu, 12/19/2013 - 11:40 | Link to Comment dobermangang
dobermangang's picture

How many ghost cities does the world really need???

Thu, 12/19/2013 - 13:50 | Link to Comment Freddie
Freddie's picture

Maybe a few of those ghost cities can get zombies to move in.

Thu, 12/19/2013 - 11:47 | Link to Comment autofixer
autofixer's picture

I don't know how this could be true, haven't they seen Gold Rush?  Those jokers go through equipment like a Thai hooker goes through condoms.  

Thu, 12/19/2013 - 12:14 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

Can you dig it? Can you dig it? Can you dig it?!

Thu, 12/19/2013 - 12:23 | Link to Comment Dre4dwolf
Dre4dwolf's picture

Taper news = Everything falling apart.

 

Taper = Pull rug out from under the economy.\

 

Atleast we will have a hard-crash and everything (prices) will correct down to what they should be.

 

Just take the hit already so we can find out a fair market value for everything.

Thu, 12/19/2013 - 14:25 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Al Bernanken & Princess Yellen to the rescue with *new* economic magic carpet!

Thu, 12/19/2013 - 12:33 | Link to Comment post turtle saver
post turtle saver's picture

yawn... cyclical business is cyclical... nothing really to see here

Thu, 12/19/2013 - 14:25 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

hasn't anyone told these neo-luddite dirt-shovelers?

Big shovels, yes, but to recover that 12% they should go right into Treasuries, Bitcoin, Facebook ads and make a Zynga app called CaterPillaVilla getting people to use virtual dozers to make virtual cities and pay real dollars for add-on items.

Right?

Am I right guys?

Thu, 12/19/2013 - 15:32 | Link to Comment icanhasbailout
icanhasbailout's picture

As long as their stock chart looks better than that, that's all we care about.

Thu, 12/19/2013 - 16:28 | Link to Comment mt paul
mt paul's picture

that's a big turd

in the liter box ..

Fri, 12/20/2013 - 05:20 | Link to Comment Element
Element's picture

There's that multi-year self-replicating macro trend-line again, i.e. settling by the bow ... and the band played on ...

Fri, 12/20/2013 - 11:45 | Link to Comment paintman
paintman's picture

My business' Nov numbers were 60% of that decline. My mid-Dec numbers are twice that. It ain't so good our here on the street.

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