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Caterpillar Global Retail Sales Decline For 14th Consecutive Month

Tyler Durden's picture




 

While the stock of Caterpillar may be discounting some improvement in global industrial demand, the current situation as reflected by the company's latest monthly retail sales update is hardly as optimistic: as was just reported by the company (in a revised retail sales format), global three month rolling retail sales declined by 8% in the month of January, which was the 14th consecutive drop, and the longest string of contracting sales since the Lehman crisis and the "last" recession. What's worse, Asia/Pacific, read China, retail sales have tumbled by double digits, -17% in January, every month since January 2013.

 

If there was any good news in the report it is that North American retail sales broke the trend of three consecutive drops and posted a tiny 1% Y/Y increase. This, however, was offset by a 11% decline in Latin American retail sales, the biggest drop since April of 2012 and confirmation that the EM troubles are starting to affect corporate top lines.

 

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Thu, 02/20/2014 - 11:02 | 4457209 mayhem_korner
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New cliche: sales have slowed to a Caterpillar's pace.

Thu, 02/20/2014 - 11:14 | 4457275 superflex
superflex's picture

Looks like I picked the wrong week to become a heavy equipment salesman.

To be honest, most contractors will opt for a Komatsu, Kobelco, Daewoo, Hyuandai over Cat or Deere based on the cost savings.

Cat is the Caddilac of heavy equipment and you pay for that dearly.  

In this economy, I'm suprised anybody's buying new equipment.  I'm sure the used and repo market is doing a bit better.

Thu, 02/20/2014 - 11:27 | 4457305 TruthInSunshine
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You can't use Caterpillar machines in the snow and/or inclement weather, as they are quite delicate machines, so that probably explains the last few monthly sales declines.

This is the first winter where we've had snow and/or inclement winter weather since 2010, so...

I sold all my Caterpillar shares in 2007 & rolled that over into a little known private equity company named WhatsApp that allows users to go through the extra step of using the internet to send text messages, rather than just sending free ones provided with nearly every cell phone plan, so hopefully that will pan out.

Thu, 02/20/2014 - 11:27 | 4457328 Tinky
Tinky's picture

Don't forget that there haven't been as many peace activists to mow down in Israel over the past year, either.

Thu, 02/20/2014 - 11:42 | 4457391 superflex
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Contractors dont use wheel loaders to clear snow out of parking lots.

That's what Mexicans are for.

Thu, 02/20/2014 - 11:24 | 4457315 duo
duo's picture

ain't nobody in the gold or silver mining business in the market for consturction equipment.  Must be the law of supply and demand.  The greater the shortage, the lower the price, even below the cost of production.

Thu, 02/20/2014 - 11:29 | 4457340 Headbanger
Headbanger's picture

You just reminded me of a buddy I worked with almost 20 years ago who wanted to do some landscaping around his new custom home in Florida.

After hearing from some contractors wanting some $50,000 to do the work he set out learning all he could about used bull dozers and bought a huge

Caterpillar model in fantastic condition for about $25,000.  After a few weeks of practice with it on his property he dug out a big pond,  built up some

rolling hills  cleared out more trees for a barn, etc.  He ended up making all he spent on it doing small jobs for neighbors with it like clearing a

second driveway for them and clearing trees and sold it for some $60,000!

Thu, 02/20/2014 - 11:52 | 4457434 superflex
superflex's picture

Not bad considering a new Cat D6T LGP will set you back a measly $400,000.

My guess is he probably bought a D4 sized machine which is pretty small but perfect for small contracting

You need a permit and a low boy to move a D6 or bigger due to the wirth of the blade.

Thu, 02/20/2014 - 14:25 | 4458370 kaiserhoff
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My Grand Dad did the same a couple of times with the D-6 models. 

It helps to be a good welder.  Not hard to drive, but keeping the track together is a bitch.

 

Thu, 02/20/2014 - 11:03 | 4457214 LawsofPhysics
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Management had better knock those operating costs down some more, otherwise, no bonuses.  Now let's see, what's the single biggest cost to such a business...

Thu, 02/20/2014 - 11:15 | 4457240 kaiserhoff
kaiserhoff's picture

Lobbyists and bribes, if you do it right.

Works for Halliburton.   That and a (ahem) unique relationship with the CIA.

Thu, 02/20/2014 - 11:19 | 4457294 Cognitive Dissonance
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I'm surprised no one here mentions Bechtel. Is it because it's a private company and thus off the radar?

<If there was ever a private or public US company that might 'benefit' from a CIA relationship (and vice versa) it would be Bechtel.>

Thu, 02/20/2014 - 11:25 | 4457320 Dr. Engali
Dr. Engali's picture

There are many benefits to remaining private. It's much easier to avoid scrutiny. Probably why the NSA doesn't like the citizens of the U.S.S.A to have any.

Thu, 02/20/2014 - 11:06 | 4457219 Bosch
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On the bright side, Ukraine does need a bunch of new bulldozers. 

Thu, 02/20/2014 - 11:06 | 4457222 kaiserhoff
kaiserhoff's picture

Well that's what they get for producing a real, honest to god useful product instead of shoveling smoke.

Don't they know this is the Age of Obooga?

Thu, 02/20/2014 - 11:06 | 4457224 Obese-Redneck
Thu, 02/20/2014 - 11:07 | 4457229 Dr. Engali
Dr. Engali's picture

One would think that at some point in time people might notice that these data points lead to a trend..... nahhhhh.  Hey honey come see this Miley is twerking on teevee again. Bring a beer while you're on your way.

Thu, 02/20/2014 - 11:07 | 4457230 youngman
youngman's picture

That be the Union employees.......China dropped because they have many copies of the Cat now...exact copies with Chinese names...I see them down here in Colombia...retroengineering perfection...

Thu, 02/20/2014 - 12:45 | 4457696 TruthHunter
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"exact copies with Chinese names"

Just curious, in five years still exact copies?

Chinese crap has ruined quality. 

 

Thu, 02/20/2014 - 11:07 | 4457233 Cognitive Dissonance
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Nothing moar credit can't fix. Fire up the fiat Yellen.

Thu, 02/20/2014 - 11:10 | 4457250 yogibear
yogibear's picture

Mrs Debtfire loves to print. So does Charles Evans. They have no issues going hyper printing.

Thu, 02/20/2014 - 11:07 | 4457234 NOZZLE
NOZZLE's picture

That's okay, I see a future demand for their products in Kiev, once the fires die down.  Broken windows theory, or was that something that was thought up as a response to crime in NYC.  Either way, the more windows you break the more economic demand you have, why we could employ people to dig holes in the sand at the beach and then fill them back in.  Then they would need housing and that would create a resurgent demand for Caterpillar's equipment.  CAT sales, poised for a rebound.

Thu, 02/20/2014 - 11:07 | 4457235 yogibear
yogibear's picture

Bad news is good in face of the Fed pushing QE money into stocks.

Thu, 02/20/2014 - 11:18 | 4457291 Defenestratus
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That chart needs an arrow on it to indicate when Dear Leader spoke to the strength of the company thanks to the Porkulus bill.

 

Thu, 02/20/2014 - 11:31 | 4457349 Yancey Ward
Yancey Ward's picture

I wouldn't make much of this- the Northern Hemisphere's weather cooled for some reason starting about mid September.  Economists are trying to figure it out.

Thu, 02/20/2014 - 11:52 | 4457437 Van Halen
Van Halen's picture

Wait till the economists (and the environmentalists) discover, to their confusion, that warm weather in the northern hemisphere starts hitting in about two months - and STAYS around till almost October! This kind of stuff is unprecedented!

Thu, 02/20/2014 - 13:39 | 4458037 greatbeard
greatbeard's picture

>> the environmentalists

Yeah, them dastardly environmentalists, it's a shame we can't all live in a barren wasteland like China.

Thu, 02/20/2014 - 11:51 | 4457429 Van Halen
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Caterpillar used to be the darling of this administration. They better cut the crap with reporting this bad news or King Putt is going to hit them with an audit and an EPA investigation/fine.

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