Caterpillar Global Retail Sales Continue Sliding, Drop For 15th Month In A Row; LatAm Tumbles

Tyler Durden's picture

Any minute now...

Just like with the fabled Abenomics recovery which is said to be just around the corner, so Caterpillar, whose stock has discounted a Phoenix-like rise from the ashes, continues to disappoint month after month, with no actual pick up in sales, and as was just released moments ago, in February the heavy industrial equipment maker posted the 15th consecutive decline in global retail sales, which declined 8% from February of 2013, which in turn was a 13% decline from 2012.

The only silver lining in the data set was the tiniest of Y/Y increases for North American sales, which saw a 2% increase, up from 1% in January. However, this was more than offset by tumble in Latin American sales, which declined 16% compared to last year, far worse than the 11% drop seen in January, and the worst print for the continent since February 2010.

Finally, broken down by segment, while both Power Systems and Construction Industries machines posted global sales increases of 2% and 9%, respectively, it was the ongoing collapse in the company's bread and butter, Resource Industries, that tumbled by 37% in February, confirming the commodity glut is truly crushing CAT which is unable to increase its sell through into this all important product vertical. It also means any hopes for an Australian commodity boom and/or decoupling from China, will be very short lived indeed.

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glaucon was right's picture

When this whole shit collapses, it will be terrifying.

Sudden Debt's picture

Catchy, you should but it on a bumper sticker.

outamyeffinway's picture

How's that 2% inflation target going Yellen?

NoDebt's picture

Who here remembers Lawn Darts?

Up, up, up, then down, down, down.  Finally hits the ground and comes to rest dug in the dirt about 4", where it stays.  Sort of like that chart.

Dumpster Fire's picture
Caterpillar Stock Should Jump, Goldman Says
SamAdams's picture

I've found the solution!  Israel has said it needs another $10B to start war with Iran in 2015.  Congress will grant them the money as they don't want their dirty laundry aired by the NSA.  We all know there will be no Iran war, so all that sweet green paper could be used to purchase tons of pretty green Caterpillars (with pyramid logos), by which to crush those evil antisemite Palestinians! 

Headbanger's picture

We better buy a CAT bulldozer while they're cheap to dig ourselves out with then.

Or...    Better yet..  to dig IN with!

Blammo's picture

A road builder I once knew said"Cat equipment is the best equipment that a fuck of a lot of money can buy".

whatsinaname's picture

My bigger concern is not the drop in sales. It is that Caterpillar in recent years has been loaning this "big machine" buyers money from its own so-called "credit-card" operations. How much of that cash will get returned ?

Dr. Engali's picture

We better start picking up China's slack on the empty city building. We can start by tearing down Detroit.

yogibear's picture

"We can start by tearing down Detroit."

Isn't Detroit already being disassembled already by scavengers?


Detroit spends more money issuing parking fines than it collects from them



Your on your way to being a Detroit, the mayor's raising taxes and fees again.

bagehot99's picture

It's hard not to conclude that these people are totally fucking stupid.

The lesson Emmanuel draws from Detroit's plight is that he should do exactly the same things in Chicago?

Idiot, is the only descriptor one can use in this situation.

NoDebt's picture

Mold, rot and general entropy will fix what all the money priting in the world has not been able to.

ForTheWorld's picture

That Washington Post article had me figuratively hitting myself in the head. The topic itself is worthy of publication, but the style of the writer, and the inferences she made, were terrible. If the comments section is to be believed, her mother was a proponent of increasing parking fees and fines - which is exactly what you want to do in a place where no one wants to go, of course.

Devils Advocate's picture

I would love a newly built detroit, to bad they just sent our bailout money to Ukraine!

Sudden Debt's picture

They offered Detroit to the woodworms. It's a politcal thing...

insanelysane's picture

It puts the Dems in a real bad situation since D-town has been completely run by Dems for decades.  Even Massachusetts throws in a Republican governor every now and then so when stuff goes bad you can say it happened under that regime.  See the "blame george bush and dick cheney" strategy.  Detroit is screwed.

greatbeard's picture

>> run by Dems

Red/Blue, Red/Blue, were fucked.



Dr. Engali's picture

Sorry Detroit is just the way the globalists like it.

post turtle saver's picture

just another chance for me to pick up CAT at 27 and scoop in those $0.60 dividends... yawn... when war starts CAT will go full military and hit 200 lol

PlusTic's picture

Sounds like a global growth bonanza, hurry up and tell the bond market we should raise rates next year...

BuddyEffed's picture

Caterpillar and the Baltic Dry Index do seem to be signaling a contraction, don't they?

Sudden Debt's picture



Dr. Engali's picture

Hmmmm....... buggy whip manufacturing runs in cycles.

buzzsaw99's picture

cash for clunker bulldozers anyone?

Sudden Debt's picture

Obama should start a programm to level the rocky mountains. And rumor has it that they'll need a lot of bulldozers to do it!

youngman's picture

I am sure Cat has there political consultants in DC asking for something...

Headbanger's picture

Yeah,  A bill to bury Detroit.    Oh yeah, and that oil pipeline from Canada to the Gulf.

But I guess the bridge crossing the Bering Strait is not a good idea now that we're not friends with Russia anymore.. again.

Sudden Debt's picture

America and Russia are just FUCKBUDDIES and America is the one sitting on it's hands and knees...

but friends?... no...

Van Halen's picture

Anyone remember this?

Good thing it wasn't Bush making that speech or we'd hear about it 24/7/365.

greatbeard's picture

>> Good thing it wasn't Bush

Red/Blue, Red/Blue, same old/Same old.



Ness.'s picture

Stocks loving this news.  Almost green.  #winning

slaughterer's picture

Earnings do not matter as long as CAT can do a leveraged equity buyback we are good to go.

Rainman's picture

CAT still near its 52 week high

insanelysane's picture

Caterpillar better start manufacturing sanders, snow plows, and snow throwers if it is going to survive with all this global warming going on.

ForTheWorld's picture

If they could make some super efficient air conditioners, Australians would buy them by the pallet.

yogibear's picture

The market is hooked on Fed printing. The printing will continue and may increase as soon as the Fed sees the markets slidinging.

Winston Churchill's picture

Not publically.Its existential for the USD and themselves now.

When Mali bicomes the largest holder of UST's the jig is up.

No more ridiculous than Belgium.

Notarocketscientist's picture

This story is NOT to be found on the home page of any MSM site - yet it is the biggest story of the day.


Thank you ZH.

Ban KKiller's picture

Well it was on cnbc as they said the opposite about construction related now. 

What kind of liar can not see the worldwide slowdown? Those that are paid not to!

RadioactiveRant's picture

I agree shit storm is coming but lots of these people enjoy their cushy life drinking expensive coffee, and cheap champagne while being told they're important because theyre on tv or talk shit in a congress or parliament somewhere. They're burying their heads in the sand, because they like how it is. No big conspiracy, just fuck load of ignorance.

KenShabby's picture

It wasn't because of the weather?

chapaev's ghost's picture

"Anka", I said, "Yesterday I ought a cup of coffee in Moscow for 250 rules, and today it only costs 125!  What's going on?"

"Comrade Commander, it is deflation. In today's global debt based fiat money economy, run by interlinked central banks and large financial players, liquidity is based on debt-service. Any reduction in payments will lead to a cascading downwrad dynamic of sudden bankruptancy and consequent credit tightening, which becomes a self-reinforcing spiral dynamic based on a descending phi-factor curve."

"Well, I don;t know about any of that Comrade Anka, but it seems that I have less money in my pocket than ever!"