Caterpillar Retail Sales Plunge By 13%, Most Since February 2010; Decline For 17 Consecutive Months

Tyler Durden's picture

If someone was looking for a reason to buy CAT stock (alongside the company's stock buybacking -sic- management), and send it to fresh all time highs, today's latest monthly report of CAT April dealer retail sales should be sufficient.

First, the good news: US retail sales of machines in the US posted its fourth monthly pick up, rising 12% compared to April of 2013 which print, however, was the biggest, at -18%, annual drop for US sales since 2010 so this was merely a modest stabilization relative to depressed comp levels.

As for the bad news, well: everything else. The drubbing in sales across all other markets continued, with sales in Asia/Pacific, EAME and Latin America all dropping by more than 20% compared to last year.

End blended result: global retail sales have now declined Y/Y for 17 consecutive months, which incidentally is just shy of the longest stretch of declining retail sales on record. Worse: the -13% drop in world retail sales matched the biggest annual drop since February of 2010.

Frankly, we are surprised that CAT hasn't started reporting non-GAAP retail sales: those which exclude all negative numbers.

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Cognitive Dissonance's picture

Time for the Fed to buy more CAT.

<What....did you think the Fed was only buying bonds? Silly goose.>

Headbanger's picture

Nahhh...Time for CAT to bury the Fed Turd in the litter box.

boogerbently's picture

CAT, the ultimate indicator of the housing and construction markets.

pods's picture

So companies that make things that are used in building stuff and actual commerce are in the shitter but companies that plug you into the matrix are having money thrown at them?

Sounds about right in this day and age.


RevRex's picture

aaaaaaaaaaaaahhhhhh the green shoots of the ObowelMovement's recovery summer FIVE!!!!



IF both parties are the same, can someone point out the racial hiring quotas for white people that the republicans hid in one of their finance bills, or any of their bills?


I get so tired of braindead LiberTARDians spouting their stupid lies and showcasing their ignorance....


Feel free to down arrow me if you are too cowardly to answer my question!.....

localsavage's picture

I guess everyone who is being forced to buy "clean diesel" tractors like in CA has already bought them.

pods's picture

Well I will take a shot at this I guess.  Both parties are not the same. If they were, there would be no divide.

What you are looking at is differences on the margin.  Usually in places that are emotionally charged.  That gets people riled up, and thus supporting one of the two parties.

In terms of the government's health, both parties are no different.  Government spending and power goes up with both of them, at our expense.

Racial hiring quotas in a bill is nothing more than a bit of dried parsley on top of a meal. Presentation.  A hat tip to their base if you will. 

Social issues are the main thing used to differentiate between the parties. And even these social issues achieve their goal.

Ex:  Gay marriage.  

Either the government forces churches/states to marry gay people or accept the marriage as valid, or they force the states to disregard their own laws passed.

Either way the government is in charge and has just acquired more power over us.

Or how about guns?

The "right" says that law abiding citizens should be able to be armed. The "left" says that government may determine who can and cannot own a gun.

Both positions are government heavy.  The 2nd amendment has no ambiguity as to being law abiding as a prerequisite for owning and using guns.  

Either way the government is in charge of determining who can and cannot own and use a gun.  


kliguy38's picture

let's not hijack this thread with reasonable thought please

pods's picture

My bad.  

Okay, well I have heard an analyst at DB wrote that this Cat slowdown is actually Caterpillar building a cocoon and it will metamorphisize into a beautiful and profitable butterfly by the end of 3Q2014.


Dr. Engali's picture

There is so much over capacity in every sector, that this will carry on for a while.  The best  use for Cat's machinery would be to tear down some strip malls, office buildings, dead factories, and residential housing to return the land to a usable state.

ilion's picture

Who cares what is happening in real world, we have no real stock market anymore. CAT will probably close up on the news today.

what&#039;s that smell's picture

why should CAT waste its money on CAPEX or sales when it can better use revenue for share buybacks and stock options?

smells like ayn rand to me.

Oh regional Indian's picture

Did everyone miss the story here?

Caterpillar is now a Fashion Retailer who happens to make Earth Moving equipment.

Here in Bangalore, the most I've seen of CAT is swanky apparel stores in the most expensive locations.

Next UP, Boeing lingerie!

Then GM triple ply TP.

The re-making of the be-he-moths!



BlindMonkey's picture

I am going to wait until I can get my recycled aluminum shorts from the skin of MH370 thank you.

insanelysane's picture

I heard a rumor that every high level manager at CAT has been given a book to read and the title is "The Art of Channel Stuffing" by GM.

Atomizer's picture

hahahahaahahaa. That was funny.

BlindMonkey's picture

"Then GM triple ply TP."


With the quality problems that GM has had I wouldn't chance it.  

cowdiddly's picture

Wrong, CAT  the ultimate indicator of suppression of mining metals prices. Follow the sales margin would it be  backhoe profits or megaton dump truck.

WhyDoesItHurtWhen iPee's picture

Those "non-GAAP retail sales" would probably include some "fisting".

kchrisc's picture

Two boxes: One for the body, the other for the head.

Sudden Debt's picture

Well, the Federal Highway Trust Fund will run out of money by the summer causing over 100.000 highway projects to shut down.

So no need for extra scoopers I guess...

unless Obama starts a "adopt a pothole" project...

Cognitive Dissonance's picture

Shovel Ready 2.....coming this summer to a state highway department near you.

youngman's picture

My Cat dealer down here in Colombia that I drive by every week is out of business..or he moved..they loaded up all the machines last week and took them away...

withglee's picture

CAT dealers "don't" go out of business. Dealer principals and ownership may change but they never go out of business. They are huge businesses and CAT monitors dealer management very very closely. CAT dealers are captives of the factory. They're not like an auto dealer.

Cognitive Dissonance's picture

Sounds like his 'floor plan' financing was revoked and his machines re-possed. That would most likely include his parts department as well. I suspect bankrupcy court awaits.

<GM isn't the only corporation that channel stuffs.>

youngman's picture

In the USA maybe..but this guy just took over an old restaurant....filled the lot with several machines and became a parts or repair shop...this was out in the boonies too...not a very good location in my mind...but he had several million dollars worth of equipment there....John Deere too...all brand new

Max Cynical's picture

Owning a Cat dealership is a very exclusive club...with very little turnover. When we were working with Cat a few years ago, the smallest dealer in the nation was more than a $100M/year company.

cowdiddly's picture

Yes you can do that kinda business when one(1) brass bushing for the undercarrage costs $2400 for 1 small part. I know, I will never own another piece of equipment that say CAT. Once you buy one the CAT has you by the balls.

withglee's picture

That's why you have a choice. To major contractors where downtime costs dearly proper maintenance and product support are the order of the day. It's about not being penny wise and pound foolish. Most small independent contractors drool over CAT equipment but know it doesn't suit them economically. Others like you feel CAT rips them off. Fine ... your appraisal ... your choice.

onewayticket2's picture


did obama visit your CAT dealer over the last 5 years...and tell everyone they were the model for the Recovery??


youngman's picture

Oneway...that is the problem..I dont think anybody

AccreditedEYE's picture

Is @Volslinger going to update his/her short call from last year? Maybe disclose to us how much he/she made going long and fading ZH-ers taking the advice in the report literally? Dude was a huge Bull on markets last year too.

SpeakerFTD's picture

How much of this is macro and how much is Chinese/Indian low cost competition?

CPL's picture

None.  Everyone is broke.  Including Chinese and Indian farmers.  (Cat equipment is great, very pricy though.  Too expensive for the market to sell any.)

MFL8240's picture

Theres no market in anything from Wal Mart to Cat!

Cognitive Dissonance's picture

That's why you have in-house financing with zero down, zero % interest and 30 years to pay on a piece of equipment with a working life of 15. Governments aren't the only organization that kick the can down the road.

<Sadly even that is no longer working. Yellen better start shoveling fiat out the door in a hurry.>

NoDebt's picture

Other countries don't want to buy NSA-hacked bulldozers.  They spy on you and tell the NSA where you're digging, what you're digging and have sensors in the blade that detect precious metals and rare earth elements.

101 years and counting's picture

clearly, they will need to fire thousands of employees to overcome this.  #WINNING_BY_PRINTING

NoWayJose's picture

One of the big trends is Computer Aided Earthmoving Systems combining on board computers and GPS. Would you want to buy Cat machines that let the NSA know what and where you are building things?

Jadr's picture

Even if your premise is correct, I doubt that much of the machines usage are for clandestine activities or for projects which secrecy is necessary.  If the NSA wanted to know what you were building or where I don't think they would have many issues regardless of the brand of construction machinery being purchased and used for the projects.

Dr. Engali's picture

Overcapacity everywhere you look is a bitch.

813kml's picture

I think the obvious solution is for Cat to use its inventory of backhoes to dig some huge trenches and for GM to dump its undrivable cars in them and collect the insurance money.

Dr. Engali's picture

I didn't know you could buy insurance to cover crap.

813kml's picture

I'm sure that Uncle Buffett can accommodate their needs.

BlindMonkey's picture

Doc, do you know if  GM is on the hook to recall their parked inventory waiting to be scrapped?  Repairing stuff before it is permanently recycled.  I think that would be the ultimate broken window.

blueEyedDevil's picture

Bid this sucker up, so we can get Hilary elected