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Caterpillar Retail Sales Plunge By 13%, Most Since February 2010; Decline For 17 Consecutive Months
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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Time for the Fed to buy more CAT.
<What....did you think the Fed was only buying bonds? Silly goose.>
Nahhh...Time for CAT to bury the Fed Turd in the litter box.
CAT, the ultimate indicator of the housing and construction markets.
you moth be kidding me?
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.
pods
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!.....
I guess everyone who is being forced to buy "clean diesel" tractors like in CA has already bought them.
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.
pods
let's not hijack this thread with reasonable thought please
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.
pods
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.
Send 'em to Duntroit.
Who cares what is happening in real world, we have no real stock market anymore. CAT will probably close up on the news today.
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.
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!
ori
And he's NOT kidding about Boeing lingerie either!
http://www.pinterest.com/pin/416794140487349054/
I am going to wait until I can get my recycled aluminum shorts from the skin of MH370 thank you.
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.
hahahahaahahaa. That was funny.
"Then GM triple ply TP."
With the quality problems that GM has had I wouldn't chance it.
Wrong, CAT the ultimate indicator of suppression of mining metals prices. Follow the sales margin would it be backhoe profits or megaton dump truck.
Those "non-GAAP retail sales" would probably include some "fisting".
Two boxes: One for the body, the other for the head.
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...
Shovel Ready 2.....coming this summer to a state highway department near you.
I think the Fed is using this CAT.
http://www.health24.com/Experts/Question/cat-the-drug-20040107
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...
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.
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.>
In the USA maybe..but this guy just took over an old restaurant....filled the lot with several machines and became a dealer....no 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
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.
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.
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.
youngman,
did obama visit your CAT dealer over the last 5 years...and tell everyone they were the model for the Recovery??
Oneway...that is the problem..I dont think anybody visited....lol
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.
How much of this is macro and how much is Chinese/Indian low cost competition?
None. Everyone is broke. Including Chinese and Indian farmers. (Cat equipment is great, very pricy though. Too expensive for the market to sell any.)
Theres no market in anything from Wal Mart to Cat!
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.>
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.
clearly, they will need to fire thousands of employees to overcome this. #WINNING_BY_PRINTING
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?
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.
Overcapacity everywhere you look is a bitch.
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.
I didn't know you could buy insurance to cover crap.
I'm sure that Uncle Buffett can accommodate their needs.
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.
Bid this sucker up, so we can get Hilary elected
" He gave us a Phone he's gonna do more "
In a holding pattern until the rebuilding of Democrat run cities commences by bulldozing the vacant homes and buildings and turning them into productive farmland.
I wonder how their Watches are doing..very trendy..but WTF
Weather.
Pretty soon it will be too hot to work.
sanctions on this equipment will sonn followw windoz 8ish
Elon Musk is coming out with the electric Tesla Dozer so people are putting off their heavy equipment purchases. Long Tesla!
I'll bring the jumper cables and a 5.4L SUV assistant. $120 service fee.
Don't joke about Elon Musk, I joked he should dump the Tesla car battery scheme as it was limited by wealthy electric car buyers and why not just sell the batteries to the state without the cars, then he did.
Yes CA is that stupid/corrupt.
It's been snowing for the last 17 months...
But if Yellen turns on her printers again in June, this is bullish.
Don't worry, it's the weather!
Now shut up and BTD.
It's Tuesday, sheeple.
Ponzi pump will come to the rescue.
BULLISH.
CAT forecast: Blow-up another country to rebuild infrastructure or finance minimum wage workers to live in a new McMansion.
The Actual truth here is that globally there is now a slew of Copy Cats..... Global sales are gone, not to return.
US sales are up on the shale gas boom.
weather, all because the sun came out everyday, and there were clouds. Go ask Yellen, she will confirm this.
Bullish!
The best performing retailers this year are the ones with the "going out of business" signs posted in the windows.
Besides buying all those dumped US treasuries William Dudley and Yellen of the Federal Reserve bank will have to keep on buying stocks.
Loads more of debt for the US Federal Reserve is off the books. The US Reserve keeps on stuffing debt off their books. Their accounting is starting to really stink.
It's not our fault!
It was the bad weather's fault!
Sincerely,
CAT management team.
"They didn't build that."
Get to work on those drone cats that can scrap 100 houses a day.
They should be getting a bump from Bill Gates and his purchase of the Nile Valley Delta compliments of the Arab Spring govt he financed in Egypt.
There is a play for CAT and all its copycats XOM, they'll make more off CAT than CAT.
Business will pick up when the auto manufactures run out of room. They're going to need more runways and test tracks to park all that unsold equipment. It's a symbiotic business relationship.