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Caterpillar Suffers Worst Month Since Lehman, 26 Consecutive Months Of Declining Retail Sales
Once upon a time, Caterpillar was the world's industrial bellwether and a Dow Jones Industrial staple. Lately, in addition to suddenly developing a very close relationship with Federal authorities who "are investigating the movement of cash among Caterpillar Inc. ’s U.S. and overseas subsidiaries", CAT has become a completely ignored and forgotten poster name of the "old-economy" (the on in which cash flow still mattered). However, there are those who still believe that the second coming "eyeballs" as the only valuation term category is destined to end in tears, and as such care about how companies like CAT do.
Sadly, we have some more bad news: Caterpillar just reported that in January, it suffered its worst retail sales month since Lehman, with global sales plunging 14% from last January (when sales in turn had dropped 8% from a year before, while the year before had slid 3% from the year before that and so on). In fact, January was so bad, it was the first month since 2013 when CAT reported declining sales across all regions in which it does business, now that the dead CAT bounce in North America is over.
Finally, those who disagree that the S&P500 is really only and just AAPL, will be even less pleased to learn that as of January CAT was now recorded a record 26 months of consecutive declining retail sales, which is now 7 months more than during the Great Recession period. This alone should make some wonder just how bad the unspoken depression the world is currently in, truly is?
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They can make it up in volume.
If you like your recovery, you can keep your recovery
Whoa, whoa, whoa. Is Tyler suggesting that Obama is a lying sack of shit?
What's the effin' surprise here? Did you think the Baltic Dry Index could tank and it not affect Catepillar? The BDI is the harbinger, baby. All the news, good or bad, spills from it. Look out for when potash shipping drops. Some folks won't be getting their supper. Literately.
BDI: The last, functional, market beacon standing.
Just buy the entertainment stocks and DIS, NFLX, AMZN etal. All the unemployed will sit at home, shop online, watch all the new shows and when they want to take a break and refresh they'll go buy a 6 dollar latte at SBUX so don;t forget them
Lots of construction going on in my neck of the woods (Central Florida). But my wife noticed something quite funny the other day. Big yellow construction equipment with Chinese writing all over them. Definitely not CAT, that's for sure. Never seen this type of equipment before. Couldn't stop starring, just caught me off guard.
Maybe Sany, Zoomlion, Longking, or XCMG. all Chinese. XCMG is in partnership with Caterpillar in China. Komatsu is king in China, followed by Hyundai and Daewoo/Doosan.
CAT and BDI don't lie. Declining inputs leads directly to declining outputs.
My barber's Grandmother's Step-Grand Daughter makes $15 an hour working Starbucks in Seattle. She only works 29.5 hours a week and after taxes gets a check for $993 a month. For details on this great opportunity chcek out www.Krugman-Enron.com
Bravo!
So she makes ~ $1800 a month and keeps $993 ?
Guess I'm not doing that bad in heavily taxed Belgium then. I work 32 hours a week as a web developer and keep 75% of it.
Does she have deductions at all?
Your barber's Grandmother's Step-Grand Daughter gave me an STD.
That's what you get for sticking your dick in it and not wearing a slicker. Serves you right. Stop complaining.
Keeping my long position in "Lying Inc".
They can make it up by buying their own stock.
The i-dozer will fix it all.
But does it have the "Bury Banksters" app pre-installed?
Schroedinger economy.
Say... Does that there Schroedinger economy come with or without a dead cat bounce? Let me guess...
BOTH!
By rights Caterpillar shouldn't be as sucessful as it is. It uses expensive union labor in the heart of the rustbelt, in old plants. Like automobiles, it should have built state of the art factories in the south where the labor is cheaper. Thus far Cat has mananged to survive by making products people want to buy, but it seems as though that is coming to a close.
Maybe they're about to get a bunch of military contracts? Otherwise, why would Buffet be stupid enough to buy their stock?
Cat just closed two plants, one in WNC and another in N. Ga. No unions there I can guarantee it.
Who makes better construction equipment than CAT? John Deere construction equipment is shit, when it comes to working in gravel pits, and quarries.
Caterpillar also builds locomotive engines - they shut down a big plant in London, Ontario a couple of years ago - because the union wouldn't accept a pay cut, and moved all manufacturing to the US at a plant that hires $15/hr temps.
That helps the Fed push off to H2 2016. Which will then be pushed to H1 2018.... Etc...etc...
Ha, Cramer said what about Catepillar recently? I bet that shill is eating his words now. I think he said something about their conference calls were the only ones he needed to hear to know what's going on.
He is "eating his words" all the way to the bank. Remember, he gets paid huge amounts of money to cheerlead this bullshit.
From what I hear, those words are all zero calories as well. So no there's no real issue with his actions.
Is Cramer still on the air?
Check out Oshkosh (OSK):
http://www.marketwatch.com/investing/Stock/OSK?countrycode=US
Now, they do have a lot of military work. I had to hire on for a year to make armor between jobs. They do not seem to be doing so bad when I looked at the 5-years graph.
They have around 6 billion in cash and 39 billion in debt according to Yahoo stats. They probably should start conserving cash and end their dividend. It's not like China needs to build anymore ghost cities.
China is building homes for 300 million rural citizens. They will keep building and filling these homes no matter what the unscrupulous reporters say. They will use Japanese, Korean, and Chinese heavy equipment.
Sooooooo
Whatever happened to all the "Shovel Ready Jobs" that Obie promised??? That *would* give CAT a boost, no? So it goes in DC - Wall Street not Main Street.
Gotta love this comment:
“My next-door neighbor’s two dogs have created more shovel-ready jobs than this president,” Johnson said near the end of the debate.
http://www.politico.com/news/stories/0911/64232.html
Maybe it is time to change to the DJIA to the Dow Jones Old Fashioned Outsourced Average. DJOFOA Wait wait - no the Squid is in the INDUSTRIAL average? We are saved!
But, but, The Exaggerator-in Chief told us we have been in the "greatest recovery" since WWII...
i'm surprised they haven't moved their factory to china by now. everybody else has.
CAT is partners with XCMG. They will build a few and kick CAT out, continuing to copy CAT's design.
They do what's good for China. Does your country do what's good for you?
They pay temps $15/hr to build their engines - how much cheaper would it be to build them in China?
What's the deal with CAT licensing? I see they are now into combines, and farm tractors - as well the local hardware store is now selling CAT branded inverters, and battery boosters. Maybe they can write off the brand dilution as a loss of goodwill.
Am I wrong assuming that real value-added manufacturing companies like CAT are not quite reaping the benefits of the "recovery"? All the "growth" seems to be in the service industry (e.g. waiters and burger flippers), but you can always rely on real estate and derrivatives growth, right? And there's always the money printer available so it's all cool!
Lot of good used Cat equipment out there. I think new sales will stink for a number of years.
So you mean CAT makes quality stuff that lasts too long? How times have changed... it used to be all about quality... I guess cutting corners and making stuff that don't last more than 5 years is the new normal...
I kinda feel sorry for Peoria, I lived there for a year or two. Nice people, but they will close up shop if Cat ever leaves. That is ALL they have.
Good-time Charlie's got the blues.
http://youtu.be/FALsYK6ONTs
Whenever Cat & Deere decide to quit fuking the customer, things might improve a skosh. Im trying to buy a compact track loader from them, $60K or so. They still elect to nickel and dime you to death, horn $225(looks like a $2.00 horn) back up camera $625 (thats BS) it goes on and on for items that should be std in the first place.
The cost and hassle of repairing modern tractors has soured a lot of farmers on computerized systems altogether. In a September issue of Farm Journal, farm auction expert Greg Peterson noted that demand for newer tractors was falling. Tellingly, the price of and demand for older tractors (without all the digital bells and whistles) has picked up. “As for the simplicity, you’ve all heard the chatter,” Machinery Pete wrote. “There’s an increasing number of farmers placing greater value on acquiring older simpler machines that don’t require a computer to fix.”
The problem is that farmers are essentially driving around a giant black box outfitted with harvesting blades. Only manufacturers have the keys to those boxes. Different connectors are needed from brand to brand, sometimes even from model to model—just to talk to the tECU. Modifications and troubleshooting require diagnostic software that farmers can’t have. Even if a farmer managed to get the right software, calibrations to the tECU sometimes require a factory password. No password, no changes—not without the permission of the manufacturer.
New High-Tech Farm Equipment Is a Nightmare for Farmers
http://www.wired.com/2015/02/new-high-tech-farm-equipment-nightmare-farm...
Hate to say it but buy a Mahindra best tractor I have ever owned. 5 yr warrenty no plastic on it, always fires right up. Had it for 3 years now. Sure can't say the same for my x500 lawn mower nothing but nagging little problems and now the warrenty is gone so I think it will be going to this spring. I used to try and support usa built produts but now I look at what is going to last the longest and is the best value.
The Agway where I used to live is a Mahindra dealer. The local farmers like them. That's a vote of confidence.
Green shoots! Recovery! BULLSHIT!! This is all now owned by OBAMA! We have become an Obamanation.
(Insert the whole lying, Kenyan, narcissist, socialist descriptive string here)
Many, many used equipment auctions all around. Why buy new when used is a screaming buy? This is a buyers market. Up with deflation! Down with inflation! Or do I have that ass backwards? Don't know as I have lost my reasoning due to downward pressure of the free markets. Ha-fucking-ha!
Is there an economic Depression app for that?
Awesome....
Caterpillar- 26 moths and not a butterfly in sight.
aye!!! my eye.....balls....!!!
abandoned heavy construction equipment can become important habitat in the life cycle of migratory economists and breeding locale for their offspring. No more 'backseat of my fifty-seven Chevy...'.
Those who fail to consider subtle alterations in life cycle events and behaviors of keystone species and alpha preditors.....well ....they don't get it ....do they....
The cat plant here makes the track parts. Spent 2 weeks running about a mile of copper in that place. Only a few are cat employees. The rest are from a subcontracter
This is happening while there is an insane amount of pipeline going in all over the country. The shuttering of coal fire power and mines will probably kill these guys. And the increase in electric will probably kill us.
Short diggy-thingies
That strong dollar can't be helping revenues.
So much competition overseas.
Guess it's time to launder some narcotics money for the Bush cartel.
It's andecdotical, of course, but these two headlines show the trend:
2013: Gazprom and Caterpillar CEOs sign Memorandum of Cooperation.
2015: Gazprom expands import substitutions from pro-sanctions countries.
Remember, these were real sales of tangible products.
First, I personally warned Oberhelman that he should resign and fire his board of governors roughly 3 years ago. I emailed him and told him to find younger board members that were capable of understanding the Global markets after 08. I also accused him of following in the footsteps of Dick
Fuld and the Lehman Bros. debacle. Clearly, I was right about Oberhelman and CATshit stock tanking into Chapter 11. CAT-turds won't soon show anything but investor revolt for Oberhelman's head on a silver platter.
NOTE: Short the fuck out of CATstock-turds and watch Obeee squirm
bwahahahahahahahahahahahahahahahahah