This page has been archived and commenting is disabled.
What On Earth Is Going On With Caterpillar Sales?
We have been covering the ongoing collapse in global manufacturing as tracked by Caterpillar retail sales for so long that there is nothing much to add.
Below we show the latest monthly data from CAT which is once again in negative territory across the board, but more importantly, the global headline retail drop (down another 11% in August) has been contracting for 33 consecutive months! This is not a recession; in fact the nearly 3 year constant contraction - the longest negative stretch in company history - is beyond what most economists would deem a depression.
Perhaps CAT should come up with a new economic term to describe the true state of global manufacturing.
»
- 66317 reads
- Printer-friendly version
- Send to friend
- advertisements -
Ouch.
This must be the result of all those shovel ready jobs we heard so much about...
DaddyO
Caterpillar sales..
slowing to a crawl.
Cat sales clearly aren't going to gain traction anytime soon either.
They would have to move heaven and earth to boost sales in this Central Bankrupt economy.
who are their competitors and how are they doing?
http://www.komatsu.com/CompanyInfo/ir/
Calling it a depression is UNSAVORY.
The financial landscape of phony statistics and reporting has buried the truth of a thoroughly entrenched recession. It will take a lot to dig CAT and the rest of the globe out of this economic ditch and bulldoze the way out to growth again.
Rule #1: When you're in a hole, stop digging.
Its not a recession or depression; its a cocoon
And it's not going to morph into a beautiful butterfly either.
Infidels!
Surely this has nothing to do with stimulus measures pulling future demand into the present in a futile attempt
to paper over a financial debacle birthed on Wall Street and exported around the globe. The measures bought enough time
and distance from ground zero so that now the finger can be pointed elsewhere (China & Greece) as the impetus?
The chart aboce pretty much says it all. We are so far from a recovery
Layoff List: http://www.dailyjobcuts.com
-
Did folks really think that the Baltic Dry Index could crater and that Catepillar wouldn't get monkey-hammered by it? Even a two year old knows you need big Tonkas to move bulk items. If you aren't moving bulk items, no need for new Tonkas. Ouch indeed.
This article is racist. Sorry it probably has nothing to do with the article but I felt like saying it.
That's ok, eating only green leaves is kinda racist but here, try some Diet Racism to take the edge of, it's like Brawndo but differend: www.youtube.com/watch?v=xdyin6uipy4
Racist? I would have called it anti-Semitic for going against the MSM line.
Cocoons are moths. Butterflies are from a chrysalis.
Shake the economy and a bunch of clothes moths emerge.
From Scientific American;
"One day, the caterpillar stops eating, hangs upside down from a twig or leaf and spins itself a silky cocoon or molts into a shiny chrysalis. "
http://www.scientificamerican.com/article/caterpillar-butterfly-metamorp...
Yeah, but there could be bitcoins down there!!
OK. Sales in the ditch...
Tier 4 diesel emissions standards.
http://www3.epa.gov/otaq/nonroad-diesel.htm#info
The death of affordable heavy equipment.
Not just death of affordable equipment, scrapping of billions in useful equipment and forced purchase of new equipment.
Bullish for natural gas retrofit folks.
View SIRIUS The Movie about Disclosure of the viability of Stan Meyer type engine that consumes no petroleum and produces zero pollution.
Hey CAT get with the program or go out of business.
http://www.siriusdisclosure.com/
Worry not.
If the heavy equipment builders just suck it up and spend millions on lobbying efforts, and campaign contributions to inflential leaders, the regs can be adjusted.
Win-win!
Yeah, it's a bitter pill.
https://investor.deere.com/our-company/investors-relations/financial-inf...
http://www.bloomberg.com/research/stocks/snapshot/snapshot.asp?ticker=VO...
Good God! I opened their "Monthly Demand" PDF. If those negative numbers keep up, I think their small print at the bottom might come to pass:
All above figures are subject to change without notice. This site may be discontinued temporarily or totally
+1 for the link!
Thanks. Wow!?!
Wow Arnold that looks like a complete bloodbath for them too
Komatsu company information was awful, God damned awful. Cat are doing OK by that standard
So many negative waves Moriarity
That 33 month decline graph looks way too even to me. Those results just broadcast manipulation.
Yeah, but that dosen't mean we can push them around.
Looks like CAT has already seen the boom and sales are in the bucket.
Will the recall of exploding seats and faulty on board computers bolster the sales metrics?
Maybe...
RIPS
We all know the Fed is propping up the market with low interest rates and monetizing debt. We also know companies are wasting time and money with stock buy-backs to maximize short term share price at the expense of the long term business.
So we shouldn't be surprised with the reality. And the reality is that it would be very difficult to prop up Cat sales. Once you look behind the curtain, you shouldn't be surprised with the other things you see that were all just illusions.
Stock buyback is securing the collateral value of which loans were made...me thinks.
RIPS
Foreign capital is fleeing the EU and Asia seeking a stable place to land.
While the USD and US markets are themselves Cleveland Steamers, they are the most stable in comparison to others.
This inflow is causing a RISE in the USD.
This RISE in the USD is making U.S. products, such as heavy equipment from Caterpillar, more expensive to overseas buyers.
This, combined with the global slowdown, are the likely cause.
I wonder how Kubota and Komatsu et al are doing in comparison?
The solution: TRUMP in 2016
First, I must inquire if you are being satirical. If not, then are you out of your fucking mind!?!
If Trump has anyone sense, and he really wishes to play the role of politician, then he will be wise enough to get into contact with Amb. Leo Wanta at all haste. Wanta is not a politician. He is an engineer, a currency expert, and probably one of few competent economist on the planet. Save the Austrian, Wanta is of the classical school. However not one Austrian can claim to be a bonafide -- trillionaire. (x30+)
A solution? Let's just jump straight to Chapter 15 .. (WANTA-Book.pdf)
https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp
And if you then listen to just the 11 minute teaser, things are already well in play. Everything else you see is PSYOPs (Jim Sinclair's term, not mine.)
Got a superior idea, including Trump (less Wanta); then let's hear it. I seriously doubt Ichan can do any better. He neither has the funds or the expertise ..
There's more competition then ever for CAT. I was told by someone in the sales & service side of the heavy equipment/truck business that CAT equipment tends to be among the most expensive and repair intensive.
Anyone out there in the business that can confirm or deny this? Just curious...
I need to buy an excavator in the 20-25 ton range right now. Cat is about 15-20%more $ than a comparable machine. Same or more on parts. That said, many small guys will still buy new Cat for longer service life. New Cat here is Japan built.
I would buy a Georgia built Kobelco if I had the choice. Way simpler on the electronics. Hyundai, Daewoo can't stand up. Can't get Komatsu service/spares here.
If gold moves up a bit watch 'em fly off the shelves.
Just think about what heavy equipment sales could be if gold and silver prices weren't being suppressed with PAPER sales and sales of 'leased' physical.
You'd have the mining companies expanding and spending like mad to meet PHYSICAL demand.
Everyone is finding real value in Doosan.
Those jobs just used the old shovels. Probably didn't create too many new jobs either. Bet they just got some of the previously laid off folks enough employment time to be eligible for unemployment benefits again.
Those jobs just used the old shovels. Probably didn't create too many new jobs either. Bet they just got some of the previously laid off folks enough employment time to be eligible for unemployment benefits again.
This must be the result of all those shovel ready jobs we heard so much about...
That's the problem. All the jobs Obama created only require a shovel, not a backhoe.
Not much EARTH want's shifting!
"Perhaps CAT should come up with a new economic term to describe the true state of global manufacturing."
CATatonic
CATastrophic
CATaclysmic
No need to dig if you're selling PAPER gold and silver....
Its hard to sell a dozer when nobody can get credit to build a building nobody will visit.
Everything has been built...no need for a back-ho.
One ask's for money up front the other one, wait what....
About $20
A Front-ho is female, a Back-ho can be male or female.
Economic decoupling - Caterpillar just isn't needed to build iPhones, or sex-hookup websites.
Wealth growth is now unconstrained by physical limits.
Mud wrestling equipment ??? might be a dirty angle...
Laying pipe ?
Can I have some helicopter money please? I promise to buy a CAT backhoe.
sec 179 is about the best common folk can expect
Can't look at one company in a sector, you need to look at the whole sector. My guess is a major contributor to this decline is they're loosing market to competitors. CAT equipment is the benchmark but pricey.
Guess you didn't bother to check the Komatsu link above.
Guess I didn't since it was posted after my post asshole!
but if you'd only known, you would have informed yourself
More like Cat service and parts are the benchmark.
I was travelling in Tibet in 2013 and in Lhasa I saw literally thousands of excavators, bulldozers, cranes, etc. There were dozens of dealers with massive lots chock full of equipment. South Korea has been cranking out new models of heavy equipment as fast as new Kia models.
A global depression and cheaper alternatives from Asia.
Occam, FTW.
Does Harbor Freight have any ?
Yeah bruh, what - do you live under a rock?
http://www.harborfreight.com/towable-ride-on-trencher-62365.html
Maybe they should expand into military sales. Its the only growth industry left.
Hospitals are expanding. School districts are putting up new and tearing down old rather than maintain their buildings.
Mega-irresponsible.
Not when you can offload all the costs on the taxpayers.
Try to remember, "The children are our future!"
And, by that we mean we need new schools, higher salaries, and bigger pensions if you want us to continue producing the same sub-par educational results.
Plus, we need extra bathrooms for all those transgender students.
And, exactly why do muslims want to move to this depraved country?
<< Maybe they should expand into military sales. Its the only growth industry left. >>
... and EBT production:
Report: JP Morgan Makes Over Half A Billion Dollars Off Food Stampshttp://www.breitbart.com/big-government/2012/10/01/report-jp-morgan-make...
the coming dark age...
agriculture prostate ..
Don't worry we will need some of those big off the road vehicles to carry around our fiat money.
Caterpillar: Become whole again. I need to rest. You need to regain your human size. Grow up, Alice. Embrace the truth.
or...
Caterpillar: We're all vulnerable. Mix the wrong feelings together, the right kind of bad with the wrong kind of good, and you'll wind up with a total breakdown.
all "Alice in Wonderland"
Caterpiller sales rep: "Sales are merely in their cocoon phase right now; the longer this remains, the more beautiful the butterfly will be."
Do not let that person near your children.
We are in a depression and have been , but know one wants to admit it.
It will be, once the black messiah is out of office and it can be blamed on a republican.
building a case for stock buy back....ho
CAT expanded faster than the fictional Mickey Mouse market spread sheet hockey curve.
CAT isn't a part of this economic recovery. Look at San Francisco skyline...23 tower cranes building high rises and a new Salesforce tower. FANG is leading the way...their employees live in cities. CEO lives in mega mansions. This recovery does not involve urban sprawling and housing subdivisions. No strip malls...no malls...CAT not needed. Nothing to see here.
One word.
Mining
Thats where the big margins are, not some dinky backhoe for Joe Bobs Plumbing and Supply. Keep manipulating you stupid idiots.
Coal? x_x
Copper x_x
PMs x_x
CEOs say fuck digging a hole
If PM's would get a fucking bid maybe we would see CAT rise....
+1000
CAT is idling waiting to unload the bloated inventory on a new proxy war in Syria and Iran.
Holding on for the next false flag in the US.
It wont be long.
Not just Caterpillar, JCB in the UK
"Market conditions in the construction equipment sector have been difficult for some time, but they have worsened quite rapidly in recent weeks. The situation is not about to improve, certainly not in the short term, so we now need to take difficult but decisive actions to align overheads to lower sales forecasts. In the first six months of the year, the market in Russia has dropped by 70%, Brazil by 36% and China by 47%. Parts of Europe are also struggling, with France down by 26%."
Well, when you're done building that awesome sandcastle on the beach... you know what comes next...
Russia is going through a major expansion in the production of large farming machines. To cope with shortened harvest and planting season durations. You would think that would soak up some of the domestic (Russian) production of big construction gear.
I wonder who will pay-out the pensions Caterpillar promised.
Hmm....
Relative to the amount of infrastructure improvements required by the US to revitalize it, the US is doing almost nothing and instead is spending money on military and financial wastelands.
The US government could get rid of their 1000+ foreign bases and the 70ish ongoing international conflicts they initiated and concentrate on building a better world for you and me ... but they decide not to.
Why?
IMO, the ruler of this world wants conflict and death and so the adversary governments ALWAYS give the ruler what he wants.
I always considered this stock to be a pretty damned good indicator of whether the planet's economy was really expanding at a healthy rate. The month after month declines truly make a powerful statement.
CAT needs to get real. No money to be made by making things. Real money to be made trading money.
Why do you need to build new housing when all the new immigrants from Mexico and Central America along with all the refugees from war torn Africa and the Middle East are used to sleeping 50 people to a room.
When I was doing some construction, we traded in all of our Cat equipment for Komatsu. Major maintenance bills "plunged" , and the legacy maintenance bills on the Komatsu equipment soon looked like the chart on Cat sales, less than zero. So I looked for a at least sales chart on komatsu that is level or less than Cat.
Nope. Looks the same as Cat.
Maybe, perpetual growth and thus all stock evaluations, ain't so.
Kungfucious or Joe Dangerous stated: What cain't continue, won't.
Which is right up there with "it's deja vu happening again" and ipso facto ergo.
Here where I live new subdivisions are going in - stadiums too.
Komatsu is used for the subs. Not sure what they use for the stadium construction.
Here is your dollar vanishing.
CAT is a union shop?
Yes. At least in Peoria, IL where my wife is from.
I'll bet you've got a great wife ... and I'm not being sarcastic.
Well duh.
Don't you remember when it was all over the news that the janitors at Cat make $17.00 an hour?
Well, that was 20 or so years ago. Probably $65.00 now.
Komatsu quit reporting sales?
http://www.komatsu.com/CompanyInfo/ir/data/data07_y.html
And from viewing the link, they were going down pretty dramatically before the end of reporting.
Cocoon.
Koo Koo or just plain kooky.
What if i said i worked 7 days a week for 4 years, I joke u note. Boss a indian... No raise since either
You can always go back to school and get a degree in women's studies with student loans. What are you bitching about ? Opportunity abounds. This generation is just lazy. The boomers had it rough with their pensions and all .
Easy to explain.
Latin America (EM) spike caused by China's commodities demand spike; Asia spike caused by China's building of Ghost Cities, roads to nowhere, etc.; North America spike caused by shale oil, fraking, and tar sands; Rest of World by a combination of false demands caused by central banks.
Starting in 2013, they had all of the equipment they needed and due to the Chinese, EM, and oil price downturn since then they have even more than they need, all the end result of massive amounts of false demand caused by centrally planned monetary manipulation.
Renting the machines is cheaper.
And
All the machines being rented out are from the 1990s and still work.
Parts are cheap the only thing that breaks are the hydraulic hoses.
You have less people working then you did back in 1990s
So it makes sense that you have an over-supply of machines left over.
Look at an excavator from 1980-1990s, if you paint that thing and change the hoses every now and again, do you think it can break lol? these machines were made from steel 1"+ thick, as long as it gets a paint job it aint going anywhere.
Its not worth paying the storage fees for these machines if you own one, all the successful contractors hardly even have a warehouse anymore, why should you pay real-estate taxes and waste your sqft storage space on a machine that you can rent for 2-5000$ one shot finish the job and then not have to deal with it?
And if you are a rental company renting out machines, you sure as hell aren't going to go buy NEW machines to rent out because people are going to destroy them, + the new ones have more shit that can break on them, the old ones litterally amount to a diesel engine, a hydraulic pump, some hoses and a handful of relays.... almost nothing to break.
In order for Caterpillar to make money, all the old machines have to break, the economy has to "really" recover and demand for new machines has to rise... you have the exact opposite happening.
People want the old machines not the new ones.
Everyone is unemployed.
No new construction is really going on outside of New York and maybe 2 - 3 other locations.... the rest of the country is pretty much K.O. economically.
As far as the rest of the world, we all know the entire global economy is collapsing, all you have to do is look at emerging markets, billions of dollars wasted crippling ourselves to try and nation build in these shit - holes just to tap slave labor and behold global demand dropped and now we no longer have a need for all that slave labor.... so people are fleeing.
+
so to update,
if it,
floats,
flies,
fornicates,
front loads,
you're better off renting
Hmm. What to buy ? A back hoe. Or a Hoe on her back.
http://i.ytimg.com/vi/ojvBFzKDiyI/maxresdefault.jpg
Its salvageable lol , just flip it back itl still work..
Ummm - let's see -- CAT opens factories in China, giving China all their secrets. China, with a glut of excess steel opens their own factory giving that factory surplus steel, then orders all companies in China to buy from their new factory. Result - CAT sales fall! Amazing!
I assume that Komatsu and Chinese alternatives are cheaper around the world.
And, that Caterpillar and company only expand as the rate of growth increases in the US and worldwide. I doubt the US rate has increased for over ten years, and now the world rate - rate of increase - is probaby flat or negative.
QED
Never did understand why bulldozers would be a growth item in today's economy.
ZH is on about CAT sales a lot and tying their collapse in to a more general recession. The key factor omitted is how its competitors are doing. It could be that the total market is the same with CAT's competitors picking up the slack.
It could be that the total market is the same with CAT's competitors picking up the slack.
Or that the "total market" is shrinking and CAT's share isn't changing ... or maybe even increasing. We just don't know from this article. That's a glaring omission. Looks more like a marker than information.
Yep. Overcapacity and depressed commodities prices = decreased sales of high-margin mining equipment. The dilemma is that sales were so over-blown in the contrived boom of earlier this decade. Payback time, blowback time. Someday commodities will go back up, Until then, it is what it is.
Maybe they make stuff that nobody uses anymore.
UN Agenda 21 is kicking in, build city skyscrapers and bulldoze the suburbs.
You should look at crane sales.
All contruction growth was in China (artifical but there) Once China saw how much $$ was spent on foreign contruction equipment they did what good communist do - copied it. So what is the 10th largest construction equipment manufacture in the world and who produces equipment that looks very familiar to CAT?? LiuGong their products include wheel loaders, bulldozers, skid steer loaders, forklifts, motor graders, excavators, rollers, truck mounted and crawler cranes, pavers, mini excavators, drilling machines, mining dump trucks, concrete equipment,
Shocker
Chink shit, not beta tested, poor metallurgy, piss poor engineering, suffers from inverse inflation, ie, built cheaper all the time to keep prices from rising...kinda like TP with a 2" roll...
You are wrong about generalizing everything from China.
The crap you buy from Walmart has nothing to do with the quality China CAN produce. But they can't produce that quality for the SAME PRICE as the crap you typically buy.
Walmart and others don't buy the BEST products they can from China. Their buyers go to China and say they want the best widget they can get for 5 cents per piece. Where the same top quality widget would cost 10 cents each. But that's NOT what the buyers want.
I never said that the knockoffs were quality. Umbrella's made in the USA used to last years (i think my grandfather still has one), now the chinese made POS fall apart in hours. But the original U.S. manufacturer is out of business.
Yep, this is because 95% of people WILL NOT pay for quality - they go straight for the cheapest price. OK then, don't comlain "they are shipping our jobs overseas". "They" are doing no such thing, the consumers are shipping their own jobs overseas via their purchasing decsions.
You vote with your dollars. Americans are voing themselves right out of good paying jobs.
"Recovery Summer"
- Slow Joe
that chart shows equipment testing
scooping,
piling
and now trenching,
oh yes, the coring drills comes next
What is it about this article that turned a seemingly decent bunch into outrageous punsters?
Their union made stuff is too expensive in a strong dollar world.... plain and simple. They will benefit greatly if one of the next QEs is roads and bridges.
Obama should order an accursed canal across the Rockies. THAT will need some heavy machinery to build!
right. high cost/strong dollar hurts. Chinese and other competitors improving quality all the time. new normal....
How's that "transwer of technology, jobs and capital to a cheaper liar competitor working out?
Go offshore, go Carly.
The Caterpillar is in the fucking Pupa stage, is all. Soon, it will become a Butterfly and sales will take off! Hope n Metamorphosis, muthafuckazz!
Mahindra sales up, copycat film at 11
Just another set of entrails (from a CAT!!!) to read to see what is *really* going on in China.
Mix metaphor ON: Looks like China and all the bowling pins in the alley linked to this ball have been getting knocked around for 33 months.
But but but China is growing 7% a year!!! That is a lot of BALL!! World: Baby needs a new set of bowling shoes...
Cat....was making more money with their Loans. They also recieved monies from the QE program. Cat has new tech that requires a computer to read faults and the updates go to dealerships not to the equipment buyers.
China uses poor steel, it will not hold up.....Hell even Cat paint changes color at a certain temperature.
Markups on parts , even when they purchase from another company can be 700% , Yes seven times after purchase is made thru a dealer. Cat can't get qualified personal service some of it's equipment so the end user has to pay the techs to learn on the job. Rumor was a few years ago they had 1000 3600 engine Blocks for Iraq that were never assembled but I bet the Amarican Military paid to break that contract. Again..... Government 1....Tax payer 0
Caterpiller is going down-for-the-count just like the whole of the Western World. This is what the world gets for pissing me off, motherfuckers. Furthermore, I even emailed Oberhelman about five years ago and told him to resign, and fire the Board of Governors of CAT, but the motherfucker was not bright enough to take the hint.
Note: If you fuck with me you will pay the price, and the price is your existence.
p.s. I never give second warnings.
Spoken as a true enlightened one ... before Copernicus. What do you have to say about global warming, or climate change, or whatever they're going to call that (natural and ineptly or fraudulently observed phenomenon) next?
'Global Warming', 'Climate Change', and 'Carbon Credits, is just the next Ponzi scheme that the one per cent hope to bamboozle the Western World with because the Oil Cartel has run up against the Law of Diminishing Returns. Further, without a new form of taxation every G U B B E R M E N T in the world will be heading into bankruptcy before you can say 'greed is good' or Alan Greenspan must have been R E T A R D E D. Like Radical Marijuana always says.... Biggest Bullies & FRAUD make the world go round. If we end the fraud the whole world winds up in the proverbial shitter.
I don't think I agree with anything RM says. But you are right-on my man. Actually I would make one change. If we end the fraud, the whole world "climbs out of" the proverbial shitter. We're already in it.
simple, the miners aren't mining materials for the BS-manipulated-too-low prices which means they're not buying buying Caterpiller equipment.
stop the BS trade of paper materials to get a real recovery.
Peoria isn't a hotbed for innovation. Those brown nosing floors of upper level management are getting their due. Look in the mirror boys, it's mostly on your shoulders.
Peoria isn't a hotbed for innovation.
So sales are down because Peoria isn't innovating. That suggests some other town is innovating the pants off Peoria. What is that town?
What On Earth Is Going On With Caterpillar Sales?
Good question - a better one is what is going on with sales of used US pick up trucks to ISIS.
What On Earth Is Going On With Caterpillar Sales?I think you should look at what's going on with Deere and Komatsu sales before drawing any conclusions.
I personally haven't done this. But I haven't made any assertions on the subject either. It's a glaring omission in your writing about your observation. Perhaps this is a "work in progress".
Every where I look I see new Deeres or Komatsus....Cat is too expensive.
With the really big contractors ... Cat's bread and butter ... not using Cat is too expensive.
Looks like all those backhoe loader ready jobs weren't so ready after all... Banack Omama