What On Earth Is Going On With Caterpillar Sales?

Tyler Durden's picture

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.


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DaddyO's picture

This must be the result of all those shovel ready jobs we heard so much about...


Manthong's picture

Caterpillar sales..

slowing to a crawl.

mtl4's picture

Cat sales clearly aren't going to gain traction anytime soon either.

Manthong's picture

They would have to move heaven and earth to boost sales in this Central Bankrupt economy.

jbvtme's picture

who are their competitors and how are they doing?

NoDebt's picture

Calling it a depression is UNSAVORY.

Manthong's picture

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.


NoDebt's picture

Rule #1:  When you're in a hole, stop digging.

Took Red Pill's picture

Its not a recession or depression; its a cocoon

DutchR's picture

And it's not going to morph into a beautiful butterfly either.

Fahque Imuhnutjahb's picture

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?

Shocker's picture

The chart aboce pretty much says it all. We are so far from a recovery

Layoff List: http://www.dailyjobcuts.com



Theosebes Goodfellow's picture

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.

mtndds's picture

This article is racist.  Sorry it probably has nothing to do with the article but I felt like saying it.

DutchR's picture

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

Victor von Doom's picture

Racist? I would have called it anti-Semitic for going against the MSM line.


Tapeworm's picture

Cocoons are moths. Butterflies are from a chrysalis.

Shake the economy and a bunch of clothes moths emerge.

Took Red Pill's picture

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. "


Fahque Imuhnutjahb's picture

Yeah, but there could be bitcoins down there!!

HardlyZero's picture

OK.  Sales in the ditch...

Bunghole's picture

Tier 4 diesel emissions standards.


The death of affordable heavy equipment.

SmittyinLA's picture

Not just death of affordable equipment, scrapping of billions in useful equipment and forced purchase of new equipment.

Bullish for natural gas retrofit folks.

ElectroGravitic's picture

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.



August's picture

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. 


tmosley's picture

Yeah, it's a bitter pill.

Mostly Harmless's picture

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!   

justdues's picture

Wow Arnold that looks like a complete bloodbath for them too

Mentaliusanything's picture

Komatsu company information was awful, God damned awful. Cat are doing OK by that standard

So many negative waves Moriarity

fockewulf190's picture

That 33 month decline graph looks way too even to me. Those results just broadcast manipulation.

Tyrone Shoelaces's picture

Yeah, but that dosen't mean we can push them around.

Bunghole's picture

Looks like CAT has already seen the boom and sales are in the bucket.

Deathrips's picture

Will the recall of exploding seats and faulty on board computers bolster the sales metrics?






whotookmyalias's picture

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.

Deathrips's picture

Stock buyback is securing the collateral value of which loans were made...me thinks.



Divine Wind's picture




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

jcdenton's picture

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)


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 ..


Normalcy Bias's picture

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...

gonetogalt's picture

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.

cynicalskeptic's picture

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.


Scooby Dooby Doo's picture

Everyone is finding real value in Doosan.

TheDanimal's picture

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.

TheDanimal's picture

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.

Jumbotron's picture

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.

XAU XAG's picture
What On Earth Is Going On With Caterpillar Sales?


Not much EARTH want's shifting!

SillySalesmanQuestion's picture

"Perhaps CAT should come up with a new economic term to describe the true state of global manufacturing."