Caterpillar Posts Record 48 Consecutive Months Of Declining Retail Sales

Tyler Durden's picture

While Caterpillar's CEO may have resigned recently, admitting that he misjudged the business strategy, and even the company issued a press release cautioning the market may have gotten ahead of itself, CAT  stock does not appear to be bothered, soaring by 12% since the Trump presidential victory, and continues to trade near 2016 highs on hopes an infrastructure push would make excavators great again. For now, however, the woes at the heavy industrial manufacturer continue, with yet another month of declining global sales, the company's 48th in a row.

To be sure, there was a glimmer of hope for CAT coming out of Asia, where retail sales continued the rebound after posting positive gains in the August, September, and October, rising 12% last month, the biggest annual gain since September 2012, however the November gains moderated fractionally to 11%. This however was offset by continuing - and sharper - declines in North America, the EAME and Latin Ameica regions, which declined by 19%, 25%, and 32%, worse than last month's declines of 16%, 14% and 24%, respectively.

But it was on a global blended basis, that the ongoing problems facing CAT refuse to go away, and where we can see that the company has not reported a single monthly uptick in sales for record 48 consecutive months, or 4 straight years, a period which is now 2.5x longer than the far more acute 19 month drop observed during the post-financial crisis period.

Meanwhile, the stock continues to levitate higher, unanchored by any fundamental considerations.


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NugginFuts's picture

This is a screaming red light to....


Looney's picture


Caterpillar has been going through an amazing metamorphosis – from a good company to a piece of shit.   ;-)


JungleCat's picture

The internet revolution made demand for their products drop.

John Harwood said so on CNBC, and I trust him.

bamawatson's picture

live at time of this post BREXIT hearings mz may's testimony

there will be NO EXIT !

USisCorrupt's picture

Rudy Giuliani BLOWS Pizzagate WIDE OPEN, Today Dec 20th !

This is HUGE!

Offthebeach's picture

Green Shoots Obama said shovel ready jobs. Get 'Merican folk digging like 1880's. Lots o jobs. That's why everything is so buff and parole nuckleheads and brothers have been so employed the last 5 years.

Equipment costs labor jobs. So tough on Cat.

( krugman off )

silverer's picture

If this keeps up, they'll need to keep a few of their machines handy to dig their own grave.

jpcdo028's picture

They financial engineered their earning and it is a piece of shit.

MFL5591's picture

Yes, a 17% loss in sales is great news, buy the stock should double.  Afterall, FB sells nothing!

yogibear's picture

Central banks are determined to normalize 100 PEs as being cheap. Central banksters must print 100s of trillions more
All is awesome!

Bam_Man's picture

Or how about the pig-of-all-pigs, IBM?

Misses lowered top- and bottom-line estimates EVERY quarter, yet the stock is at a 52-week high - up more than 40% from its February low.

Total madness.


ebworthen's picture

For a company that doesn't make or do anything anymore - beyond belief.

Seasmoke's picture

Nobody cares. It's been a great 4 years for Obama and The Dow. Who needs CAT ??

moorewasthebestbond's picture

Dead cat bounce meet dead CAT splat!

Yen Cross's picture

 You Gals are bunch of pikers. You should be buying  BAC and BNI  >joking<

hendrik1730's picture

The higher the PE goes, the higher the stock prices! New economics ..... must be Putin ( the conspirator ), Yellen ( the "bankster" )  and Keynes ( the "economist" ) effects combined. Wonder how deep the crash will be in 2017.

quasi_verbatim's picture

 Liquidate, break into pieces and lose the toxic name.

Grandad Grumps's picture

Units or dollars? Dollars obviously. How does it look after material and currency adjustments? Or, how are unit sales?

Kayman's picture

Cat units are comparable only by individual categories.  From tiny skidsteers at 7000 pounds to D11 bulldozers at 250,000 pounds plus.

The used inventory is enormous and most of it can't be moved to new markets because of the cost of disassembly and shipping.

bpj's picture

Califronia diesel emission regs also make it really espensive to move earth.

Automatic Choke's picture

they should just use vw clean diesel technology.

Aubiekong's picture

Duh, I don't know anybody who eats caterpillars. Gross!

thismarketisrigged's picture

when u have central banks buying ur stawk among every other dow stawk, who gives a shit about ur earnings

yogibear's picture

Earnings, smirnings. Old ways. Jus do it and buy stocks with Central banksters backstopping their buddies.

yogibear's picture

The higher the loses for stocks the higher they go. Everything is awesome.

two hoots's picture

CAT is an old world company and the modern competitive world can now make equally good products.  Like everything else global, workers included,  stuff will be more equalized.  It can't be stopped without bringing on something much worse.   US must innovate and make the best products (not just say they are the best) in the world to keep an edge.  It will be a hard task given the high numbers of those choosing not to participate anchoring themselves to the system like mistletoe. 

Snaffew's picture

with steel prices surging along with the expected uptick in the cost of labor, how will CAT make a profit even if demand does pick up a bit---in 2018?  Keep this great American Icon afloat---didn't they once make buggy whips?

hotrod's picture

Obama has done it.  Full employment, no inflation, stock market best ever, healthcare for everyone and housing market boom.  No president has ever left such a wonderful environment. How come the DNC lost?

Snaffew's picture

Obama to open his magic show at the Mirage in Las Vegas---he signed a 2 year deal and he'll have Michelle as his sidekick running around as the prop girl dressed in tribal wear with a bone through her nose.  Obama is evidently a wonderful magician---Copperfield---eat your heart out!

bpj's picture

In So Cal, I was in the operating engineers and you chased conctracts not employers. You could always tell a recovery was under way when the surveyors were scarce in the union hall. Also, seeing lo-boys hauling heavy equipment was a positive sign. Haven't seen it for years, the scale of the 1980s run was massive with Cal-Trans having to hire temps to help with the wide load permits, not so anymore.

NoWayJose's picture

Headline - January 11, 2013 - Caterpillar opens two new factories in China.

And that my friends - was 48 months ago...

mainstream media is useless's picture

Headline-January 20, 2017:


Caterpillar has record 49th straight month over month sales decline.

Sorry_about_Dresden's picture

Right before I moved to Athens, GA, when I was there right before wife signe employment contract at UGA, I met two CAT project engineers who where starting up the billion dollar production plant CAT built near Athens.

Both were from UK, one British and one Irish, both had worked, apprenticed, for CAT while they were getting engineering undergrad.

They were complaining about the quality of the labor force, how unskilled the employees were unable to assemble even one mini excavator per day. They were really shocked at the poor work ethic, and inability to teach the workers anything.

They built this huge plant and then commodities deflation hit, wonder if they will ever be viable? 


peippe's picture

Wait til you see how red Trump's face will turn when he has to deal with Caterpillar & their plan to move 

production to India for cost savings. 

Lobster red.  : )