Caterpillar Retail Sales Rise Most In 54 Months

Tyler Durden's picture

Caterpillar's great depression ended three months ago, when in March following a record 51 consecutive months of annual declines, its global retail sales posted the first, if modest, monthly increase growing by 1% on the back of a surge in Chinese and other Asia/Pac sales. Since then the trend has accelerated, and in May the company reported that Asia Pac sales soared by 49%, the highest since April 2011, while maybe more notably, retail sales in the US rose by 2%, for the first time since May 2015.

The result is that CAT's global sales appear to have put the 4+ year depression in the read view mirror, and are slowly levitating higher, although like during the 2011/2012 downturn, it all depends on how "hard" China's economic slowdown will be over the coming year.

Finally broken down by component:

  • Power Gen: -10%, after down -2% in April
  • Industrial: +4%, after down -11%
  • Transportation: +9%, after down -3%
  • Oil & Gas: +13%, after down -2%

And while construction industries (thanks China housing) were broadly higher, up 11% in May, after rising 8% in April, resources - i.e., E&P and others, continue to languish, and were down 3% in May, which however was an improvement from the 19% drop in both March and April as commodity producers appear to be finally spending more on capex.

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ebworthen's picture

I think the FED decided to buy some heavy machinery.

Probably a giant lot somewhere in the desert with idle CAT machinery.  "Hold for J.Y." tags.

froze25's picture

Got to put all the Rapeugees somewhere, after all the Dems are fighting tooth and nail to make sure they continue to come here. While McCain (shit bag) and Paul Ryan (also a shit bag) do nothing and actually help them.

Sick Monkey's picture

That stuff is dear as gold. Payments are massive. Will take a least 2 years data to read trend.

MuffDiver69's picture

Nice. Back to doom and gloom now..,

ParkAveFlasher's picture

Repair that bridge, supersize that highway, replace that sewer, build that wall, WPA this economy

curbjob's picture

Bunker digging and emergency generator sales could also be viewed as bearish.

ParkAveFlasher's picture

You're completely upside-down?  Destruction is bullish for construction contracts.  Build, destroy, build, destroy.  Bullish bullish bullish.  Good machines are we.

StackShinyStuff's picture

Re do those buttons.  Dress that belt buckle.  Straighten that cap.  And goddammit tuck up those pajamas!

Silver Savior's picture

Museums must be buying them to teach how there used to be jobs and stuff using these machines lol.

BTW, don't we have enough heavy machinery just sitting around? I am sure there are a lot of good short sales of this stuff out there.

Just Another Vietnam Vet's picture

 Now we have  the chart that YELLIN was lookin at for the latest rate hike. 

adr's picture

So because of oil and gas.

I'm wondering if the raids of Caterpillar HQ were really just to confirm that they just weren't Non GAAPing enough. Did they get the OK to count future production as units sold and open up new fantasy avenues for sales?

I find it odd that they logged quarter after quarter of negative sales, get investigated and now they have sales increases?

Or is it that sales cratered to the point that sales of a few hundred tractors are enough to log a massive increase.

I am Jobe's picture

NON GAPPing , you shoudl check out Dell EMC Earnings. They are the king with huge losses and bullshit earnings call. Then again most of them are 

Hal n back's picture

if memory serves me correct, Dell paid 63 billion for EMC and its 2 billion of earnings.

Thats a lot of required synergy on the acquistion to be had.

I am Jobe's picture


Lots of jobs lost 

With Opiods , Drug Od, CAT is probably branching out used in Cemetaries for the dead and the upcoming deaths. Nice going CAT

CHX13's picture

That has got to be baerish... Good is bad...

wmbz's picture

China is getting ready to really start building! They have far too many ghost cities yet to build. 

Can a country the size of China ever have enough ghost cities?

Silver Savior's picture

They still have underwater cities to build. Underwater in more ways than one!

Too-Big-to-Bail's picture

Still too soon to say if Caterpillar is coming out of its cocoon -- The butterfly effect is still having its repercussions

Seasmoke's picture

The march to Dow 36,000 continues.  Upward Comrades. 

wmbz's picture

Correct! The sky is not the limit, not even the universe. "We" know no bounds!

Silver Savior's picture

Phuck the Dow. I want better returns in crypto currency.

GodHelpAmerica's picture

Building bridges to nowhere so the ghosts can get to their apartments.

ludwigvmises's picture

Trumpflation approaching self-sustaining momentum hopefully. Finally please make this country great again, we've had three decades of neocons and libfarts destroying the core of our economy.

Silver Savior's picture

Yeah hyper inflation is going to be great! Got gold/silver/crypto? 

afriend4u2's picture

I work in CAT's global information services and every day we are creating new accounts for new hires or returning laid off employees.  They are closing some of the antiquated problem facilities and moving production lines to other more efficient facilities.  The Aurora, IL plant is one example. The stock also pays a 3% dividend.

afriend4u2's picture

I work in CAT's global information services and every day we are creating new accounts for new hires or returning laid off employees.  They are closing some of the antiquated problem facilities and moving production lines to other more efficient facilities.  The Aurora, IL plant is one example. The stock also pays a 3% dividend.

Silver Savior's picture

So why is business picking up at the same time the economy is very sucky? Pent up demand? 

Sliced into ribbons's picture

One has to consider that perhaps the economy is not as sucky as you believe.

Sliced into ribbons's picture

I am going to deem your post as FAKE NEWS because it doesn't fit with my preconceived notion that we are in a global depression and soon we'll be feasting on corpses in the street and the living will envy the dead.

Snaffew's picture

is that in between shuffling revenues to tax shelters in Swiss subsidiaries and blatantly fudging numbers?  

Yellow Zookaninnie's picture

Asian OBOR construction spending obviously.

Silver Savior's picture

I get it now. Construction for new Asian gold vaults. The dumbass west is selling off all their gold to Asia. At least Asians know a good thing when they see it.

peterk's picture

seems to me  caterpillar is using some magic  accounting to up sales. Booking  inventory to dealers as  SALES and  accounts receivables

... accocunts that never get paid yet are booked, the magically  declared asa lodd to  rort a tax deduction.

Most probably ,  caterpillaer management  has some option of shares with much higher strikes than current    stock price levels.

Allways good to spruik up the shares, exercise those options before one leaves and has no control over the books.

ENRON 2.0  all over again imo.. time will tell

NoWayJose's picture

Uhhh, after years (literally) of showing losses on their books (for tax purposes), CAT has suddenly started showing profitable quarters. And all it took was an IRS raid on one of CAT's headquarters where they seized computers and records - likely indicating how CAT hid their real profits for nearly 5 years in order to avoid paying tax.

just the tip's picture

i missed the update of the fbi raid on their headquarters.  or was it the irs?

theprofromdover's picture

Nah, not credible.

I smell fish.

Bunga Bunga's picture

When you sell one bulldozers per quarter, another bulldozer is a 100% sales growth. Maybe The Donald sold the Sauds several as anti-riot gear.