Any minute now…
Just like with the fabled Abenomics recovery which is said to be just around the corner, so Caterpillar, whose stock has discounted a Phoenix-like rise from the ashes, continues to disappoint month after month, with no actual pick up in sales, and as was just released moments ago, in February the heavy industrial equipment maker posted the 15th consecutive decline in global retail sales, which declined 8% from February of 2013, which in turn was a 13% decline from 2012.
The only silver lining in the data set was the tiniest of Y/Y increases for North American sales, which saw a 2% increase, up from 1% in January. However, this was more than offset by tumble in Latin American sales, which declined 16% compared to last year, far worse than the 11% drop seen in January, and the worst print for the continent since February 2010.
Finally, broken down by segment, while both Power Systems and Construction Industries machines posted global sales increases of 2% and 9%, respectively, it was the ongoing collapse in the company’s bread and butter, Resource Industries, that tumbled by 37% in February, confirming the commodity glut is truly crushing CAT which is unable to increase its sell through into this all important product vertical. It also means any hopes for an Australian commodity boom and/or decoupling from China, will be very short lived indeed.
