Caterpillar retail sales drop 12% in first three months of the year
World’s number one heavy equipment manufacturer Caterpillar (NYSE:CAT) logged Thursday retail machines sales results for the first three month of the year, which were down 12% compared to the same period of 2015, making it the 41 straight month of sales declines.
Energy and transportation led the drop, down 34%. Resources industries sales followed close, recording a 28% fall, while sales to the construction industries were down 7% in the period.
With sales and operations at the ends of the earth, few companies are in a better position to take the pulse of the global economy and the resource sector in particular than Caterpillar.
The Peoria, Illinois-based firm has been hit hard by the decline in mining and construction — global sales are down more than $20 billion from its peak just four years ago after a drop of over $8 billion last year.
Caterpillar, which has taken dramatic cost-cutting measures in the last three years, has said it expects another 10% decline in revenue in 2016 to around $42 billion, but executives still can’t predict a bottom for the industry.
CAT shares were down 1.7% to $69.37 in New York at 11:29 am ET. The $40 billion company’s stock is up 2% this year though.