Business Context and Reporting Period
This Form 8-K, filed on April 23, 2018, by Caterpillar Inc. (Caterpillar), provides supplemental Regulation FD disclosure regarding retail sales statistics. The report covers the rolling three-month periods ended January, February, and March 2018, comparing these figures to the same periods in the prior year. The data focuses on retail sales of machines to end users and retail sales of power systems to end users and Original Equipment Manufacturers (OEMs).
Key Financial Metrics and Sales Trends
The filing presents retail sales trends in constant dollars based on dealer reports. It does not contain audited financial statements, revenue totals, profit figures, cash flow, margins, debt, or liquidity metrics.
Machine Retail Sales (vs. Prior Year)
- Total Machines (March 2018): Up 26% globally.
- Resource Industries (March 2018): Up 50% globally, with North America leading at 68% and Latin America at 61%.
- Construction Industries (March 2018): Up 21% globally, with Asia/Pacific at 29% and North America at 20%.
- Regional Performance (March 2018): Asia/Pacific (Up 31%), Latin America (Up 34%), North America (Up 27%), and EAME (Up 15%).
Energy & Transportation Retail Sales (vs. Prior Year)
- Total (March 2018): Up 21%.
- Oil & Gas: Up 43%.
- Power Gen: Up 18%.
- Industrial: Up 1%.
- Transportation: Down 11%.
Material Changes Versus Prior Period
Global retail sales of machines showed consistent growth across all three months reported, with the strongest performance in Resource Industries. In March 2018, Resource Industries sales increased by 50% globally compared to the prior year, significantly outpacing Construction Industries, which grew by 21%. Within Energy & Transportation, the Oil & Gas sector saw a substantial 43% increase, while the Transportation sector experienced an 11% decline in March 2018.
Guidance, Outlook, Risks, and Unusual Items
Management Commentary: Caterpillar states that this information is intended to convey an approximate indication of trends and is not a substitute for audited financial statements. The company does not undertake to update or adjust prior period information.
Risks and Contingencies: The filing includes a comprehensive list of factors that could cause actual results to differ from forward-looking statements, including:
- Global and regional economic conditions and commodity price changes.
- Political risks, commercial instability, and international trade policies.
- Inventory management decisions by dealers and OEMs.
- Currency fluctuations and the impact of U.S. tax reform.
- Financial Products segment risks, including delinquencies and interest rate changes.
- Legal proceedings, environmental regulations, and cybersecurity threats.
Unusual Items: The filing notes that retail sales of longwall miners are excluded from the Resource Industries segment for the purposes of this report.
Important Facts for Investor Verification
- Data Source Limitations: The sales statistics are based on unaudited reports voluntarily provided by independent dealers and are not subject to Caterpillar's internal controls over financial reporting.
- Non-GAAP Nature: These figures represent retail sales trends, not GAAP revenue, and do not reflect the timing of Caterpillar's sales to dealers versus dealers' sales to end users.
- Segment Exclusions: Longwall miner sales are explicitly excluded from the Resource Industries data in this report.
- Forward-Looking Nature: The report contains forward-looking statements subject to significant risks, including trade policies and economic conditions, which are detailed in the company's Forms 10-Q and 10-K.