Caterpillar sales fall 35%

Caterpillars sales decline slowed in December on improving demand in Asia, according to company figures released.
Caterpillar, said world-wide sales of its equipment declined 35% in the three-month period ended in December, compared to the same period a year earlier. That's a noticeable improvement from the three months ended in November and October, when machinery sales were down 45% and 50%, respectively.
Sales of Caterpillar machinery for all of 2009 fell 43% from 2008 to $18.1 billion because of the global economic recession and a pullback in spending on construction and mining. The slowdown was exacerbated by the company's decision to curtail sales to its dealers last year, allowing them to sell off $3.3 billion worth of new equipment languishing on their lots.

Caterpillar Chairman and Chief Executive Jim Owens said he's seeing a widespread upturn in demand for equipment, particularly in China. Asia-Pacific region sales for the three months ended in December were down 12% from a year earlier. But that's significantly better than in November, when Asia-Pacific sales were off 31%. "We are encouraged by signs of improving demand," said Mr Owens. "Dealer sales to end users are up, order rates are up, dealer inventories came down in 2009, and we're seeing stronger service parts sales. As a result we are focussed on increasing production levels in our plants and with our suppliers."dec
Sales in North America and Europe improved slightly, although remaining weak. North American sales fell 46% in December following a 54% decline in November.
Sales in Europe, Africa and the Middle East were down 41% in December following a 53% decline in November.
Lower engine sales in December were reported in all of Caterpillar's markets. Sales of engines to the truck and bus market, however, declined just 16% last month, as purchasing increased in advance of the new emissions standards on diesel engines in 2010 and the company's decision to exit the truck-engine market at the end of 2009.
Sales of engines to the petroleum industry slumped 46% in December, after being down 29% in November and 19% in October. Overall engine sales in 2009 declined 30% to $11.4 billion. Caterpillar's stock ended the regular session down 4.3%, or $2.41, at $53.44 a share. In after-hours trading, Caterpillar was recently down at $53.25 a share.