Dissapointing global sales for Caterpillar Inc (NYSE:CAT)
On Friday, Caterpillar Inc (NYSE:CAT) reported that over the past quarter, there was a weakening in its global sales. The company is the largest mining and construction equipment maker in the world. It said that sales has dropped by 10% since the same period a year ago, in the quarter that ended 31 August. There was also a 6% dip in “power system” or engines sales while machinery sales dropped by 9% and there was no change in the sales of engines from a year earlier.
In the past few years, the company had experienced good sales from engines that were used in the petroleum industry. These too, experienced a 21% drop in the latest quarter. There was a 7% rise in industrial engines and a 5% rise in electric-power engines sales.
More sales statistics
Engines used in the petroleum industry, a source of strength in recent years, were particularly weak in the latest three months, falling 21%. Industrial engines were up 7% and electric-power engines rose 5%.In the Asia-pacific region, there was a 30% drop in machinery sales and a 12% drop in the Middle East, Europe and Africa. Latin American machinery sales were seen dipping by 3% while there was a 1% rise in sales in North America.
In Friday’s trading, Caterpillar Inc (NYSE:CAT) dropped by 3.42%. The opening price of the shares was $87.61 which climbed to an intraday high of $87.65 and dipped to close at $84.75. Approximately 13.45 million shares were traded in Friday’s trading. An average volume of 5.37 million shares were traded over 30 days. The 52-week high of the shares was $79.49 while the 52-week low was $99.70. The company has a market capitalization of $54.89 billion.
About the company
Caterpillar Inc (NYSE:CAT) manufactures mining and construction equipment, diesel natural gas and diesel engines, diesel-electric locomotives and industrial gas-turbines. It operates in 2 business segments: 1) Machinery and Power Systems and 2) Financial Products.