Dissapointing global sales for Caterpillar Inc (NYSE:CAT)

Posted by sara Frank September 23, 2013 0 Comment 1268 views

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.

Friday’s trading

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.

About sara Frank

Sara Frank is our chief congressional correspondent, Sara has covered the presidential campaign, Congress and congressional campaigns. Prior to that, she covered the U.S. House. Sarahas also worked covering the House, Senate and campaign finance. Among the numerous honors she has received for his reporting, Sara is the recipient of an Emmy Award from The National Academy of Television Arts and Sciences. She was also nominated four times for a national Cable Ace Award.

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