Caterpillar’s Three-Month Global Sales Increase by 30 Percent
Caterpillar Inc. (CAT), the world’s largest manufacturer of mining, excavation, and construction equipment, is approaching 60 months straight of sales growth. Between October and December of 2016 alone, Cat saw increased gains of 30 percent in equipment sales.
There has been a substantial rise in global retail sales for the company. For 20 straight three-month reporting cycles — a five-year stretch — Cat has shown retail sales growth on every continent.
Cat Sales in North America Are Staggering
The greatest growth acceleration for Caterpillar occurred in North America, and the dramatic increase in U.S. and Canadian sales is not unexpected. Over the same period, there has been a substantial rise in almost every heavy-equipment-use industry on the continent, with the exception of the energy sectors: “In total, spending rose 4.5 times higher than year-end 2015 levels to nearly $1.2 trillion.”
The mining and construction industries in North America have been so bullish that Cat’s sales rose by 38 percent from September to October of 2016; in November, sales jumped another 41 percent over October’s increase, and — remarkably — finished 51 percent over November’s increase in December.
And it isn’t just the United States and Canada turning out huge profits for Caterpillar.
African, Middle-Eastern and Asian Sales Are Substantial
The strength of construction and mining industries throughout Africa, the Middle East and across Asia has turned into a windfall for Cat. Caterpillar sales in October and November of 2016 jumped 32 percent over previous months and another 18 percent in December.
Europe and Latin America Sales Progressing Slowly, Steadily
The least amount of growth occurred in Europe as the result of a softening economy and the fact that, “The mining sector seems to have hit the bottom.” Although there was a moderate growth of 10 percent in Europe’s construction industry, it was extremely moderate compared to most of the world.
Latin America also continues to work toward matching the global economic upturn in the mining and construction sectors, although Costa Rica and Brazil are exceptions.
Cat’s Leverage Every Liter Campaign, Low Gas Prices and Fuel Catalysts Keep Operations Costs Down
Rock-bottom fossil fuel prices are likely the driving force behind the red-hot, worldwide mining and construction economy. In these industries, lower fuel costs are clearly a boon. However, Cat’s Leverage Every Liter Campaign — and the fact that ultra-efficient fuel catalysts are quickly gaining popularity in the industries — means the momentum in the mining, excavation and construction sectors could last for some time.