CAT Construction and Mining Equipment Slowed Throughout The World

Sales of Caterpillar Inc.'s (CAT) construction and mining equipment slowed throughout the world, rising 6% in the three months to the end of September. It was the 28th-straight three-month period of retail-sales expansion for the world's largest seller of bulldozers, excavators and wheel loaders. But the growth rate decelerated across all of Caterpillar's geographic markets during the September period, as tougher year-earlier comparisons and deteriorating economic conditions, particularly in Europe and Latin America, put pressure on sales. World-wide dealer-reported machinery sales rose 13% and 14% from a year earlier for the three months ended in August and July, respectively. Caterpillar's Asia Pacific sales rose 14% in September after a 27% increase during the August period and a 28% increase during the July period. Caterpillar's sales in China have been slumping for months, but the slowdown in demand appears to be spreading to the rest of the Asian market. Sales growth in North America, the Peoria, Ill., company's largest geographic market, slowed from recent months as well. September-period sales increased 16%, following a 24% increase in August and a 25% increase in July. North America has been a pillar of strength for the company, as equipment users replaced worn-out machinery. Caterpillar dealers also have benefited from rising equipment demand from the energy sector. Caterpillar is a major supplier of equipment to western Canada's oil-sands industry. Sales in Latin America continued to struggle in the midst of tough economic conditions. Caterpillar's September-period sales from the region were down 3% from a year earlier, after falling 5% during August and declining 2% in July. Sales growth in Europe, Africa and the Middle East also remained challenging, reflecting the broad economic weakness in Europe. September sales were down 3%, after being flat in August and down 1% in July. Caterpillar's engine business weakened as well. Overall engine sales dropped 1% in September, following a 3% increase during the August period and a 4% increase in July. Engine sales to the transportation industry, which includes engines for ships and railroad locomotives, dropped 3% in September, following a 9% increase for August and an 11% increase in July. Industrial engine sales dropped 16% in September, the same rate of decline logged during the August period. Industrial engine sales fell 19% during July. Sales of engines for generating electric power slipped 2% in September, improving from a 3% decline during August and a 6% decrease during July. Engine sales to the petroleum industry, a bright spot lately for the engine business, grew 8% in September, following a 14% increase during August and 20% surge during July. Caterpillar's stock opened down 1.5% at $85.28 a share. Source: foxbusiness