Retail sales of Caterpillar machines jump 12 percent

PEORIA — Retail sales of Caterpillar machines continued to climb in the first month of the third quarter, posting double-digit year-over-year growth overall and positive numbers in nearly all segments and regions.

Total machine sales worldwide for the three-month period ending in July rose 12 percent from the same time one year ago, according to figures the company filed Friday with the Securities and Exchange Commission.

According to the PJ Star, Caterpillar’s most recent earnings report and financial forecast for the rest of the year also reflect strengthened demand for its products. Sales and revenue in the second quarter jumped $1 billion over the same period the previous year, causing the company to significantly bump the 2017 sales projection — to a midpoint of $43 billion.

In 2016, Caterpillar recorded $38.5 billion in revenue, a decline of more than 40 percent from peak sales in 2012.

Construction equipment sales in China are exerting significant influence on the rebound. Retail sales of that type of machinery spiked 54 percent in the Asia/Pacific market for the three-month period ending in July, compared to the previous year.

Mining machinery sales had a bright spot, too. The rolling three-month retail sales report showed a 33 percent increase in Europe, Africa and the Middle East — a region where similar equipment sales were down 50 percent for the three-month period ending in May.

Caterpillar tallies the retail figures from unaudited reports provided by its network of independent dealers.

The company’s stock is trading at near record highs, closing up less than 1 percent Friday at $113.92 per share.

Matt Buedel can be reached at 686-3154 or [email protected]. Follow him on Twitter @JournoBuedel.