Published on : Jun 23, 2014
The world’s largest manufacturer of mining and construction equipment, Caterpillar Inc, has reported a steep decline in its Asian retail sales of machines. This drop comes following a reduced spending trend among miners in Asia. According to the company, dealer sales recorded in the APAC region saw a 30% slide over three months till May 2014, in comparison with the same period in 2013. The company, based in Peoria, Illinois stated during a filing last week that its sales also saw a 25% slide in the three months until April.
Till April, 2013, the company’s sales through dealers were reported to have fallen 13%, whereas until May 2014, this fall was reported as being 12%. The dealer sales report of Caterpillar held more bad news for the construction machinery segment, where the APAC sales reported an 8% dip, after showing a 2% rise until April 2014. These sales were flat in regions such as North America, whereas they slowed down in Latin America. Elsewhere, in regions such as the Middle East, Europe, and Africa, these sales showed a decline, but at a slower pace.
A number of companies operating in the mining sector have shown reduced spending in the backdrop of lower commodity rates. In April 2014, Caterpillar had said that its sales of large mining trucks in the first quarter of 2014 were dismal, with an 80% drop after having peaked in 2012. Following the drop in earnings in 2013, the company has shut several factories and fired workers. The 2013 decline was the first since the global economic recession of 2008-09.