More on Caterpillar's (CAT) Q3 earnings: CAT confirms it's tough out there. FY2012 outlook is...

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youngman442002 Comments (4982)
 
he CEO is on CNBC right now....he is always positive...Mr Cheerleader...its sounds a little fake to me...
22 Oct 2012, 08:08 AM Reply Like

GaltMachine Comments (925)
 
"Cat dealers have lowered order rates to well below end-user demand ."

How does that make sense?

They are not selling to end-users that want their equipment?

Have they overloaded the channel with inventory?

I read it literally so I apologize if I don't understand the context.
22 Oct 2012, 08:36 AM Reply Like

BruceInKY Comments (295)
 
Perhaps dealers are cutting their credit exposure and or taking profit out of their businesses by reducing inventory. Suggests caution and/or pessimism about local conditions on a global scale.
22 Oct 2012, 08:51 AM Reply Like

Lakeaffect Comments (694)
 
Cat dealers are on the front line of the business. They react to what their customers are telling them, and what they're seeing in the end user market. Right now, that means to reduce inventory on the lot and on order with the factory.

Longer term this is good for the manufacturer, as when business conditions normalize, dealers will restock their inventory. That event usually has a springboard effect for the manufacturer.

The pertinent question is when does the de-stocking cycle end? These can go for an agonizingly long time.
22 Oct 2012, 10:42 AM Reply Like

chopchop0 Comments (1667)
 
I wish I got in this AM at 82.XX. both CMI and CAT are popping big now
22 Oct 2012, 11:10 AM Reply Like