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March sales of construction excavators in China look ugly, plunging 47% Y//Y to 23.3K units,...

March sales of construction excavators in China look ugly, plunging 47% Y//Y to 23.3K units, with Caterpillar (CAT) sales off 51%. The numbers may not bode well for CAT Q1 earnings (report date 4/25), or the DJIA, over which the stock has a large influence.
Comments (5)
  • Stone Fox Capital
    , contributor
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    nice spin. March sales were 200% higher than 2H '11 monthly avg. Why not mention both?
    10 Apr 2012, 03:18 PM Reply Like
  • Noreika
    , contributor
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    That's why I like reading the comments too Stone. Thanks.
    10 Apr 2012, 03:26 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
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    "The excavator market should start to look better soon, as year-ago comparisons start reflecting softer market conditions last year in China."

     

    So comparing to last year's weak H2 numbers and calling that good isn't spin? China's H2 won't cut it for CAT and other firms dependent on continued years of double-digit growth from that country.
    10 Apr 2012, 03:30 PM Reply Like
  • Conventional Wisdumb
    , contributor
    Comments (1802) | Send Message
     
    Here's the whole paragraph from the story. Draw your own conclusions:

     

    "March sales of construction excavators in China plunge 47% to 23,248 units, against tough year-ago sales that were a record at 44,150 units. Caterpillar’s excavator sales last month were down 51%, leaving it with a 5.3% share of the market. But the excavator market should start to look better soon, as year-ago comparisons start reflecting softer market conditions last year in China. The monthly average in 2H of 2011 was just 8,450 excavators, William Blair says. “We should start to see some real growth in the summer,” firm adds."

     

    Suggests to me that CAT won't be able to rely upon robust purchasing from China to support the y/y comparables and it appears that it will mean lower overall calendar year sales as well from this source. Don't know how much impact that has on CAT's total book.
    10 Apr 2012, 04:05 PM Reply Like
  • Insurance Bull
    , contributor
    Comments (357) | Send Message
     
    Look for Bucyrus to provide a surprising boost to revenues.
    10 Apr 2012, 06:05 PM Reply Like
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