Reuters

(Reuters)

Caterpillar Says Machinery Sales Fell in August

Features Associated Press

Caterpillar (CAT) said Friday that sales of its heavy machinery fell 10 percent in August on weaker results outside of North America.

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The Peoria, Illinois, company said in a regulatory filing that dealer sales of construction equipment slipped 1 percent for the month, compared with the same month last year, and resource-industry equipment sales dropped 33 percent. Energy and transportation revenue rose 4 percent compared to August 2013.

The company said machinery sales improved 8 percent in North America but fell in other regions.

Caterpillar reported $13.39 billion in sales of machinery, energy and transportation equipment during the second quarter. That was down 4 percent from the year-ago quarter, and Caterpillar's total revenue fell 3 percent to $14.15 billion. Construction industry revenue rose 11 percent in the second quarter and resource industry and energy and transportation sales declined.

Jefferies & Co. analyst Stephen Volkmann said dealers may start eliminating inventory if sales don't pick up. He kept a "Hold" rating on Caterpillar stock with a price target of $95 per share.

"The ability of Caterpillar stock to continue to shrug off weak sales fundamentals remains an open question in our view," he wrote.

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Caterpillar Inc. shares lost $1.83 to close Friday at $102.51.