The world’s number one heavy equipment manufacturer has been hit hard by the decline in mining and construction – sales are down more than $20 billion from its peak just four years ago after a drop of over $8 billion last year.
And things are only getting worse in 2016. Much worse.
After a flicker of hope in January when the rate of decline seemed to slow at least in some regions, Caterpillar’s latest sales figures released show a renewed slump in the sector.
Sales to the mining industry make up 19% of total sales for the Peoria, Illinois-based giant (quarrying and aggregates account for another 10%) and worldwide sales to the sector dropped 42% in February on a rolling 3-month average basis.
Overall sales have been falling for 39 months straight. Earlier this week Caterpillar warned of a 40% fall in revenues for the first quarter, again led by lower sales into the resources industry.
With the release of its full-year earning in January, Chairman and CEO Doug Oberhelman, said the company has not seen any signs of improvement and was reluctant to predict a bottom for the industry