Caterpillar (CAT) Stock Slumps Today on Weaker February Sales Data
NEW YORK (TheStreet) -- Shares of Caterpillar (CAT) - Get Report are down 1.82% to $79.85 in afternoon trading today after the company said global sales fell more than 10% this February compared to a year ago.
Global total machines sales, resource industries sales, and construction industries sales all fell by 11%, 12%, and 11% respectively, year over year, for the three-month rolling period ending in February, according to a Form 8-K filed today.
Total machine sales fell 2% in North America and more than 10% in every other geographic region for the same period. The resource industries segment sales fell everywhere except Asia/Pacific, which posted a gain of 37%. Resource industries sales in the Europe, Africa and Middle East region fell 42%, and North American sales were down 7%.
Construction industries sales in Latin America led losses with a 40% decline year over year, while North America construction industries sales fell by just 1%.
Peoria, IL-based Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
Insight from TheStreet's Research Team:
The Street's Jim Cramer mentioned Caterpillar in his Mad Money Lightning Round Tuesday evening. "I don't like it. It's down so much it's not worth selling, but they are not hitting the numbers," Cramer said.
Additionally, RealMoney.com contributor Ed Ponsi recently wrote about Caterpillar. Here's a snippet of what he had to say:
The U.S. Dollar Index (DXY) opened the fourth quarter at 85.91. At the start of the first quarter, the index traded at 90.26. Yesterday, it closed at 95.96 (C), the dollar's highest peak since 2003 [DXY is currently up 1.5% to 99.29]
That's bad news for companies like Proctor and Gamble (PG) - Get Report, Caterpillar and other names that rely heavily on overseas sales.
- Ed Ponsi, 'Dollar Chart Ominous for CAT, P&G' originally published 3/5/2015 on RealMoneypro.com.
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Separately, TheStreet Ratings team rates CATERPILLAR INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CATERPILLAR INC (CAT) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins." You can view the full analysis from the report here: CAT Ratings Report