Caterpillar Feels COVID-19 Pinch: Retail Machine Sales Tank

The fact that Caterpillar (NYSE: CAT) will feel the pinch of the COVID-19 pandemic and the resulting lockdowns and halt in global manufacturing activity isn't news anymore. But the real question worrying investors is how big the impact could be.

The answer lies in Caterpillar's latest machinery sales numbers. There's a clear emerging trend: decelerating demand and sales for Caterpillar's machines. Wait, that's an understatement. I went back and checked Caterpillar's financials, and the company last reported anything close to such a big drop in early 2016. A bigger drop occurred only in early 2010. Yes, 2010.

Every month, Caterpillar releases data on its global retail machinery sales for the previous three-month rolling period. From an investor viewpoint, it's a great practice, as the numbers give an idea about two key things: (1) how the company is faring on an ongoing basis and (2) the economy's health, as Caterpillar is widely considered an economy bellwether for several key sectors, including mining, construction, energy, and transportation.

Source Fool.com