Caterpillar 1Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$CAT Earnings Call Notes

[in China] “March on the other hand was better…And while that’s a move in the right direction and we are encouraged by it, it’s probably still a little too soon to call it a trend”

“we had expected that…we’d begin to see some improvement [in mining] as 2013 unfolded. Unfortunately, that hasn’t happened. Overall, mining orders have remained depressed. As a result we’ve significantly reduced our expectation for mining sales in 2013.”

“I am sure we will, in the course of the next couple of months get a lot of questions about what does this mean for 2014. And that’s a really hard question to answer at this juncture. I mean certainly we don’t have an outlook for 2014 so we are not going to…go out with new assumptions…about that today. And what I would caution everybody that…if we go back a year ago and we put ourselves in April of 2012, whatever predictions we made a year ago about 2013, the market has certainly changes since then. It may change between now and the end of the year, it may not. It’s just too soon, I think, to make a call on 2014.”

“I still firmly believe long term…we’ll view our moves into mining…as really changing our company for the better.”

“customers are using the equipment that’s out there and they are repairing the equipment that’s out there. It’s not a great economic climate but it’s good enough to keep commodity production going.”

“In my time I have not seen this. I mean the reduction in the purchase of new equipment is substantially more than certainly the decline in commodity consumption would suggest.”

“this is the from [’97] probably the fourth or fifth major cycle for this company. And I would like to think as kind of negative and perverse as it is, we are getting pretty good at it. And while I don’t like a three-year cycle…If that’s what we are living with, we are going to learn how to manage it.”

[In China] “Inventory is down to a point where — not quite yet, but probably in the next month or so it’ll be getting to a level where we’re not looking to take it down more and so then the production will come back. So I think most of the increase in China production is because we’re getting to the end of the inventory decline or hopefully anyway over the next quarter.”