Caterpillar Construction Equipment Sales Rise 6% in North America

Caterpillar reported weaker sales of construction equipment in all regions except North America for the first quarter of 2024.

Across all its segments, the equipment manufacturer reported total sales and revenue of $15.8 billion in Q1 of 2024, which was flat when compared year-over-year to Q1 of 2023.

The slim margin of difference was attributed to a slightly lower sales volume, offset by favorable price realization, including a geographic mix that was better than anticipated.

Dealers restocked in 2023, and by the fourth quarter, their inventories remained high. Caterpillar is waving the caution flag that as supply chain issues level out, the increased demand for machinery may be declining.

Caterpillar“We expect services to continue to grow in 2024, and we currently do not anticipate a significant change in dealer inventory of machines in 2024 compared to a $700 million increase in 2023,” said Jim Umpleby, Caterpillar chairman and CEO.

Changes in dealer inventory are anticipated to act as a headwind to construction industry sales for the remainder of 2024.

Overall, Caterpillar saw sales and revenue percentages decrease in two of its three primary global segments construction industries, resource industries, and energy and transportation.