Caterpillar Inc. said Monday that global retail sales of its construction and mining machinery rose 30% in the three months to the end of November, as growth continued to slow in Latin America, offsetting strong sales expansion in North America.

The November period was the 19th straight three-month period of sales growth for the world's largest seller of bulldozers, excavators and wheel loaders. But the growth has been moderating in recent months because of tougher year-ago comparison figures and softening economic conditions throughout the world.

"All of this fits with our view that the industrial recovery continues despite [macroeconomic] worries," said Stephen Volkmann, an analyst with Jefferies & Co., in a note to investors. "Caterpillar's results are likely to be better than expected."

Dealer-reported sales climbed 31% from a year earlier for each of the two reporting periods to the end of October and September, respectively. Caterpillar's monthly sales figures do not include sales from the company's recently completed purchase of mining equipment maker Bucyrus International.

The sales drop-off has been most pronounced in Latin America. November-period sales from the region rose 8% from a year ago, but that's down from the 16% increase logged for the October period and a 33% increase in the September period. Latin America had been one of Caterpillar's best-performing geographic markets as construction activity and mining expansions in developing countries such as Brazil drove demand for equipment. But Brazil's economy lately has slowed to a standstill.

Sales in Europe, Africa and the Middle East were up 32% in the November period, the same increase logged in the October period, while September-period sales were up 41%. Europe's ongoing debt crisis is widely expected to choke off economic expansion on the continent as companies and consumers reel in their spending.

In North America—Caterpillar's largest market—sales rose 41% period, up from a 38% increase in the October period and a 26% increase in the September period. While commercial and residential construction activity in the U.S. remains weak, Caterpillar's sales growth in the region has been robust lately because of dealers buying equipment for their rental businesses and customers replacing worn-out machinery.

In Asia, sales rose 31% in the three months through the end of November, compared with a 33% increase and a 27% increase in the October and September periods, respectively.

Asia sales recovered faster than other regions coming out of the 2008 recession, as investments in infrastructure construction and mining in China, Australia and other developing economies fueled demand for Caterpillar's machinery. But China's attempts to fight inflation, along with sales and production disruptions in Japan following the March earthquake, have cooled Caterpillar's Asian sales growth in recent months.

In Caterpillar's engine business, overall sales rose 15% in the November period, compared with a 13% increase in the October period and a 12% increase in the September period. Sales of marine engines continued to struggle, falling 24% in the November period, after dropping 12% in the October period and slipping 1% in the September period. Sales of engines for generating electric power rose 16% in the November period, following a 6% increase in the October period and a 2% increase in the September period.

Engines sales for industrial uses slowed, rising 6% in the November period, after climbing 13% in the October period and increasing 17% in the September period. (By BOB TITA )

Source:cmbol.com