Continued downward pressure on Asian miners caused a dip in retail sales for Caterpillar Inc. (NYSE:CAT) in the region.
The world’s biggest maker of construction and mining equipment reported that its Asia-Pacific region dealer sales fell in the period of March to May of this year, down 30 percent from the same period a year earlier, after falling 25 percent in the three months through April.
“We believe global numbers will need to show some improvement shortly in order to support the positive move in Caterpillar’s stock year-to-date,” Jefferies analyst Stephen Volkmann told Bloomberg.
Lower commodity prices have compelled mining companies to cut their spending.
Meanwhile, the Pretoria, Illinois-based company reported that its resource industry sector sales were down an average of 69 percent in Asia compared to the same period a year earlier.