zerohedge.com / by Tyler Durden / Feb 17, 2017 9:31 AM
As Caterpillar’s stock hits multi year highs, its operations continue to sink.
With sellside firms suggesting that CAT should be valued on 2018, and in some case 2019 results, Caterpillar shareholders have been happy to comply with the recent euphoria, sending the stock soaring 18% since the Trump presidential victory, and back to multi-year highs on hopes a Trump’s infrastructure push would make excavators great again, coupled with expectations that an infrastructure push out of China will result in a rebound in the company’s profits. For now, however, operational woes at the heavy industrial manufacturer continue, with yet another month of declining global sales.
To be sure, there was a glimmer of hope for CAT out of Asia, where retail sales continued the rebound after posting positive gains in the prior five month, surging 26% in January, the biggest annual gain since July 2012. This however was offset by continuing declines in North America, the EAME and Latin America regions, which declined by 8%, 13%, and 29%, although all regions posted a modest rebound from December Y/Y numbers.