Caterpillar May machine sales up 11 per cent

NEW YORK: Caterpillar Inc. said Friday its machine sales worldwide jumped 11 per cent in May compared with a year ago as a rebound in North American and Asian business markets helped offset declines in European sales.

Caterpillar is the world's largest maker of construction and mining equipment. Because its iconic yellow-and-black equipment is used in many different sectors all over the world, the company's sales are considered an indicator of global economic health.

In a filing with the Securities and Exchange Commission Thursday, the Peoria, Illinois, company said May sales were up in North America and the Asia Pacific, but fell in Europe, Africa and the Middle East regions.

Economists expect manufacturing to keep growing in North America and Asia for the rest of the year, but they don't think it will be as strong as in the first six months of 2010. Also, there are concerns about how Europe's debt crisis will affect that region's recovery and global trade. If the crisis worsens, is could depress economic activity further in a key US export market.

Caterpillar said North American machine sales jumped 15 per cent year-over-year, while sales in Asia surged 38 per cent. In the Europe, Africa and Middle East region sales fell 8 per cent in May, and dipped 2 per cent in Latin America.

Sales of reciprocating and turbine engines in the company's industrial segment jumped 17 per cent, while those in the electric power unit rose 4 per cent.

Sales of boat and ship engines were down the most of any category, at 27 per cent. Sales of engines for oil and gas customers fell 20 per cent.

Caterpillar shares rose 20 cents in morning trading to $65.15.