Caterpillar machinery sales to retailers fall in July

Caterpillar Inc., the world's largest maker of construction equipment, said declines in sales of machinery to its retailers accelerated in July, signaling continued weakness in demand.

Machinery sales for the three months through July fell 48 percent from a year earlier, compared with declines of 47 percent in the period ending in June and 43 percent in May, Peoria-based Caterpillar said in a regulatory filing.

The global recession and credit crunch have slashed demand for heavy equipment, such as backhoes and dump trucks, causing Caterpillar's second-quarter profit to tumble 66 percent to $371 million. Sales in the period fell 41 percent to $7.98 billion.

Engine sales to retailers and equipment manufacturers for the July period fell 33 percent, an acceleration from drops of 32 percent in June and 21 percent in May.

Caterpillar rose 22 cents to $45.39 at 9:51 a.m. in New York Stock Exchange composite trading. The shares gained 1.1 percent this year before today.