Global machinery company Caterpillar, Inc. (CAT) filed an 8K with the SEC announcing some pricing actions that hike prices worldwide. From the release:
“Caterpillar is announcing price action of 0 – 3% worldwide on most machines. This price change will be effective January 2012.
In addition, emissions-related price increases of 2-6% will also apply in January for applicable products and regions.
This price change is a result of current industry factors as well as general economic conditions. Details by product will be released to dealers in the near future, and will vary across geographic regions and products.”
This is a surprising announcement given the rapid decline in commodity prices in the past several months and an earnings warning from Ingersoll-Rand (IR) announced just today. This pricing news suggests that global economic conditions are not yet recessionary.