CHICAGO (Reuters) - Caterpillar Inc (CAT.N: Quote, Profile, Research), which makes diesel engines that power the biggest trucks on the highway, said on Friday the North American trucking market is going through a downturn that may be the worst in more than 50 years.
Speaking on a conference call to discuss its third-quarter results, Doug Oberhelman, Caterpillar group president with responsibility for engines, said the market for those engines in North America was the softest he has seen in his career.
"We're experiencing the worst market ... probably since World War II," Oberhelman said. "Those of you who saw September net orders of 11,000 trucks in the industry would recognize that. That's the lowest I can remember in a long, long time."
Oberhelman said softness in the general economy was hitting shippers, and would continue to hurt engine and truck makers.
"GDP growth will drive freight tonnage," he said, "And freight tonnage is dropping both in rail and truck. And we see that continuing frankly right into spring.
"We won't know until spring or early summer where freight tonnage is going to land. We're worried about it. Certainly the winter is going to be slow for truck and truck engine production."
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