CNH Global N.V. announced financial results for the second quarter ended June 30, 2013. Total net sales increased 9 percent, to $5.5 billion. Construction equipment net sales decreased 6 percent, to $939 million from $1.001 billion in 2012.
Equipment operations reported a profit of $659 million, or 12 percent of net sales for the quarter, up from $524 million in 2012. The company attributes this to increased volumes and positive net pricing in the agricultural equipment segment compensating for the reduction in volume in the construction equipment segment, as well as higher selling, general and administrative expenditures and higher research and development expense.
Equipment net sales for the quarter comprised 83 percent agricultural equipment and 17 percent construction equipment.
CNH’s construction equipment operating profit was $12 million for the quarter, down from $5 million in 2012.
For the year, the company expects its construction equipment unit volume to be flat to down 5 percent, with agricultural equipment up approximately 5 percent.