CNH Global reported sales of $4.6 billion for the first quarter of 2012, up 22 percent over last year. Operating profit was $406 million.
The company—with Case, New Holland and Kobelco brands—said sales were driven by firm commodity prices on the agricultural machinery side, and increased North American demand on the construction side. The breakdown in equipment sales for the quarter was 78 percent agriculture and 22 percent construction equipment.
First quarter 2012 net sales in the construction equipment sector grew 41 percent as a result of market improvements in every region and especially in North America, where sales more than doubled compared to the same period last year. Increased sales and production volumes led to an operating result of $34 million or 3.3 percent, up from a loss of $17 million for the first quarter 2011, as increased revenue, improved product pricing, and improved capacity utilization in North America and in Europe more than offset the negative currency effect of the Japanese Yen on purchased whole goods in the excavator product range.
Global construction equipment industry retail unit sales declined 6 percent in the first quarter compared to the prior year, as declining demand in China drove the APAC region down 24 percent. Light equipment global demand was up 12 percent, and heavy equipment demand declined 19 percent. The North American market registered a substantial year-over-year improvement with demand up 45 percent (light equipment volumes up 52 percent and heavy equipment up 30 percent).
CNH Construction Equipment Financials
- Net sales: $1.024 billion, up 41%
- Gross profit: $155 million, up 68.5%
- Operating profit: $34 million