CNH sees +30 percent construction equipment sales rise
By Chris Sleight26 July 2011
CNH saw its sales of construction equipment rise +30% to US$ 1.03 billion in the second quarter of the year, compared to the same period last year. The division's operating profit almost doubled to US$ 25 million, but this left it with an operating margin of just 2.4%, up from 1.6% a year ago.
CNH said the global construction equipment market was up +24% in the second quarter, compared to the prior year, and it noted a recovery in the North American market, where demand rose +37%. The Europe, Africa, Middle East and CIS region saw demand climb +33%, while the Latin American market was up +27% and the Asia Pacific region grew +16%.
Like several other equipment manufacturers, CNH said it had experienced problems sourcing components from Japan in the second quarter of the year, and said this had a negative impact on its manufacturing and efficiency. However, it expects the situation to improve over the rest of the year.
CNH's total revenues for the quarter, including agricultural equipment and the sale of financial products, was up +24% to US$ 4.88 billion. The company made an operating profit of US$ 521 million, for an overall margin of 10.7%, compared to 8.4% a year ago.