CNH third quarter construction sales rise

28 October 2011

Jim McCullough, head of CNH Construction.

Jim McCullough, head of CNH Construction.

CNH, the parent of Case and New Holland, reported a +36% year-on-year rise in net construction equipment sales in the third quarter to US$ 1 billion, while operating profit soared from US$ 4 million in the third quarter of 2010 to US$ 49 million this year.

The manufacturer said the positive results were down to demand for newly-launched products in the light and heavy equipment segments, together with positive pricing movements. This year has seen the company unveil new construction equipment that meets the requirements of the US Tier 4 Interim and EU Stage IIIB emissions regulations.

But Harold Boyanovsky, president and CEO of CNH, said the company was expecting to see demand soften next year. "Construction equipment will continue to grow but maybe not at the pace that we're seeing in 2011," he said.

CNH said this slowdown was primarily due to reduced activity in China and the Asia Pacific (APAC) region, where demand is dropping in comparison to its significant growth trajectory over the past three years.

Overall construction market sales in APAC markets grew +21% for light equipment and decreased -9% in the heavy segment in the third quarter, according to the company.

Globally, the manufacturer reported that construction equipment industry unit sales rose +15% in the third quarter compared to the third quarter of 2010, with light equipment up +28% and heavy equipment up +4%.

North American demand was seen to be up +36%, while markets in Europe, Middle East and Africa markets as well as CIS markets rose +29% as the industry continued to rebuild from the previous year's low levels.

In Latin America, CNH said the market was up +20% in the third quarter, driven by strong demand from projects in both the public and private sectors.

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