Equipment sales up again

World: Half—year results from a group of 12 US and European construction and mining equipment manufacturers showed a +24.3% rise in revenues compared to the first half of 2004. Operating profits increased +39.3% giving the group an average profit margin of 10%, compared to 8.9% in the same period last year.

The group comprising Astec Industries, Atlas Copco (Construction &Mining Technique), Bucyrus, Caterpillar, CNH (construction equipment only), Gehl, Ingersoll—Rand (Compact Vehicle and Construction divisions), Manitowoc Crane Group, Metso Minerals, Sandvik Mining &Construction, Terex and Volvo Construction Equipment had sales of US$ 30.25 billion in the first two quarters of 2005, and operating profits of US$ 3.02 billion. More than half the total revenues and profit — US$ 16.57 billion and US$ 1.78 billion respectively — were achieved by Caterpillar.

The biggest increase in revenues — +59.3% — was achieved by Atlas Copco, thanks largely to its acquisition of Ingersoll—Rand's Drilling Solutions division at the start of the third quarter last year. Gehl achieved the largest acquisition—free revenue growth, with a +42.8% rise to sales of US$ 250 million.

Bucyrus had the best increase in operating profits, with a +146.2% improvement taking its margin to an above average 13% of sales. Only Ingersoll—Rand's Compact Vehicle (including Bobcat) and Construction Technologies divisions were more profitable, achieving a combined margin of 14.7%. The lowest operating margins were recorded by Astec Industries (5.2% of sales) CNH's Construction equipment division (5.3%).