CNH construction revenues fall
By Chris Sleight02 August 2012
CNH's second quarter sales of construction equipment were down -2.8% on the same period last year, at US$ 1.0 billion. The division's operating profit fell -32% to US$ 17 million, for an operating margin of just 1.7%. CNH markets construction equipment under the Case, New Holland and Kobelco brands.
The company said it had seen flat market conditions in North America compared to the start of the year, while conditions were challenging in Europe and Brazil. CNH added that currency effects also had a negative impact. Without these, it said revenues would have been up +4% to about US$ 1.07 billion.
Despite this weak growth, the company said its market share increased in the second quarter, thanks to gains in the light equipment sector in Europe, Africa, the Middle East, CIS and Asia-Pacific. It also said it gained ground in the North American heavy equipment market.
Including agricultural equipment sales, the company's revenues increased +3.0% compared to Q2 2011, to SU$ 5.03 billion. It made an operating profit of US$ 524 million - level with 2011 - which gave it a margin of 10.4%