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CNH Q3 2011 Results Reflect a 36% Increase in Construction Equipment Sales

October 28, 2011, 07:26 AM
Filed Under: Corporate Earnings

CNH Global N.V. announced financial results for the quarter ended September 30, 2011. For the quarter, net sales increased 30% (26% on a constant currency basis) to $4.6 billion as agricultural equipment markets continue to perform well across the Group's geographical portfolio and the construction equipment market continues its recovery. Equipment Operations posted an Operating Profit of $460 million as a result of this increased equipment demand (with resulting increases in industrial utilization) and improved net pricing.

Net equipment sales for the quarter were 77% from agricultural equipment and 23% from construction equipment. The geographical distribution of revenue for the period was 42% North America, 29% EAME & CIS, 17% Latin America, and 12% APAC markets.

Net income before restructuring and exceptional items for the quarter was $272 million as a result of improved top line and industrial operating performance, better results from the Group's unconsolidated subsidiaries and affiliates, and a lower comparable tax rate.

2011 Full Year Market Outlook Demand in the agricultural and construction equipment markets is expected to remain firm for the balance of 2011 on the back of a positive environment in agricultural commodity prices and the consequent increase in planting and farming income estimates.

Further, the environment for construction equipment continues to improve overall with the exception of the APAC region where the demand environment has begun to slow from its significant growth trajectory over the past 36 months.

FY 2011 World Wide Unit Growth Forecast Agricultural equipment demand up approximately 10% Construction equipment demand up 20-25%.

CNH re-affirmed the upper end of its full year 2011 guidance for revenue growth of 15-20% and operating margin of 7.1% to 7.9%.

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