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CNH’s Q1 Net Sales Increase 22%; Construction Net Sales Up 41%

April 25, 2012, 06:30 AM
Filed Under: Construction

CNH Global announced financial results for the quarter ended March 31, 2012. For the quarter, net sales increased 22% (25% on a constant currency basis) to $4.6 billion as a result of solid trading conditions for agricultural machinery and construction equipment (driven largely by increased demand in the Americas). Equipment Operations posted an Operating Profit of $406 million as a result of higher revenues, increased industrial utilization, improved product mix, and improved net pricing.

Net income before restructuring and exceptional items for the quarter was $269 million as a result of strong top line and industrial operating performance, and a lower tax rate.
The breakdown of net equipment sales in the quarter was 78% agricultural equipment and 22% construction equipment. The geographical distribution of net sales in the quarter was 45% North America, 31% EAME & CIS, 15% Latin America, and 9% APAC markets.
CNH Construction Equipment First Quarter Results

First quarter 2012 net sales in the construction equipment sector grew 41% (44% on a constant currency basis) as a result of market improvements in every region and especially in North America, where sales more than doubled compared to the same period last year.
CNH Agricultural Equipment First Quarter Results
CNH's net sales in the agricultural equipment sector increased 18% for the quarter (20% on a constant currency basis) driven by solid equipment demand resulting in mix and share improvements in every region but APAC. North American demand was heavily influenced by an earlier than normal planting season due to warmer climatic conditions in the mid-west United States.

2012 Full Year Market Outlook Worldwide
Agricultural and construction equipment markets are expected to remain positive for 2012, with agricultural equipment retail unit demand projected to be flat to up 5% on the back of firm agricultural commodity prices. Construction equipment demand is expected to continue its recovery with industry retail unit sales expected to be up 5 to 10%.

To read the full press release, click here.

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