CNH Industrial N.V.

Ag Equipment Overcomes Construction Sag, Carrying CNH to 9% Q2 Sales Increase

CNH Global N.V., parent to the Case and New Holland construction-equipment brands, recorded net sales for the second quarter of 2013 up 9 percent to $5.5 billion.

Net sales of the company's agricultural equipment rose 13 percent to $4.5 billion, while construction-equipment net sales fell 6 percent to $939 million.

Operating profit on the agricultural-equipment side increased by $140 million to $647 million
yielding an operating margin of 14.3 percent, up 1.7 percentage points compared to the second quarter of 2012. Operating profit in CNH's construction-equipment sector was $12 million for the quarter as the company continued to manage inventory levels matching production volume to retail demand, deployed production efficiency initiatives and improved price recovery.

Overall, Equipment Operations’ operating profit of $659 million represented a margin of 12 percent, and second-quarter diluted earnings (before restructuring and exceptional items) rose 31 percent to $1.93 per share.

CNH Second Quarter 2013 Net Sales Increase 9% to $5.5 Billion

Equipment net sales in the quarter were 83 agricultural equipment and 17 percent construction equipment. The geographic distribution of net sales was:

  • 43 percent North America
  • 32 percent Europe, Africa, the Middle East and the Confederation of Independent States
  • 17 percent Latin America
  • 8 percent Asia/Pacific markets

2013 Full-Year Market Outlook

  • Ag-equipment unit volume expected to be up 5 percent
  • Construction-equipment unit volume expected to be flat to down 5 percent

CNH Guidance For The Full Year 2013

  • Revenues up about 5 percent
  • Operating margin between 8.5 and 9.0 percent