CNH Global N.V. last week posted an 8-percent net sales increase for the year ended Dec. 31, 2012. Net sales for the year jumped to $19.4 billion as solid global demand for agricultural equipment more than offset the negative effects of the more difficult trading conditions in the construction equipment segment and foreign currency translation.

Equipment Operations posted an operating profit of $1.7 billion, or 8.6 percent of net sales for the year, as increased volumes and positive net pricing in both segments compensated for a 24-percent increase in selling, general and administrative expenditures, and research and development expense, primarily related to significant investments in new products and Tier 4 engine emissions compliance programs.

Equipment net sales in 2012 were 81 percent agricultural equipment and 19 percent construction equipment. Equipment Operations generated $979 million in cash flow from operations for the full year, down $118 million or 11 percent from 2011, as the increased net working capital needed to support increased business activity more than offset improved net sales and operating performance. Full-year capital expenditures totaled $556 million, a 36-percent increase from 2011, largely as a result of investments in new manufacturing sites and product launches in both the agricultural and construction equipment segments. Capital expenditures on new product development (inclusive of interim and final Tier 4 emission-compliant equipment) and production capacity represented 61 percent of the total CAPEX spent during the year.

Full-year net income, before restructuring and exceptional items, was $1.2 billion, an increase of 28 percent, driven by continued solid market conditions in the agricultural sector, satisfactory industrial performance, and improved results by the Group’s financial services business, offsetting the increased costs of research and development and the negative currency translation in the period. This resulted in the Group generating diluted earnings per share of $4.83 (before restructuring and exceptional items), up 26 percent compared to $3.82 per share for the full year 2011.

CNH’s construction equipment full-year 2012 net sales increased 2 percent on a constant currency basis to $3.8 billion as modest industry recovery in North America and Eastern Europe did not offset the continued demand slowdown in the other geographic regions. In response to the demand downturn, finished goods production in the fourth quarter was curtailed to reduce company and dealer inventory levels to the prevailing market conditions, which contributed to the $6 million operating loss for the year.

Net sales in the fourth quarter grew 3 percent to $4.9 billion from $4.7 billion in the same period a year ago. Profit from equipment operations in the quarter grew 18 percent to $280 million from $238 million in the fourth quarter of 2011.

CNH’s worldwide construction equipment market share was in line with the market, with gains in Latin America. CNH’s worldwide production of construction equipment was 21percent below retail sales during the quarter, as the group continued to balance inventory levels, as anticipated during the year, in line with the forecasted worldwide demand levels in 2013.

Full year net income attributable to CNH Financial Services increased 34 percent to $301 million compared with $225 million in 2011. Increased results were primarily because of a higher average portfolio, lower general and administrative expenses and a lower provision for credit losses, partially offset by narrower financial margins. As of Dec. 31, 2012, delinquent receivables greater than 30 days past due were 1.2 percent of the total managed receivables, down from 2.0 percent on Dec. 31, 2011.

Headquartered in Burr Ridge, Ill., CNH Global N.V. is a world leader in the agricultural and construction equipment businesses. CNH incorporates the Case and New Holland brands.