CNH Global posted a net income before restructuring and exceptional items of $138 million or 57 cents per share in the first quarter of 2011, a dramatic increase compared with $38 million and 16 cents in the year-ago quarter. The results were much higher than the 43-cents-per-share analysts’ estimate.
Net sales of equipment, excluding revenue from Financial Services, was $3.8 billion, a 17-percent increase compared with the first quarter of 2010, with double-digit growth in both construction and agriculture. Consolidated revenue for the quarter, including finance and interest income jumped to $4.1 billion, compared with $3.5 billion in 2010.
Revenues from construction equipment were $726 million, up 19 percent from the year-ago quarter, with strong improvements in Latin America and Asia and improved market conditions in North America.
CNH expects strong demand for equipment in 2011, but said revenue may be negatively affected by about $300-$500 million and $40-$60 million in operating profit because of the earthquake in Japan, which is likely to negatively affect production during the next two quarters. The company still expects 10-percent revenue growth and operating margins of 7.1 percent to 7.9 percent.
CNH also said it will invest more than $100 million to build a new manufacturing facility in Argentina to produce advanced combines and tractors for the Latin American market.
CNH is based in Burr Ridge, Ill.