CNH Global posted a net sales increase of 30 percent to $4.6 billion as agricultural equipment markets continue to perform well and construction equipment markets continued their recovery. Operating profit of $460 million was a result of increased equipment demand, increases in industrial utilization and improved net pricing.
Net equipment sales for the quarter were 77 percent from agricultural equipment and 23 percent from construction units. The geographical distribution was 42 percent North America; 29 percent from Europe, Africa, Middle East and Russia; 17 percent Latin America and 12 percent from Asia Pacific and China.
CNH re-affirmed the upper end of its full-year 2011 guidance for revenue growth of 15 to 20 percent and operating margin of 7.1 to 7.9 percent.
Third-quarter 2011 net sales in the construction equipment sector grew 36 percent as a result of general market improvement. Operating profit improved significantly from $4 million in the third quarter of 2010 to $49 million this year with greater demand for newly launched products in the light and heavy equipment segments, increased industrial utilization and positive comparative pricing. The majority of the Japan-sourced components-related issues were resolved during the quarter, enabling CNH’s dealer networks to meet customer demand.
During the third quarter, Case Construction launched its new CX470C crawler excavator in the 40-ton class on the European and North American markets, while New Holland Construction introduced its 37-ton E385C crawler excavator on the European market. Both machines meet the requirements of Tier 4A/Stage IIIB emission regulations.
CNH Global is based in Burr Ridge, Ill.
