CNH Announces 2Q Results Up 33%

CNH Global announced that net sales for the quarter ended June 30, 2013 increased 9% to $5.5 billion. CNH’s agricultural equipment second quarter net sales increased 13% driven by increased volume, positive net pricing, and favorable product mix.

All of the group’s geographic regions except APAC reported increased revenue. Operating profit increased by $140 million to $647 million yielding an operating margin of 14.3%, up 1.7% compared to the second quarter of 2012.

Equipment Operations posted an operating profit of $659 million or 12% of net sales for the quarter, as increased volumes and positive net pricing in the agricultural equipment segment more than compensated for the reduction in volume in the construction equipment segment, higher selling, general and administrative expenditures and higher research and development expenses.

Equipment net sales in the quarter comprised 83% agricultural equipment and 17% construction equipment.

The geographic distribution of net sales in the quarter was 43% North America, 32% EAME & CIS, 17% Latin America, and 8% APAC markets.

CNH worldwide production of agricultural equipment was 7% above retail sales in the quarter in anticipation of scheduled maintenance and repair downtime scheduled for the third quarter in NAFTA and EAME.