CNH Q2 2013 construction equipment sales down 6%

1595 CNH recorded a 6% drop in its construction equipment sales revenue to US$939 million in the second quarter of 2013, compared to $1.001 billion sales revenue over the same period of 2012.

Operating profit from the Group’s construction equipment sales was $12 million in Q2 2013, down 29% from the $17 million achieved in Q2 2012 as CNH continued to match production levels to retail demand, while also deploying production efficiency initiatives and improved price recovery.

According to CNH, increased sales and pricing in the agricultural equipment segment during Q2 2013 ‘more than compensated’ for reduced sales of its construction equipment, under the 5895 New Holland Construction and 176 Case Construction Equipment brands, during what remains a tough global economic climate, contributing 83% of all Group equipment sales over the three-month period.

Overall, the value of CNH equipment sales between April 1 and June 30 2013 rose 9% to $5.478 billion, compared to $5.026 billion in Q2 2012. Combined agricultural and construction equipment operations’ operating profit in Q2 2013 rose 26% to $659 million from $524 million over the same stage the previous year.