CNH Global’s net sales for 2010 increased 13 percent to $14.5 billion as a result of improved demand for agricultural equipment driven by increased prices in global agricultural commodities and construction equipment demand in the Americas and the rest-of-the-world markets. Equipment operations posted an operating profit of $889 million on higher volumes, increased industrial utilization in the Americas, and improved product mix.
The positive performance was tempered by low demand in Western European markets, increased raw material prices and new product launch costs in the construction equipment sector in the fourth quarter.
Global construction equipment industry unit sales jumped 35 percent in the fourth quarter compared with the previous year’s fourth quarter, with light equipment rising 36 percent and heavy equipment leaping 35 percent. North American demand rose 34 percent, and Western Europe jumped 21 percent. In Latin America, the market soared 53 percent. For the full year, net sales in construction equipment leapt 39 percent, with improvements in Latin America and Asia and considerable fleet replacement in North America. Operating profit for the year improved by $285 million year over year.
CNH expects the global agricultural market to be flat to up 5 percent in tractors, with a 5- to 10-percent growth in combines. In construction equipment, CNH expects an increase of between 8 to 12 percent in light equipment and 5 to 10 percent in heavy equipment.
Case New Holland is a majority-owned subsidiary of Fiat Industrial S.p.A.