CNH: Construction Equipment Demand to Continue Recovery

CNH Global reported for the full-year 2011, net sales increased 25% to $18.1 billion as agricultural equipment markets continue to perform well across the group’s geographical portfolio, and as a result of the continued recovery in the construction equipment market segment.

In its 2012 full year market outlook the company said demand in the agricultural and construction equipment markets is expected to remain positive for 2012. Agricultural equipment demand is projected to be flat to up 5% on the back of firm agricultural commodity prices and construction equipment demand is expected to continue its recovery with industry unit sales expected to be up 15 to 20%.

CNH said its CNH Financial Services unit fourth quarter and full year net income was $66 million and $225 million, respectively, up from $28 million or 136% and $159 million or 42% compared to the same periods in 2010. The company said results were higher due to improved financial margins and a lower provision for credit losses, partially offset by a higher annual effective tax rate.

At December 31, 2011, delinquent receivables greater than 30 days past due were 2.0%, down from 5.2% at December 31, 2010, CNH said.

CNH’s on-book asset portfolio of $ 14,636 million at year-end was up from $14,274 or 3% compared to the end of 2010. Managed assets of $17,089 million were up 1% compared to $16,996 million at the previous year-end.

To read the full CNH Global news release: click here.