CNH Financial Q2 Earnings 50% Higher
Published August 1, 2012
Categories: Recent Earnings
CNH Global said second quarter net sales increased 3% to $5.0 billion as firm global demand for agricultural equipment, on the back of favorable agricultural commodity prices, compensated for a more mixed trading environment in the construction equipment sector.
CNH said net income attributable to financial services was $78 million for the quarter, compared with $52 million in the second quarter of 2011. Improved results were due to a higher average portfolio and lower provision for credit losses, partially offset by a higher provision for income taxes. At the end of the second quarter of 2012, delinquent receivables greater than 30 days past due were 1.6% of the total on-book portfolio, a decrease from 1.9% at the end of the first quarter of 2012.
Equipment net sales during the quarter were 80% agricultural equipment and 20% construction equipment, in line with last year. The geographical distribution of net sales in the quarter was 43% North America, 35%
EAME & CIS, 13% Latin America, and 9% APAC markets.
In its 2012 full year market outlook CNH said worldwide agricultural equipment and construction equipment unit volume is expected to be flat to down 5%.
To read the CNH Global news release click here.