CNH Financial Q3 Earnings up 34% on Lower Charges
CNH Global announced net sales for the third quarter 2012 increased 5% (11% on a constant currency basis) to $4.8 billion as global demand for agricultural equipment remained solid, driven by high commodity prices offsetting the effects of a severe drought in North America.
CNH said strong agricultural equipment sales more than offset the reduction in sales of construction equipment due to challenging market conditions in most geographies and the negative effects of foreign currency translation.
Equipment net sales during the quarter were 83% agricultural equipment and 17% construction equipment.
In its 2012 full year market outlook, CNH said worldwide agricultural and construction equipment unit volume are each expected to be flat to down 5%.
CNH Financial Services third-quarter net income of $71 million was up 34% compared to last year’s third quarter of $53 million. CNH said improved results were due to lower provision for credit losses and a higher average portfolio, partially offset by a higher provision for income taxes.
At the end of the third quarter of 2012, delinquent receivables greater than 30 days past due were 1.3% of the total on-book portfolio, a decrease from 1.6% at the end of the second quarter of 2012.
On-book and managed asset portfolios at September 30, 2012 were $16.9 billion and $19.2 billion, respectively up from $15.0 billion (12.7%) and $17.6 billion (9.1%) for the same period-end 2011.
To read the CNH Global news release click here.