CNH Global announced today that it saw sales increase 8 percent in 2012 to $19.4 billion — no thanks to construction equipment.
Construction equipment sales dipped 3 percent to $3.8 billion. Picking up the slack was agricultural equipment sales which were up 10 percent to $15.7 billion. The breakdown of net equipment sales finished at 81 percent agricultural and 19 percent construction. North America claimed 44 percent of those sales.
The company’s Equipment Operations division posted $1.7 billion in operating profit for 2012, or 8.6 percent of net sales. The division generated $979 million in 2012, down $118 million or 11 percent from 2011. Capital expenditures totaled $556 million, a 36% increase from 2011, mostly due to investments in new manufacturing sites and product launches in both agricultural and construction equipment.
Looking forward to 2013, CNH expects construction equipment to finish between flat and 5 percent. It forecasts agricultural equipment to be the same.