Mixed Results For Cummins, CNH, AGCO, Oshkosh Financials
A flurry of recent engine and engine-powered equipment quarterly reports reflect the muddled and geographically diverse market conditions the industry is currently experiencing.
Cummins said first quarter revenues of $3.9 billion decreased 12 percent from the first quarter of 2012. Revenues in North America declined by 15 percent and international revenues declined by 10 percent as Cummins said it experienced weaker demand in most major geographies and end markets. The company said the most significant decline in demand occurred within the Engine Business, with total unit volumes down 18 percent year-over-year. Shipments of high horsepower engines declined by 24 percent due to weakness in mining, oil and gas and power generation markets.
Based on the current forecast, Cummins said it expects full year revenues to be flat to down 5% and EBIT to be in the range of 13 to 14 percent of sales.
In reporting 5.7% better net sales compared to the first quarter of 2012, AGCO said North American tractor (unit) sales were up 13% and combines increased 52%. In South America unit sales of tractors increased 23% and combines 49%. In Europe however, tractor sales were down 5% and combine sales slipped 22%. AGCO said European sales were softest in the United Kingdom, Finland and Southern Europe while demand remained at higher levels in Germany and France.
CNH reported a 1% increase in net sales in the first quarter of 2013 vs. 2012. The company said agricultural equipment net sales grew 9% while construction equipment dropped 26%. The company said equipment net sales in the quarter comprised 84% agricultural equipment and 16% construction equipment. The geographic distribution of net sales in the quarter was 44% North America, 30% EAME & CIS, 19% Latin America, and 7% APAC markets. For the remainder of 2013, CNH is forecasting agricultural equipment unit volume is expected to be flat to down 5%, while construction equipment unit volume is expected to be down 5 to 10%.
Led by increased sales of its concrete-mixer trucks and aerial lifts used in the construction industry, Oshkosh Corp. said its second-quarter net income nearly doubled from a year ago. Oshkosh said it earned $85.4 million, up from $42.8 million, versus last year. However, overall sales fell 3.8% to $1.98 billion, with higher sales in the non-defense segments not being sufficient to offset the expected decline in defense segment sales.
Charles L. Szews, Oshkosh’s chief executive officer said, “our access equipment segment continued to benefit from replacement driven demand and improved pricing, while concrete placement product sales in the commercial segment reached the highest level of quarterly sales in nearly five years, benefitting mainly from improvements in the domestic housing market.
Oshkosh said access equipment sales increased 7.5%, defense sales dropped 16.2%, fire and emergency increased 3.3% and commercial sales (mostly concrete placement products) increased 10.6%.
The Manitowoc Co., Inc. reported sales of $898.0 million for the first quarter of 2013, an increase of 5.4 percent compared to sales of $851.9 million in the first quarter of 2012. The sales increase was primarily driven by a 7.8 percent increase in Crane segment sales.
First-quarter 2013 net sales in the Crane segment were $547.4 million, up 7.8 percent from $507.9 million in the first quarter of 2012, driven primarily by continued growth in the Americas region, as well as sustained demand in certain emerging markets muted by continuing weakness in Europe.
Crane segment backlog totaled $776 million as of March 31, 2013, an increase of $20 million from year-end 2012. First-quarter 2013 orders of $569 million were 16 percent lower than the first quarter of 2012, a metric that was anticipated given the timing of the bauma trade show.Edit Module