CNH construction sales halved in 2009

CNH's construction equipment sales fell -52,5% in 2009 to US$ 2.12 billion, compared to US$ 4.46 billion in 2008. The business made an operating loss of US$ 339 million, compared to a profit of US$ 116 million in 2008, for a margin of -16%.

According to the company, the construction equipment industry declined -38% worldwide last year, with demand for light equipment dropping -45% and the heavy market falling -30%. CNH said it maintained its market share in North America and gained some ground in Latin America, but lost out in all other regions of the world.

As a company, CNH was supported by its agricultural equipment sales, which also fell in 2009, but stayed in profit. But although CNH as a whole made an operating profit of US$ 373 million on revenues of US$ 12.8 billion, restructuring charges and taxes saw a net loss of US$ 190 million recorded for the year.

The company remained cautious on the outlook for this year, with CNH president & CEO Harold Boyanovsky saying, "IN 2010 we will continue our focus on tight cash management and cost control. Given the lack of visibility of macro conditions, we will continue to exercise discipline in areas over which we have control."