CNH, makers of the Case Construction and New Holland equipment brands, saw revenues rise to $8.9 billion, up 0.9 percent from the second quarter of 2013. Profit was up 10 percent to $358 million.
In its earnings report, the company noted $30 million in restructuring expenses, up $10 million from the second quarter of 2013. The company says that total is related “in part to construction equipment” due to a decision to close its Calhoun, Georgia, assembly plant which manufactures the M Series dozers that Case Construction Equipment announced in 2013.
Without restructuring and other costs, CNH says profit would have been $382 million, an increase of 14 percent year-over-year.
The company’s Industrial Activities business, which contains its construction equipment, ag equipment, commercial vehicles and powertrain segments, saw operating profit fall 1.2 percent to $678 million in the second quarter as sales fell in each segment except powertrain.
Construction equipment sales fell 0.9 percent during the quarter to $931 million. Despite the decrease in sales, operating profit in the segment rose 15 percent to $28 million.
The company’s agriculture equipment division, by far its largest sales generator, saw sales dip 2.3 percent year-over-year for the quarter to $4.4 billion. Ag operating profit fell 14 percent to $632 million.
Commercial vehicle sales fell 0.5 percent to $2.7 billion with an operating loss of $21 million. That’s down 10 percent from the second quarter of 2013.
As the lone segment with a gain in revenue, powertrain sales rose 13.6 percent to $1.25 billion with a 10-percent increase in operating profit to $64 million.
Looking forward, the company says its forecast for the year remains the same as when announced on May 8. The company expects equipment sales of $32 billion during 2014 with operating profit for all of its equipment segments falling between $2.1 billion and $2.2 billion.