New Holland has reported second quarter income of $137 million (U.S.), up from $77 million in the same quarter last year.
Worldwide net revenues for all divisions for the second quarter were up 11.5 percent to $1.7 billion (U.S.), compared to $1.5 billion in 1996, due mainly to strong sales of agricultural equipment in North America, Brazil, Latin America, Africa and the Middle East, the company said last week. Consolidated net revenues for the first six months increased 9.5 percent to $3.2 billion, versus $2.9 billion in the first half of 1996.
“During the first half of the year, New Holland’s retail sales of agricultural tractors in North America grew at nearly twice the pace of the industry, with market share gains across all horsepower categories. Sales of our skid-steer loaders again outperformed the industry, and New Holland’s combine sales were up substantially, even though the North American market was down slightly,” said chief executive officer Umberto Quadrino.
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Net sales from equipment operations were $1.7 billion for the quarter, up 10 percent compared to $1.5 billion in 1996. Revenue growth was strongest in North America, up 36 percent compared to the second quarter last year, a period in which a concerted effort to reduce dealer inventory, coupled with limited availability of the company’s new products, depressed revenues.
On June 10 the company announced an agreement to acquire a substantial equity interest in Flexi-coil Ltd., the privately held manufacturer of air seeding equipment based in Saskatoon. The agreement is subject to several conditions, including regulatory approvals. The transaction is expected to be completed during the fourth quarter of 1997.
