The Industry Is Still Full Steam AheadCED Magazine June 2006
Article Date: 06-01-2006
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Manufacturers report double-digit growth.
The construction equipment industry has continued its upward trend through first-quarter 2006.
Among the more positive reports, Caterpillar reported a 48-percent increase in first-quarter profit per share, as well as a 13-percent increase in first-quarter sales and revenues. Sales and revenues increased $1,053 billion from the same period a year ago.
First quarter sales for Volvo Construction Equipment increased 30 percent and earnings increased - 49 percent compared to the same period in 2005. According to Volvo, in the first quarter of 2006, the total world market for construction equipment within the company's product range increased 6 percent.
Gehl reported net sales increased 12 percent in the first quarter. And the company reported record first-quarter income of $6.4 million, compared with $4.9 million in 2005. Operating profit was $11.3 million, or 9.2 percent of net sales, compared to $8.4 million, or 7.7 percent of net sales, in first-quarter 2006.
Also in double digits, Ingersoll Rand reported a 19-percent increase in earnings per share and a 10-percent increase in revenue. For the first quarter, the company's net earnings were $253.2 million.
CNH Global reported first-quarter 2006 net income of $43 million, compared to net income of $15 million in the first quarter of 2005. Net sales of construction equipment were approximately $1.0 billion for the first quarter, an increase of 14 percent compared to approximately $0.9 billion in the first quarter of last year.
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