Chrysler 2002 Annual Report Download - page 48

Sales performance
The global market for agricultural equipment expanded by
4.9% compared with 2001, due to strong demand in Western
Europe (+5.3%) and Latin America (+15%). In North America,
the overall market held relatively steady, but demand for
combine harvesters was down sharply.
Sales of agricultural equipment rose by 10.7% compared
with 2001, reflecting strong gains in Brazil and especially
in Asia, where the new Chinese operations made a positive
contribution. In Western Europe, the Sector’s continuing
success with its combine harvesters enabled it to increase its
share of that market, but tractor sales were down due to the
limited availability of new models. In North America, sales of
combine harvesters held steady compared with 2001 despite a
contraction of the overall market. In this market as well, limited
availability of new products had a negative impact, especially
on shipments of high horsepower tractors.
In 2002, demand for construction equipment declined as
weakness in Western Europe (-6.1%) and North America (-9.4%)
was offset only in part by gains in Asia (+7%). Unit sales were
down 8.3% as the net result of a negative trend in Europe and
North America and rising demand in Asia. In this difficult
environment, CNH Global maintained its overall position
in the heavy equipment market.
Growth strategies
In 2002, the Sector continued to implement its integration
plan, focusing on three main areas: industrial restructuring,
purchasing and logistics. The restructuring of the manufacturing
organization and the streamlining of the product platforms,
which were cut from more than 100 to about 60 without
reducing the features that differentiate brand identities, offered
some of the best synergies created by the Case and New
Holland merger. The growing integration that is being realized
in the areas of purchasing, logistics and overhead is expected
to yield additional substantial savings.
Product innovation
In 2002, the Sector continued to introduce new products that
share common platforms. By the end of 2004, Case IH and
New Holland will have adopted new platforms for all of their
vehicle lines.
In 2002, Case IH presented two all-new high horsepower row
crop tractor ranges: the Magnum and the MXM Maxxum.
Joining the Case IH product offering were a new self-propelled
forage harvester, a new range of utility tractors and substantial
additions to its growing line of hay tools.
New Holland presented its new TG range, which became
available in early 2003, and launched a new, expanded TM
medium-high horsepower row crop tractor range. Also
introduced was the new CR range of rotary combines,
expanding the innovative styling and features that earned the
CX conventional combine the 2002 Industrial Design Excellence
Gold Award as well as the European Combine of the Year
Award. New round balers in Europe and North America, a
new range of utility combines, upgrades to the existing forage
harvester lines, and a significant expansion of the medium
and utility tractor ranges in Latin America completed the
New Holland offering.
In January 2002, CNH finalized its agreements with Kobelco
Construction Machinery Co. Ltd. (“Kobelco Japan”) and Kobe
46 Report on Operations
Agricultural and Construction Equipment — CNH Global
(in millions of euros) 2002 2001 2000
Net revenues 10,513 10,777 10,770
Operating result 163 209 45
EBIT 165 122 (436)
Net result before
minority interest (211)(291) (754)
Cash flow 330 262 (192)
Capital expenditures 431 615 447
Research and development 300 341 366
Net invested capital 5,140 6,597 6,932
Number of employees 28,528 28,127 31,033
Highlights
Revenues by geographical
region of destination
Italy Rest of Europe Rest of the world
Employees by geographical
region
050% 100%