Chrysler 2008 Annual Report Download - page 78

Report on Operations CNH 77
Commercial Performance
In 2008, the global market for agricultural equipment grew by
2%, with retail unit volumes for tractors and combine
harvesters increasing 1% and 35%, respectively, compared to
2007. Demand for tractors grew strongly in Latin America, was
up slightly in Western Europe and flat in Rest-of-World. In
North America, sales decreased for under 60 hp models but
were up for higher-powered units. Combine harvester retail
unit sales recorded strong growth in all regions.
CNH’s brands were well placed to benefit from the agricultural
equipment industry’s strong performance. Worldwide tractor
market share was up, with gains in Latin America, Rest-of-
World and for higher-powered models in North America, while
share was unchanged in Western Europe. In a fast growing
combine market, CNH substantially maintained market share at
the global level, with an increase in Latin America, stable
positions in North America and Western Europe and a slight
decline in Rest-of-World, due to supply constraints.
Construction equipment unit retail sales decreased 11%
worldwide in 2008, as strong performance in Latin America and
growth in Rest-of-World markets were more than offset by
sharp drops in Western Europe and North America. Industry
sales of heavy construction equipment were up 2%, with
strong performance in Latin America and Rest-of-World, while
North America and Western Europe declined significantly. Light
construction equipment industry unit retail sales declined 20%.
Declines in North America, Western Europe and in Rest-of-
World were only partially offset by growth in Latin America.
CNH global market share in the construction equipment market
was stable at 2007 levels. In the strong Latin American
markets, share gain was achieved in light equipment while
heavy equipment share declined, constrained by production
capacity. In North America and Rest-of-World, market share
was stable in both segments. In the weak Western European
market, share declined slightly in both heavy and light
equipment as margins were preserved.
Innovation and Products
The strong commitment to innovation and steady improvement
in product quality enabled CNH to upgrade and expand its
product range, introducing new models for each of its four
global brands. Recognition of this commitment was
demonstrated by the many awards received during the year.
Case IH Agriculture launched extensions in Europe to its
Farmall utility tractors and Puma over-100 hp tractors and it
also launched the Quantum 65C & 75C utility tractors
particularly suitable for grassland, dairy, livestock arable,
poultry and vegetable farms.
In North America, the Farmall 65C & 75C, 64 hp and 76 hp Tier
3-compliant compact utility tractors for a wide variety of
applications, and its Puma 165-210 models, in the 135 to 180
horsepower range, can now be ordered autoguidance-ready.
The Magnum 335 was launched in Australia, representing the
highest powered drawbar machine, ideal for Australia’s cotton,
cereal and broad-acre farms.
Also in 2008, Case IH debuted its new mid-range Magnum row
crop tractors and an expanded line-up of high efficiency, Axial-
Flow Combines, including two new Class VII models and
introducing a new Class IX model in the industry’s largest
combine segment.
Agricultural and Construction Equipment
CNH – Case New Holland
Highlights
(€ millions) 2008 2007
Net revenues 12,723 11,843
Trading profit 1,122 990
Operating profit (*) 1,146 953
Investments in tangible and intangible assets 676 648
- of which, capitalised R&D costs 73 92
Total R&D expenditure (**) 286 308
No. of employees at year end 31,521 28,173
(*) Includes restructuring costs and net unusual income/(expense).
(**) Includes capitalised R&D and R&D charged directly to the income statement.