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NEW ERA BEGINS FOR HITACHI CONSTRUCTION MACHINERY AMERICAS WITH NEW EQUIPMENT AND EXPANSIONS UNDERWAY

Hitachi Construction Machinery Americas Inc. (HCMA) is launching the next chapter for Hitachi Construction Machinery in North America and Latin America.

On March 1, 2022, HCMA officially began leading the Hitachi brand’s construction and mining equipment sales and service support efforts.

At a commemoration celebration event held for employees at the HCMA headquarters in Newnan, Georgia, HCMA CEO Alan

Quinn and HCM Executive Vice President and Executive Officer

Yasushi Ochiai outlined what customers, dealers, and the industry can expect moving forward.

During his address, Ochiai said that this expansion in North

America and Latin America will be one of the most important for the company in the 70 years that HCM has been developing, producing, selling, and servicing construction and mining machinery.

“It has been the dream of many years for HCM to explore its own business in the region, not only with wheel loaders but also with other products, services, and solutions. Expansion of business in the Americas will give further momentum to the development and production of new machinery, and the promotion of sales and services. The Hitachi Construction Machinery Group will become a true global player,” Ochiai said.

Quinn added that March 1 marked a historic day for HCMA:

“While Hitachi equipment has been used on construction sites and mines throughout the region, moving forward, dealers and customers will experience Hitachi the same way the rest of the world does with a direct relationship. We are preparing to launch new machines and technologies while focusing on having a more direct relationship with our customers and dealers. We will do whatever it takes to be the best supplier our customers and dealers work with.”

CATERPILLAR’S 2022/23 GLOBAL OPERATOR CHALLENGE TO BE BIGGEST CAT CONSTRUCTION COMPETITION YET DEERE MARKS BEGINNING OF 2022 WITH STRONG FINANCIAL PERFORMANCE AND END OF HITACHI JOINT VENTURE

Caterpillar has invited operators around the globe to take on the 2022/2023 Global Operator Challenge. The challenge tests the skills and precision of equipment operators as they prove their excellence in operating Cat machinery and their ability to operate any piece of construction equipment safely and efficiently.

“More than 80 Cat dealers will host local, one-of-a-kind competitions, celebrating equipment operators, and enabling them to showcase their exceptional skills in fun and dynamic ways,” said Tony Fassino, group president, construction industries, Caterpillar Inc. “Whether their expertise lies in digging a trench, moving aggregates, or managing demolition, our Global Operator Challenge will be demanding for even the most experienced operators. We can’t wait to see what they can do with our machines.”

The first round of the Global Operator Challenge consists of local qualifiers, hosted by Cat dealers starting in March and running through September 2022. Caterpillar has added the requirement that every event must feature three different challenges on three separate pieces of equipment. Therefore, operators must operate a broad assortment of equipment to qualify for the next round.

Those who qualify in the local dealer events will then move onto regional semi-final competitions in October 2022. Nine finalists will emerge from the regional semifinals and participate in the global finals competition in Caterpillar’s outdoor exhibit during CONEXPO-CON/AGG 2023. The winner of the competition will receive an all-expense-paid trip for two to one Caterpillar facility worldwide.

“I’ve been operating Cat machines for more than 15 years,” said Jaus Neigum, owner of Industrial Backhoe Ltd. in Medicine Hat, Alberta, and winner of Cat’s 2019/2020 Global Operator Challenge. “Having the opportunity to demonstrate my skills and compete against peers from around the world was one of the most rewarding experiences in my career. If you’re an operator of heavy equipment, this is a contest you don’t want to miss. And, if you’re a business owner like me and my partners, I encourage you to put forward your best operators, because this competition is going to be even bigger and better than the last one.” It has been a busy few months for John Deere to kick off 2022. The company has finalized the end of its joint venture with Hitachi, acquired the three joint venture factories, kicked off new marketing opportunities and shown solid financial performance in its first fiscal quarter.

Deere & Company’s Construction & Forestry segment posted net sales of $2.544 billion worldwide in its first quarter, ending

January 30, 2022, up three percent from the previous year thanks to price realization and higher shipping volumes. The company’s three-month net income was down to $903 million from the $1.224 billion in the same period of 2021, thanks to a combination of effects from pandemic issues, supply chain challenges and a strike by the company’s UAW members that led to a new contract in November.

Deere & Company is expecting net income for fiscal 2022 to be in the $6.7 to $7.1 billion range.

March kicked off a new era for Deere as its longstanding joint venture with Hitachi concluded and the two companies went their own ways for excavator manufacturing and marketing.

Deere has acquired three factories that previously manufactured both brands of machine, in Kernersville, N.C.; Indaiatuba, Brazil; and Langley, B.C.

John Deere now controls its excavator design, product and feature updates, making it possible to more rapidly respond to customer requirements and integrate excavators with other

Deere construction products. It is likely that Deere will expand on the technology being designed for its other product lines and production systems, extending them onto Deere-designed excavators in the future.

SERVICE REVENUE STRONG DESPITE CHALLENGING INVENTORY ENVIRONMENT FOR RITCHIE BROS. IN Q4

Service revenue proved to be a positive point for Ritchie Bros. Auctioneers through the fourth quarter of 2021 while other areas of the business slipped slightly to end the year. Overall, the company is seeing positive results from its efforts to diversify its asset management offerings.

In the three months ending December 31, 2021, Ritchie Bros reported a total revenue decrease of 6 percent to $359.4 million, mostly on reductions in inventory sales revenue that saw a drop of 24 percent, to $114.6 million. Service revenue in the same period increased 6 percent, reaching $244.8 million. Operating income in the fourth quarter of 2022 declined 28 percent, to $52.5 million.

Net income attributable to stockholders dropped 37 percent to $30.6 million, down from $48.9 million in Q4 of 2020.

In the Auctions & Marketplaces segment, Ritchie Bros. reported total revenue in the quarter having decreased 10 percent, to $313.4 million, while service revenue was up 1 percent, to $198.8 million. Inventory sales revenue decreased to $114.6 million, a 24 percent drop.

MANUFACTURERS RESPOND TO UKRAINE CRISIS

As a result of Russia’s military actions against Ukraine, the European Union, the United States, and other countries have announced severe sanctions against Russia. Several companies in the heavy equipment industry have made statements, temporarily ceased deliveries, or donated to support impacted Ukrainians.

Due to the current unclear and changing sanctions situation, Metso Outotec has temporarily ceased its deliveries to Russia. Sales from Russia represented approximately 10 percent of Metso Outotec’s annual sales in 2021.

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CNH Industrial has donated $500,000 to support Ukrainians impacted by the current crisis. Plus, the company will match employee donations dollar for dollar through a global fund. In order to ensure the effective deployment of this donation, CNH Industrial will rely on the support of non-governmental organizations who are providing on the ground assistance to those in need. Currently, CNH Industrial has 38 employees based in Ukraine, and a dedicated team is providing them with ongoing support.

The Caterpillar Foundation, the philanthropic organization of Caterpillar Inc., is donating more than $1 million to support both the urgent and long-term needs of the Ukraine humanitarian crisis. This donation will support the American Red Cross, Project Hope, and the Center for Disaster Philanthropy. Donations will help support relief efforts such as water, food, clothing, hygiene sets, blankets, fuel for heating, medical supplies, and housing support in Ukraine and surrounding countries.

Additionally, Caterpillar says it is also complying with all applicable laws and evolving sanctions while hoping for a peaceful resolution to the crisis. Because of the challenges facing manufacturing in Russia due to supply chain disruptions, Caterpillar is suspending operations in the company’s Russian manufacturing facilities and will continue to look for ways to support affected employees.

John Deere has suspended shipments of machines to Russia and Belarus, planning to fully abide by U.S. and international sanctions. The John Deere Foundation has additionally been working directly with a number of organizations, including multiple UN agencies, to mobilize resources and support Ukrainians impacted by the crisis.

TAKEUCHI TO OPEN COMPANY’S FIRST U.S. MANUFACTURING FACILITY IN SOUTH CAROLINA

Takeuchi will open its first North American manufacturing facility in South Carolina. The facility will produce compact track loaders and expects to employ 100 employees. The facility will let Takeuchi reduce compact track loader production lead time for its customers and better meet market needs with product starting in 2022.