NEWS ROOM
FIRST QUARTER OF 2022 PROVES POSITIVE FOR MANY MANUFACTURERS
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heavyequipmentguide.ca | MAY 2022
irst quarter financial results from construction equipment and related manufacturers are showing signs of a solid start in the industry for 2022. Deere & Company, which ended its first quarter on January 30, 2022, reported an increase in net sales and revenue worldwide despite the labour challenges it faced in late 2021. Net income slipped to $903 million, down from $1.224 billion the previous year. However, net sales for the Construction & Forestry segment were $2.544 billion in the quarter, a three percent increase from 2021, thanks to price realization and higher shipment volumes. Caterpillar has also experienced a good first quarter of 2022, ending March 31. First quarter sales and revenue of $13.6 billion, an increase of 14 percent over the $11.9 billion reported in the same period of 2021, were driven by higher sales volumes and higher end-user demand for equipment and services, as well as impact from changes in dealer inventories and favourable price realizations. Cat dealers increased their inventories more during the first quarter of 2022 than in Q1 of 2021. One significant Cat dealer has also seen positive results through the first three months of the year. Toromont reported a seven percent increase in its revenues through Q1, thanks to higher product support revenues as well as a larger fleet and higher utilization on the rental side, where revenues were up 29 percent year over year. The Equipment Group saw revenues rise 8 percent on the quarter, to $786.6 million. Continuing pandemic challenges in China have impacted the finances of one manufacturer; Volvo Construction Equipment reported that its overall global sales through the first quarter have slipped by 9 percent. Other regions have picked up some of the slack, however, with North America increasing by 11 percent and South America jumping 62 percent, among others. Service sales have also risen by 17 percent. Engine manufacturer Cummins also faced some challenges from the Chinese market in the first quarter, but still reported a good result for the period. First quarter revenues of $6.4 billion were up five percent from the same period in 2021 and North American sales jumped by 12 percent. The Chinese market pushed international revenues down three percent.
