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FIRST QUARTER OF 2022 PROVES POSITIVE FOR MANY MANUFACTURERS

First 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.

INDUSTRY NON-PROFITS CREATE DAMAGE PREVENTION INSTITUTE METSO OUTOTEC ACQUIRES TESAB ENGINEERING

The Gold Shovel Association (GSA), a non-profit association focused on improving safety by providing meaningful damage prevention certifications, will join the Common Ground Alliance (CGA). This new arm of CGA will be called the Damage Prevention Institute.

The Damage Prevention Institute plans to consolidate data and resources of CGA and GSA to generate insights that will reduce the rate of damage to buried infrastructure. Building on CGA’s Best Practices and DIRT (damage information reporting tool) data, as well as GSA’s metrics development, the Damage Prevention Institute will be structured around a metrics-focused, peer review-based model of shared responsibility.

“We believe CGA’s new Damage Prevention Institute is a game changer for the industry, and we are pleased that the Gold Shovel Association shares our vision in this effort,” said Sarah K. Magruder Lyle, CGA president and CEO. “By focusing on shared responsibility through a peer-review process, and consolidating data and metrics to establish industry-wide benchmarks, the Damage Prevention Institute will increase engagement from all stakeholders and help us get a much clearer picture of the system’s inefficiencies and how we can address them.” Metso Outotec has signed an agreement to acquire Tesab Engineering Ltd., a Northern Ireland based company offering mobile crushing equipment for aggregates applications, including quarrying, recycling, asphalt, and concrete. Their turnover in 2021 was approximately EUR 30 million and they have more than 60 employees, primarily in Europe. The value of the deal is not disclosed. It will have no material impact on Metso Outotec’s financials. Closing is expected to take place during the second quarter of 2022.

With the acquisition, Metso Outotec will complement its current offering in the mobile crushing and screening markets.

Tesab’s product portfolio includes mobile jaw, impact, and cone crushers; mobile screens; scalpers; and stackers. Tesab will continue as an independent brand within Metso Outotec and manage its own distribution network.

LIUGONG NORTH AMERICA PROGRAM TO PROVIDE FLEET FINANCING

LiuGong North America’s new private label program, LiuGong Finance, will provide customers and dealers with financial support for both LiuGong North America and non-competing products. Additionally, it will enable dealers to utilize competitive rates and flexible finance structures under a captive finance program.

LiuGong Finance offers both retail financing and dealer-owned rental fleet financing under the program.

The three types of retail financing included are FMV lease, equipment loan, and custom structures. There are two types of dealer-owned rental fleet financing offered: rental equipment loans and custom structures.

AGG1 IN REVIEW

Turn to page 36 to learn about new technology, processing solutions, and more from AGG1 2022.

SUNBELT RENTALS ORDERS 700 FORD ELECTRIC PICKUP TRUCKS

Sunbelt Rentals has expanded its electric on-road fleet with the order of 700 Ford F-150 Lightning trucks. The purchase will contribute to Sunbelt Rentals reducing greenhouse gas (GHG) emission intensity by 35 percent by 2030.

“This investment highlights our strong commitment to reduce our GHG emissions through the adoption of new onroad fleet technology,” said Al Halvorsen, vice president of ESG at Sunbelt Rentals. “Starting the conversion of our truck fleet to electric alternatives, like the Ford Lightning, is critical to our ability to reach our ambitious GHG reduction goals and still continue to serve our customers with availability, reliability, and ease.”

TRIMBLE DIVESTS LOADRITE, SECO, AND OTHER BUSINESSES TO THE JORDAN COMPANY

Trimble has agreed to sell its Time and Frequency, LOADRITE, Spectra Precision Tools, and SECO accessories businesses to Precisional LLC. The divestiture is in line with Trimble’s strategy to focus on areas core to its long-term growth and strategic product road map. The transaction is subject to a number of closing conditions and is expected to close in the second quarter of 2022. Financial terms were not disclosed.

LOADRITE, Spectra Precision Tools, and the SECO businesses have been reported as part of Trimble’s buildings and infrastructure segment. The Time and Frequency business has been reported as part of Trimble’s geospatial segment.

PROFESSIONAL HYBRID ELECTRIFIED MOBILE CRUSHING SOLUTIONS

ProTrack Equipment

11571 Mitchell Road Richmond, BC V6V 1T5 604-396-1120 info@protrackbc.com AMACO EQUIPMENT 5804 Datsun Road, Mississauga, ON L4W 1H2 Phone: (905) 670-3440 - Toll Free: 800-668-5355 - info@amacocei.com

ALTORFER CAT KICKS OFF 2022–2023 CATERPILLAR GLOBAL OPERATOR CHALLENGE

Equipment operators from Iowa, Illinois, and Missouri have competed in the first Caterpillar Global Operator Challenge dealer event of 2022. Altorfer Cat organized the event, which challenged the skills of all operators with various trials using the latest Cat excavators, loaders, dozers, and backhoe loaders.

The Altorfer Cat challenge was designed to showcase the skills and talents of operators across several types of equipment. Four different timed challenges were established using six separate pieces of Cat equipment. The operators were to maneuver through various obstacles with total combined time across all the challenges being the determining factor in their placement.

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SWT ATTACHMENTS EXPANDS INTO CANADA WITH NEW DEALER

SWT Attachments’ hydraulic hammer line will be available at Tidal Tractor in Nova Scotia, New Brunswick, Newfoundland & Labrador, and Prince Edward Island. The SWT hydraulic hammers are available for excavators ranging from 2,000 to 122,000 pounds (1 to 55 tons).

Better. It’s something we all strive for. But how do you get there? You have to be industrious. Be innovative. Be strong. Be smart. And you need ag equipment that will work with you, helping you go above and beyond expectations. Because good enough is never good enough.

Check out our full line of JCB products at your local dealer or visit JCB.com today.

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