CNH Industrial’s construction equipment division reported its most profitable first quarter in over a decade. The manufacturer of construction and agricultural machinery reported a net sales increase of 23 per cent to $803 million in its construction division in the first quarter of 2022. The company’s portfolio of construction equipment is sold under three brands: Case Construction Equipment, New Holland Construction, and most recently, Eurocomach, part of the portfolio acquired with Sampierana.

Chief Executive Officer Scott Wine said the construction division delivered $32 million in earnings before interest and taxes at a 4 per cent margin. He said the company is seeing high demand for construction equipment in all its regions, and estimates for 2022 are largely unchanged, except in South America where CNH is anticipating some upside to demand in an election year. In North America, demand from customers ahead of projects related to the U.S. infrastructure bill could be a potential upside.

“Our improving construction equipment performance is fundamentally sound with a strong focus on product quality and design and expanding our market reach,” Wine said. In conjunction with that progress, he said, order books continue to build up year over year for both light and heavy equipment across all regions. CNH is practically sold out for 2022 production slot in North America.

The acquisition of Sampierana has brought in a competitive range of compact excavators built through a cost-effective supply chain, helping strengthening CNH’s presence in Europe, the company says.

“Our construction business in Europe specifically has had a rough decade or so,” Wine said. “With Sampierana coming on, we are going to see construction growth and actually profitability for the first time in a long time in Europe.”

With Case Construction Equipment’s celebration of its 180th anniversary, he is confident there is a profitable future ahead for it and the New Holland Construction brand.