The third-largest manufacturer of agricultural equipment reported second-quarter results this week, showing net earnings of $1.8 billion, a decline of approximately 25 percent compared to last year.
Although net sales for the first six months of 2009 were down 19.3 percent compared to the same period in 2008, most of the decline came from sales overseas, the company said.
The global recession and constrained credit environment hurt demand for agricultural equipment across North America, Europe and South America, but North American sales fell by only 1 percent compared to the same period in 2008.
Industry unit retail sales of tractors under 100 horsepower declined approximately 25 percent in the second quarter compared to the prior year due to weakness in the landscaping, residential construction and dairy sectors.
High horsepower tractors were down approximately 9 percent in the second quarter compared to strong levels in the prior year. Industry unit retail sales of combines for the second quarter of 2009 grew by 27 percent, the company said.
Other agricultural and construction equipment makers have reported large declines in sales for the quarter, impacted by the global recession.