Key Takeaways
- Most companies report strong demand and a positive outlook for the rest of 2021. The US infrastructure bill is expected to provide long-term support.
- Rising input costs, such as steel and copper, are increasing manufacturing expenses.
- Supply chain issues remain a challenge, but large manufacturers like Caterpillar believe they are manageable.
- Equipment rental demand is showing signs of recovery.
Global construction demand remains robust, fueled by post-pandemic recovery. Many manufacturers see a multi-year upswing driven by fiscal stimulus and infrastructure investments.
Higher input costs and supply chain disruptions are concerns, though most companies believe these challenges won't derail their operations. Caterpillar notes that inventory levels are stable despite ongoing supply issues.
Caterpillar's dealer inventories are currently at historically low levels, indicating tight supply conditions.
Company Outlooks
| Company | Outlook | Date |
| Titan Machinery | Positive | 8/26/2021 |
| John Deere | Positive | 8/20/2021 |
| Linamar | Positive | 8/11/2021 |
| Manitowoc | Positive | 8/5/2021 |
| Manitex | Positive | 8/3/2021 |
| Caterpillar | Positive | 7/30/2021 |
| CNHI | Positive | 7/30/2021 |
| Hitachi | Positive | 7/30/2021 |
| Komatsu | Positive | 7/30/2021 |
| Terex | Positive | 7/29/2021 |
| Oshkosh | Positive | 7/29/2021 |
| Volvo Construction | Positive | 7/20/2021 |
| Atlas Copco | Positive | 7/16/2021 |
Titan Machinery
Titan Machinery reported a 35% increase in equipment revenue compared to the previous year, supported by strong demand and improved inventory management. CEO David Meyer highlighted the company’s healthy inventory position and growing parts and service business as key drivers of growth.
The company is seeing increased construction activity across its markets, driven by economic reopening, low interest rates, new housing starts, and favorable oil prices. CFO Bryan Knutson noted that operational improvements have significantly boosted pretax profitability.
Despite supply chain constraints, Titan is confident in its ability to meet revenue targets and has raised its financial forecasts for the second half of the fiscal year.
View Titan Machinery dealersJohn Deere
John Deere reported strong results across all product categories, despite significant supply chain pressures. CEO John C. May emphasized the resilience of the company’s operations and the strength of its dealer network.
The company expects continued demand for farm and construction equipment, with North American construction equipment sales forecasted to grow between 15% and 20%. Compact construction equipment sales are expected to rise 20% to 25%, and forestry equipment should see a 15% increase.
Strong housing market activity has benefited earthmoving and compact equipment demand. While growth has slowed slightly, non-residential investment and rental company orders are showing positive trends.
John Stone, President of Construction & Forestry, added that demand for earthmoving and compact equipment will outpace production, leading to lower inventory levels at the end of the fiscal year.
View John Deere dealersLinamar (Skyjack)
Linamar CEO Linda Hasenfratz noted that while supply chain shortages pose challenges, the company is managing them effectively. She expressed confidence that sustained market demand will return once these issues are resolved.
Skyjack saw a strong performance in Q2, with commercial and industrial sales up 48% due to strong product performance. Equipment utilization remained high, with levels reaching 93–98% of 2019 levels.
Linamar expects double-digit growth in core North American and European markets in 2021 and 2022. A strong backlog is expected to drive continued sales growth.
View Skyjack dealersManitowoc
Manitowoc CEO Aaron Ravenscroft stated that demand for products exceeded expectations, driven by improving market conditions. However, he warned that rising inflation, supply chain issues, and labor shortages could impact the remainder of the year.
The company continues to see strong demand in Asia and Europe, though the European mobile crane market is still recovering. In the Americas, the company anticipates growth from potential infrastructure legislation.
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Manitex
Manitex CEO Steve Filipov reported higher revenues, improved gross margins, and better EBITDA. He noted that the company is gaining market share in certain European markets and is well-positioned for industry-wide recovery.
The company is seeing increased confidence from distributors and partners, with global tenders continuing to flow. Legislative progress on infrastructure spending in the U.S. is seen as a positive development.
With a backlog of over $111 million, Manitex is optimistic about a strong finish to the year, despite ongoing supply chain challenges.
View Manitex dealersCaterpillar
Caterpillar Chairman and CEO Jim Umpleby highlighted strong sales and revenue growth across all regions and segments, driven by improved end-market conditions.
The company reported gains in all three primary segments, with machines and construction industries seeing 20% growth. Residential construction demand remained strong, and non-residential demand showed improvement.
Mining and heavy construction sectors also performed well, with strong quotation activity and order growth. Energy and Transportation sales turned positive, rising 1%.
Dealer inventory levels remain near the low end of historical ranges, and availability for most products is within normal limits.
View Caterpillar dealersCNH Industrial (Case)
CEO Scott Wine noted that despite supply chain challenges and inflation, strong end-market performance, pricing strategies, and teamwork led to record second-quarter earnings. He emphasized that the industry is in a cyclical upturn.
Construction Equipment demand is growing in both light and heavy segments, driven by residential construction and preparations for the U.S. infrastructure bill. South America, particularly Brazil, is experiencing high demand.
View Case dealersHitachi
Hitachi reported solid order intakes, primarily in markets recovering from the pandemic.
View Hitachi dealersKomatsu
Komatsu expects steady demand for construction, mining, and utility equipment in both residential and non-residential sectors. Rental equipment demand is starting to recover.
European construction demand is rebounding, especially in the UK, Germany, and France. Global mining demand is up 46% year-over-year, driven by Oceania, Latin America, and Asia.
View Komatsu dealersTerex
Terex reported strong performance in AWP and MP segments, benefiting from positive market fundamentals. The company sees a multi-year replacement cycle for access equipment as fleet ages increase globally.
Demand in utility and materials processing segments is strong, with growth in parts and service businesses. Global monetary and fiscal stimulus programs are supporting end-market demand.
Terex is seeing robust market conditions worldwide, with strong demand for cement, material handling, and environmental solutions.
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Oshkosh (JLG)
Oshkosh CEO John Pfeifer acknowledged global supply chain disruptions and labor shortages as challenges, but noted the company’s effective execution delivered strong results.
Access Equipment demand is surging, with strong order growth and a record backlog of $1.75 billion. The company expects a multi-year replacement opportunity as rental fleets age.
Electric booms and scissor lifts are gaining traction, with customers seeking improved performance, cost savings, and reduced carbon footprints.
View JLG dealersVolvo Construction Equipment
Volvo Group CEO Martin Lundstedt reported good demand for products and services, despite semiconductor and material shortages that caused production stoppages. The company achieved an adjusted operating margin of 10.7%.
Price increases are being implemented to offset rising raw material costs outside of China.
View Volvo Construction dealersAtlas Copco
Atlas Copco expects customer business activity to remain at high levels. Order intake rose 45% organically, reflecting strong market demand.
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#Earnings Summary #construction #Caterpillar #Case Construction #Genie #Terex #JLG #Volvo Construction #John Deere #Manitowoc #Hitachi #komatsu
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