Agricultural machinery manufacturer Case New Holland Industrial saw sales increase 10% to $11.1bn in 2017.

Operating profits increased 16% to $949m, mainly driven by increased volumes in most regions.

The maker of Case and New Holland machinery reported a 1% rise in prices which more than offset increases in raw material cost and unfavourable foreign exchange fluctuations. Operating margins increased to 8.5%.

New regulatory requirements led to higher manufacturing costs across Europe, the Middle East and Africa.

The company said that worldwide demand for agricultural equipment is expected to improve in 2018, with all regions seeing a performance “flat to up 5% on average”. The modest growth will come even as farm incomes “are expected to remain stable, leading to no significant changes in plater acreage”.

In 2017, it saw growth in the sales of agricultural equipment in Asia Pacific, Europe and Latin America.