Agricultural machinery manufacturer Case New Holland said it was able to charge farmers higher prices for its tractors and combines last year, leading to higher sales and profits for the company.

Reporting results for its 2018 financial year, Case New Holland said sales of agricultural machinery grew by 10% last year to reach $11.8bn (€10.5bn).

Case New Holland reported a 2% increase in tractor sales, while sales of new combine harvesters were up 5% year on year.

The company saw strong growth in tractor sales in North America (+5%), although tractor sales in Europe and the Middle East were down 8%.

Combine sales in North America jumped by 10% in 2018, while sales in Europe were up 4%. In South America, combine sales were also up 10%.

Profits (EBITDA) in the business grew by 33% in 2018 to hit $1.7bn (€1.5bn), as profit margins widened from 11.7% in 2017 to a very strong 14% in 2018.

Case New Holland said this was driven by a 2.5% increase in agricultural machinery prices last year.

For 2019, Case New Holland is forecasting a mixed outlook due to trade tensions and weak farm prices.

Case New Holland is forecasting tractor sales to be flat or slightly higher at best, while sales of combine harvesters are forecast to be flat in north and south America, while in Europe new combine sales are set to fall by as much as 5%.

Agricultural machinery sales account for about 40% of Case New Holland’s overall business.