AGCO reported 1.4% net sales drop to approximately $1.7 billion for the second quarter of 2010, down 1.4% compared to the second quarter of 2009. Further, net sales for the first six months of 2010 were $3.1 billion, a decrease of approximately 6.9% compared to the same period in 2009.

Excluding the favorable impact of currency translation of approximately 4.2%, net sales for the first six months of 2010 decreased approximately 11.1% compared to the same period in 2009. Despite that, AGCO reported a bigger-than-expected quarterly profit driven by especially strong sales of its agricultural machinery in South America, which largely offset continued weakness in much of the rest of the world. AGCO posted a second-quarter profit of $62.9 million, or 66 cents a share, up from $57.4 million, or 61 cents a share, last year.

Cummins Inc. said that its second quarter had the highest quarterly earnings as a percentage of sales in more than 25 years. The Columbus, Ind. company cited productivity improvements in manufacturing, as well as strong performance in international markets.

Sales of $3.21 billion in the second quarter were 32 percent higher than $2.43 billion in the same quarter in 2009, the company reported. Earnings before interest and taxes (EBIT) was $401 million, or 12.5 percent of sales, up from $109 million or 4.5 percent of sales in the second quarter of 2009. EBIT also improved from 10.7 percent in the first quarter of 2010. For the first time ever, Cummins said, all four segments posted quarterly EBIT in excess of 10 percent of sales.

The sales gains were led by the company’s engine and components segments, which each reported 45 percent sales improvements compared to the same period in 2009. Power Generation sales increased 16 percent, while Distribution sales rose 24 percent. This despite what Cummins characterized as a weak North American heavy duty truck market, which the company said was due to the transition to new on-highway emissions standards at the beginning of the year.

Based on the Company’s performance in the first half of 2010 and its forecast for the rest of the year, Cummins today increased its financial guidance for 2010. The Company now expects to generate EBIT of 12 percent of sales on revenues of $13 billion.

Last week, Caterpillar Inc. reported sales and revenues were up $2.434 billion from the second quarter of 2009. Sales volume improved $2.259 billion and profit was up $336 million from the second quarter of 2009. The increase, Cat said, was primarily the result of higher sales volume, improved operating efficiencies and favorable price realization, partially offset by higher taxes, provisions for incentive compensation and the absence of $110 million of LIFO inventory decrement benefits from the second quarter of 2009.

Further, Cat said second-quarter profit of $1.09 per share, an increase of $0.49 per share from a profit of $0.60 per share in the second quarter of 2009. Profit of $707 million was 91 percent higher than second-quarter 2009 profit of $371 million. Sales and revenues of $10.409 billion were up 31 percent from $7.975 billion in the second quarter of 2009.

Three-year agreement makes Freightliner Custom Chassis axles standard in six diesel motorhome models Freightliner Custom Chassis Corp. (FCCC) announced it has entered into a three-year exclusivity agreement with Winnebago Industries, that will make FCCC’s XCS straight rail and XCL chassis standard for the Winnebago Journey and Journey Express, Winnebago Tour, Itasca Meridian, Itasca Meridian V Class and Itasca Ellipse rear diesel-pusher motorhomes. No financial details of the agreement were provided.

“We are pleased to have signed this exclusivity agreement with Winnebago Industries, continuing FCCC’s long-standing relationship with them,” said Jonathan Randall, director of sales and marketing for FCCC.

Freightliner Custom Chassis Corp., a a subsidiary of Daimler Trucks North America LLC, manufactures premium chassis for the motorhome, delivery walk-in van, and school bus and shuttle bus markets.

Amid a general – if in most cases gradual - upturn in the financial fortunes of many industry heavyweights, the latest rousing trading report comes from Volvo Construction Equipment. In reporting its second quarter results, the company said the global construction equipment industry is recovering faster than earlier predicted with the BRIC markets of Brazil, Russia, India and China driving the progress.

Volvo said the total world market for heavy, compact and road equipment increased by 43% during the second quarter when compared to last year. All markets were up: Europe by 20%, North America by 9%, Asia by 60 % and other markets by 77%. Volvo CE said the value of its order book at the end of the second quarter was 78% higher than at the same date in 2009 prompting a revision in the outlook for the full year 2010.

The European market is now expected to increase by 10%, up from the previous forecast of zero to 10%. North America is now predicted to grow by between 5 and 10% in 2009, up from the previous expectation.

The biggest upward revisions are in Asia and other international markets with Asia predicted to rise by 30 to 40% and other markets up 40% – up from earlier forecasts of 20% for both regions, it said.

Quality Control Corp (QCC) has announced that it has acquired the Dukes & EHV spool valve product lines from Sauer-Danfoss. No financial details were provided.

Sauer-Danfoss had manufactured the valves at its Easley, S.C., facilities. The physical product transfer has been completed and QCC has begun full production of the products at its Harwood Heights, Ill., facilities.

“The addition of the Dukes and EHV spool valve product line to QCC’s existing Webster and CP Products solidifies the company as a key fluid power legacy product manufacturer insuring a continuity of supply to OEM and end user customers,” said Gregory M. Willard, president and CEO of QCC. “Sauer-Danfoss and QCC have cooperated to ensure that the availability of new valves, parts and service kits for existing valves will continue without disruption.”