CNH Industrial, the parent company of Case IH and New Holland, reports agricultural net sales of US$3.37 billion for the first three months of this year. Roughly 14% lower than from January to March in 2023, the decrease is primarily due to lower global demand for new tractors and machines.
In North America, industry volume was down 15% year-over-year from January to March for tractors below 140hp (-2.0% for 140hp+ tractors), and the market for new combines was down 17%.
In EMEA (Europe, Middle East and Africa), tractor and combine demand was 15% and 24% lower, respectively. South America tractor demand was down 18% and combine demand was down 40% continuing the negative trend of the second half of 2023. Asia Pacific tractor demand was down 12% while combine demand was up 16% in the region as a whole, but down 22% in Australia and New Zealand.
CNH’s construction division also generated lower net sales in the first three months of this year of US$758m (US$849 Q1, 2023), and when agricultural and construction are added together CNH Industrial net sales for the first three months of this year were roughly 14% lower at US$4.81 billion. Net income was down 17% from US$486 million in Q1 2023 to US$402 million.
Looking ahead, the company forecasts that 2024 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2023.
In key markets where it competes, the firm previously estimated agriculture industry retail sales to be down between 10-15% but now projects industry volumes down approximately 15%, at the low end of the previous range. Construction equipment industry retail sales are still expected to be down around 10% when compared to 2023.
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