CNH Industrial blames lower industry demand for the 16% drop in net sales in the second three months of this year to US$5.49 billion (US$6.57 billion Q2 2023).
Agriculture (Case IH, New Holland and Steyr) accounted for the largest share of the total of US$3.91 billion, but this figure was a fifth lower than the US$4.89 billion in Q2, 2023.
Following a similar pattern to the first three months of this year when the concern’s ag net sales of US$3.37 billion were 14% lower than from January to March in 2023, the company says it continues to be affected by decreased industry demand and dealer inventory requirements across all regions.
Industry volume was down 11% year-over-year in the second quarter for tractors under 140hp in North America and up 2.0% for 140hp+ tractors. The combine market was down 5.0%. South America tractor demand was down 10% and combine demand was down 26%, continuing the recent negative trend. Asia Pacific tractor demand was up 1.0% and combine demand was up 4.0%.
In EMEA (Europe, Middle East and Africa), tractor and combine demand was down 10% and down 36%, respectively. CNH’s construction division net sales for Q2, 2024, were also 16% lower at US$890 million (US$1.06 billion same three months in 2023).
Looking ahead, the company forecasts that global industry retail sales will continue to be weaker in both agriculture and construction equipment markets for the remainder of this year (agricultural machinery net sales forecast to be down by 15% to 20%).
CNH affected by declining markets – Profi
For more up-to-date farming news click here and subscribe now to profi and save 47%.
