CNH Industrial’s agricultural equipment division (Case IH, New Holland, Steyr) reports revenues of US$2,808 billion for the second quarter of this year. Down 7.5% when compared to the US$3,035 billion recorded during the same three months in 2015, total revenues for the first half of this year of US$4,932 billion are down 12% when compared to the same six months a year ago. The parent company blames lower industry volumes, an unfavourable product mix in the row crop sector in North America and an unfavourable industry volume in the small grain sector in EMEA (Europe, Middle East and Africa). Net sales increased in the Asian-Pacific region, mainly driven by higher volume in Australia. Sales in specialty tractors and harvesters in EMEA remain strong, and increased demand for sugar cane harvesters in South America offset the industry decline for tractors. Operating profit was US$301 million for the second quarter (US$263 million Q2 2015). The company says the increase was primarily due to positive pricing and cost containment actions, including material cost reductions, and favourable foreign exchange impact. It remains to be seen what the rest of this year will bring but it would appear unlikely that the agricultural equipment division will beat last year’s total revenue of US$11,025 billion, which incidentally was down 27% on 2014’s US$15,204 billion. When all CNH Industrial divisions are lumped together, consolidated revenues of US$6,753 million for the second quarter of 2016 are down 2.9% when compared to the same three months in 2015. Total revenues for the first half of this year were US$12,125 billion, and the concern expects to achieve a 2016 total of somewhere between US$23-US$24 billion (2015 US$25.9 billion).
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