CNH Industrial agricultural (includes Case IH, New Holland and Steyr) equipment net sales of US$14 billion in 2024 were 22% lower than the US$18.1 billion in 2023. The fall is due to lower industry demand.
Following a subdued first nine months, there was no upturn in the final three months of last year with ag net sales down 31% to US$3.4 billion. This was primarily due to lower shipment volumes on decreased industry demand across all regions and dealer destocking. “As intended, agriculture dealer inventory went down in Q4 by over US$700 million due to focused retail sales support and 34% fewer production hours,” comments CEO Gerrit Marx of CNH Industrial.
European tractor and combine demand were down 8.0% and 11%, respectively in the final three months of 2024. The decline in industry volumes was even higher in North America; down 34% year-over-year in Q4 2024 for 140hp+ tractors and -10% for tractors below 140hp. Combine sales were down by one third. In South America, tractor and combine markets were down 5.0% and 21%, respectively.
When added to construction equipment, CNH Industrial consolidated revenue of US$19.84 billion in 2024 was a fifth lower than in 2023, and full year net income of approx. US$1.26 billion was a lot lower than the US$2.28 billion in 2023.
The concern expects the challenging market conditions will continue at least through the first half of 2025, and says it will keep production levels fairly low to further drive down inventories.
The company forecasts that 2025 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2024. The lower production and sales levels will negatively impact this year’s results and the outlook is that agricultural equipment sales will be 13%-18% lower (construction sales 5.0%-10% lower) than in 2024.
For more up-to-date farming news click here and subscribe now to profi and save 47%.
