CNH Industrial, the parent company of Case and New Holland construction equipment, cited “lower industry demand and dealer inventory management” when reporting its net sales decreased 10% in the first quarter compared to the same period last year.
For the first three months of the year, construction segment revenues were down 11% to $758 million. The global industry volume for heavy construction equipment dropped 1% year-over-year in the first quarter, while light construction equipment was down 8%.
The Asia Pacific region was the only bright spot, with demand increasing by 3%. Demand decreased 14% in EMEA, 10% in South America, and 6% in North America. Despite the sales declines, the construction segment's gross profit margin increased across all regions for an aggregate improvement of 150 basis points.
Agriculture net sales dropped 14% to $3.37 billion, primarily due to lower industry volume across all regions and dealer inventory management, partially offset by favorable price realization.
In total, net sales of Industrial Activities were $4.13 billion in the quarter, down 14 percent compared to the corresponding quarter in 2023. Price realization continued to be favorable for agriculture and essentially flat for construction, CNH said in its earnings report.
“The CNH team navigated a declining market environment in the first quarter, as lower industry demand persisted especially in South America and Europe. Anticipating these headwinds, we are continuing to improve what we can control – production efficiency, disciplined commercial execution, judicious SG&A reductions, and thoughtful product and technology investments,” said CEO Scott Wine. “As always, the team is meeting challenges head-on and working diligently to deliver solutions for our customers. I would like to thank our employees and dealers for their unwavering support of the world’s farmers and builders.”
CNH Industrial
