CNH Industrial, the manufacturer of Case and New Holland brands of construction equipment, reported consolidated revenues of $33.4 billion for 2021, a 28% increase year-over-year.
In Q4 2021, revenues were up 7% to $9.1 billion compared with the same period in 2020.
Looking at the construction segment, 2021 net sales were up 42%, driven by favorable price realization, higher demand and lower destocking by dealers and distributors. Net sales for the construction sector totaled $3.1 billion, compared with $2.2 billion in fiscal year 2020.
The company says global demand for construction equipment increased by 14% compared to 2020, with heavy equipment up 16% and compact equipment up 13%. Regionally, the company saw demand increase 23% in North America, 19% in Europe, 87% in South America, and 6% in the rest of the world.
Looking at CNH’s agricultural segment, North American tractor demand was up 10% for tractors under 140 horsepower and up 23% for tractors over 140 horsepower; combines were up 25%. Net sales for the year rose to $14.7 billion, a 34.8% increase from 2020.
2021 also marked the last year of full operations with Iveco Group, the company's on-highway division. The split from Iveco became official January 1, 2022. Excluding Iveco Group, CNH's revenues for 2021 totaled $19.5 billion, a 32% jump from 2020.
“I am proud of, and profusely thankful for, how our CNH Industrial team managed through a difficult year. Between external challenges: Covid, supply chain, etc., and internal opportunities: spin, Raven acquisition and integration, and our customer focused reorganization, they rose to every occasion while still exemplifying our renewed focus on delivering for our customers and dealers,” said CNH Industrial CEO Scott W. Wine.
“Their efforts drove company record revenue and earnings per share, and it is especially rewarding to generate such results in our final year as a combined entity. This performance represents a solid foundation for both Iveco Group and CNH Industrial’s future success, particularly as it includes our second consecutive year of net cash, with over $1.7 billion of positive free cash flow of industrial activities for 2021. In Q4 we outperformed expectations by managing our supply chain, specifically microchip shortages, better than anticipated, and while these pressures are likely to persist, so is our team’s demonstrated ability to overcome them. With continued strength in our end markets and order books and a comprehensive strategy for the future, CNH Industrial is excited to enter 2022 as a pure play in agricultural and construction equipment.”
CNH expects sales to grow by 10% to 14% in 2022.