CNH’s continued struggles with the global agricultural slowdown continued in the second quarter, compounded by decreased construction equipment sales.
The company, manufacturer of the Case Construction and New Holland equipment brands, reported sales and revenues of $7 billion, down 10 percent from the same period in 2014. Profit plummeted 236 percent to $122 million.
For the first six months of the year, sales are down 22 percent to $13 billion while profit is down 314 percent to $145 million.
Ag sales were down 31 percent during the 2Q to $3 billion and are down 31 percent in the first six months of the year to $5.6 billion. Profit for the segment fell 369 percent during the quarter to $263 million, and is down 629 percent for the year so far at $467 million.
CNH says the quarterly decreases were driven by an anticipated decline in volume’s in the row crop sector along with dealer inventory de-stocking actions.
Construction equipment fell 21 percent during the quarter to $740 million and are down 21 percent for the first six months to $1.3 billion. The company primarily attributes the decreases to declines in municipality-driven demand in Latin America where infrastructure investments slowed.
Sales and profit figures for the company’s remaining segments are listed below.