Photo courtesy of CNH Industrial N.V.
United Kingdom-based CNH Industrial N.V., whose equipment brands include Case and New Holland, has reported second quarter revenue of $6.57 billion, which represents 8 percent growth compared with the second quarter of last year.
Although the agriculture sector is the largest for CNH, the firm says net sales of more than $1 billion in its construction equipment sector demonstrated a 19 percent boost compared with a year ago.
Overall, CNH achieved record net income of $710 million in this year’s second quarter, citing significant improvements in gross profit margin for the agriculture and construction segments, with both reporting the highest quarterly adjusted earnings before interest and taxes margin.
“The CNH Industrial team delivered great results in the second quarter as we capitalized on favorable market fundamentals and solid operational execution," CEO Scott W. Wine says.
“Our agriculture segment set margin records, and for the first quarter in our history, construction net sales surpassed $1 billion. We are transforming the business and expanding our technology investments to drive growth and improve through-cycle margins.”
The construction revenue landmark was reached despite global industry volume for construction equipment that was down 9 percent year over year in the second quarter for heavy construction equipment. Light construction equipment, meanwhile, was flat year over year, the firm says.
CNH says an outlier in the construction market in the first half of this year was North America, where aggregated demand for equipment increased 8 percent.
The company also characterizes its first-half construction sector success as driven by favorable price realization and positive volume mix, mainly in North America.
