CNH reports profitable 2023 but foresees slower conditions

CNH Industrial N.V., a United Kingdom-based global maker of agricultural and construction equipment, has reported fourth quarter 2023 net income that was down about 2 percent year on year. For the full year, however, the company reports net income that rose by nearly 3 percent compared with the prior year.

CNH (which formerly stood for Case New Holland) recorded some $24.7 billion in revenue last year, up 5 percent year on year. Its full-year net income of more than $2.38 billion compares with its 2022 net income of slightly less than $2.04 billion.

The company's construction equipment sector was a solid performer in the fourth quarter of last year, with its earnings before interest and taxes (EBIT) margin up by 5.8 percent compared with late 2022.

“Two years ago, we established ambitious margin targets for our agriculture and construction segments, which we achieved earlier than planned,” says Scott W. Wine, CEO of CNH.

“With more challenging end markets in the fourth quarter, robust contributions from our cost reduction focus and disciplined commercial execution drove margin expansion, and we will remain aggressive on these fronts moving forward."

In the company’s construction equipment sector, which also serves the demolition and scrap recycling markets, CNH global unit sales volume decreased year on year in the fourth quarter of 2023, with demand down only about 2 percent in North America, compared with declines of from 6 percent to 25 percent in other parts of the world.

“Construction net sales increased for the quarter by 9 percent to $1.07 billion, driven by favorable price realization and positive volume and mix mainly in North America,” CNH says.

In the year underway, CNH forecasts global sales will be lower in both the agriculture and construction equipment markets when compared to 2023, with construction equipment industry retail sales to be down around 10 percent when compared to 2023.