Owner of New Holland and Case IH is growing; but how and where?
CNH Industrial (encompassing New Holland and Case IH among other brands) announced that revenues were up 15% in the second quarter of this year (compared with the same period of 2017).
This was “primarily driven by double-digit improvements in the agricultural and construction equipment segments”.
Revenue for the second quarter of 2018 amounted to just over $8 billion.
Net sales of agricultural equipment increased by 20% in the second quarter of 2018, compared to the second quarter of last year (up 18% on a ‘constant currency’ basis).
CHN Industrial said this was due to “a favorable end-user demand environment, with NAFTA row-crop industry demand up 9% in high-horsepower tractors and 26% in combine harvesters”.
The anticipated increase in raw material costs was apparently offset by manufacturing efficiencies. Product development spending, related primarily to precision farming and compliance with Stage V (engine) emissions requirements, increased by 10%.
Net sales of construction equipment increased by 23% in the second quarter of this year, compared to the same period of 2017 (up 22% on a ‘constant currency’ basis).
This, says CNH Industrial, was due to “a favorable end-user industry demand environment” – reportedly up 20% in light equipment and 34% in heavy equipment year-over-year.
Meanwhile, net sales of commercial vehicles grew by 11% during the second quarter (compared to the second quarter of 2017 – up 6% on a ‘constant currency’ basis). This, claims CNH Industrial, was as a result of a “favorable product mix” and positive pricing in in many regions.
Net sales of equipment from CNH Industrial’s powertrain division increased by 7%; sales to external customers accounted for 49% of the total.
Financial services’ revenues totalled $498 million in the second quarter of 2018 – a decrease of 1% compared to the same period of 2017.
Family of brands
It’s worth noting that CNH Industrial encompasses the Case IH, New Holland Agriculture and Steyr brands in the agricultural equipment sector.
Its construction machinery portfolio is split between Case and New Holland Construction. Iveco is its commercial vehicle brand.
Iveco Bus and Heuliez Bus are its bus and coach brands; Iveco Astra produces quarrying and construction vehicles (specialist trucks).
Magirus is CNH Industrial’s firefighting vehicle brand, while Iveco Defence Vehicles sells into the defense and civil protection sectors. Last but not least is FPT Industrial; it is the groups engine brand.