CNH Industrial, the company behind agricultural machinery brands Case IH and New Holland, reported a net income of $310 million for the third quarter, marking a substantial 43% decline compared to the same period in 2023. The company’s revenue also took a hit, dropping 22% to $4.6 billion.
In the agricultural sector, net sales fell by 24%, reaching $3.31 billion due to lower demand and reduced sales volumes. Adjusted earnings before interest and taxes (EBIT) dropped 48% to $336 million. In North America, demand for tractors under 140 hp dropped by 18%, while demand for tractors over 140 hp fell by 17%. Harvester sales in the region declined even more sharply, down 29%.
In the Europe, Middle East, and Africa (EMEA) markets, sales of tractors and harvesters dropped by 20% and 50%, respectively. In South America, demand was also affected, with tractor sales down by 12% and harvester sales by 32%.
The construction segment of CNH faced similar challenges, with net sales declining by 28% to $687 million.
CNH Industrial CEO Gerrit Marx commented on the situation: “CNH is adapting to the challenging market conditions facing farmers worldwide, focusing on operational improvements and meeting customer needs.” He also noted the need to adjust dealer inventories, which remain high and will require additional efforts to align with retail demand.
This adjustment reflects the industry’s response to global economic instability and demand fluctuations in the agricultural and construction sectors. CNH is actively seeking strategies to mitigate these impacts and maintain its competitive edge in a volatile market.
