While the fourth quarter of 2023 brought a slowdown in growth for CNH Industrial, full-year results still show a modest increase in revenue bolstered by steady improvements for the construction business.
CNH Industrial reported total consolidated revenue of $24.687 billion through the 2023 fiscal year, an increase of 5 percent over its 2022 results. Net income for the 12-month period was up by 17 percent to $2.383 billion.
In the fourth quarter of 2023, CNH Industrial consolidated revenue declined slightly, dropping to $6.7932 billion, a drop of 2 percent. Net income nudged upwards by 4 percent in the quarter.
CNH said the decline was mainly due to lower volume and mix in the agriculture sector. The construction business, meanwhile, continued to develop. Net sales of construction equipment rose by 9 percent in the fourth quarter, breaking $1 billion thanks to favourable price realization and mix, primarily in North America.
"Two years ago, we established ambitious margin targets for our Agriculture and Construction segments, which we achieved earlier than planned. These results, in conjunction with record full-year revenue and net income, reflect the CNH team's tireless efforts to simplify the company, expand through-cycle margins, integrate world-class technology with our great iron, and put our customers at the centre of everything we do.," said CNH CEO Scott W. Wine. "With more challenging end markets in Q4, robust contributions from our cost reduction focus and disciplined commercial execution drove margin expansion, and we will remain aggressive on these fronts moving forward. I have tremendous confidence in this CNH team's ability, regardless of market conditions, to create a bright future for our company, our customers, and our dealers."
Moving into 2024, CNH says it expects markets to be slower due to overall market conditions. It expects the construction segment to experience reduced sales of between 7 and 11 percent year-over-year.
