Decline in demand drives double-digit revenue slide for CNH Industrial in first quarter of 2024
A broadly reduced level of industry demand has contributed to a decline in revenue for CNH Industrial through the first quarter of 2024, with retail sales expected to remain down compared to the previous year.
Net sales of Industrial Activities for CNH Industrial were $4.131 billion through the three months ending March 31, 2024, a drop of 14 percent from 2023. That contributed to a decline of 10 percent in consolidated revenue, down to $4.818 billion from more than $5 billion in Q1 of 2023.
Net income is down 17 percent to $402 million, and adjusted diluted EPS has declined slightly, from $0.35 to $0.33 per share.
Globally, demand for heavy construction equipment declined 1 percent, while light construction dropped 8 percent. North American demand was down 6 percent overall through the three month period. Net sales for CNH construction equipment dropped by 11 percent to $758 million. However, gross profit margin was 17.4 percent, an increase from the previous year.
"The CNH team navigated a declining market environment in the first quarter, as lower industry demand persisted especially in South America and Europe. Anticipating these headwinds, we are continuing to improve what we can control - production efficiency, disciplined commercial execution, judicious SG&A reductions, and thoughtful product and technology investments," said CNH Industrial CEO Scott W. Wine. "As always, the team is meeting challenges head-on and working diligently to deliver solutions for our customers. I would like to thank our employees and dealers for their unwavering support of the world's farmers and builders."
CNH Industrial expects global industry retail sales to remain down compared to 2023, with construction likely to be around 10 percent lower year-over-year.
