CNH Industrial breaks $1 billion mark for second quarter construction net sales
The second quarter of 2023 has proved record-breaking for CNH Industrial, especially in the construction sector. A general increase in financial results across the board was accompanied by several new highs in net sales and margins for construction-related activities.
CNH, the parent company of CASE Construction Equipment and New Holland Construction, reported consolidated revenues of $6.57 billion in the second quarter, ending June 30, 2023, an increase of 8 percent from the same period in 2022. Net sales for Industrial Activities reached $5.95 billion, up $341 million from Q2 of 2022.
In the construction sector CNH reported a new record for sales, breaking the $1 billion mark for the very first time and posting $1.064 billion in net sales, a 19 percent jump from 2022. Adjusted EBIT margin, at 6.8 percent, also reached a new high, the company stated.
Construction net sales were driven upward by favourable price realization and positive volume/mix, mainly in North America, with some offset from lower net sales in South America. Global industry volume for construction equipment was down 9 percent year over year in the second quarter for heavy construction equipment. Light equipment was flat. Aggregated demand increased 8 percent in North America.
"The CNH Industrial team delivered great results in Q2 as we capitalized on favorable market fundamentals and solid operational execution," said CNH Industrial CEO Scott Wine. "Our Agriculture segment set margin records, and for the first quarter in our history, Construction net sales surpassed $1 billion. The CNH Business System is becoming a way of life, engaging our employees in improving processes and removing unnecessary costs. We are transforming the business and expanding our technology investments to drive growth and improve through-cycle margins."
Through six months, CNH Industrial has reported consolidated revenue of $11.909 billion, an increase of 11 percent over 2022 year-to-date. Construction net sales to the end of Q2 have reached $1.913 billion, up 13 percent.