CNH Industrial sales for the third quarter rose 3.6 percent over the same period in 2019 to $6.107 billion. Construction sales, which includes Case Construction Equipment, were down 13.3 percent for the same periods, to $576 million from $664 in the third quarter of 2019.
Adjusted net income for the third quarter was $156 million.
“CNH Industrial’s Q3 2020 results were positively impacted by a general improvement, versus the first half of 2020, in market demand across most of our businesses and countries and, in particular, in the agriculture sector in North America,” said Suzanne Heywood, chair and acting CEO, in a prepared statement. “Results were also supported by our continued cost containment and cash preservation actions. As a result, we have reduced working capital in a quarter that is usually seasonally weak, have generated positive free cash flow of $1.0 billion, and have increased our available liquidity to $13.2 billion.
“In the quarter we have continued to prioritize looking after our people, supporting our dealers and customers, and managing our supply chain. We expect these issues to remain as priorities during the coming months given the global spiking of Covid-19.”
Global demand of construction end-markets showed 10 percent and 12 percent increases in the compact and service equipment subsegment and in general construction equipment, respectively. Road building and site preparation equipment decreased 7 percent. Compact equipment was up 14 percent in North America.
The company sited “channel inventory destocking actions and a weaker pricing environment,” particularly in North America, as primary factors in the sales decline. The reduction on channel inventory is more than 35 percent since the beginning of the year, the company said.
Sales in the construction segment for the first nine months of the fiscal year are down 31.2 percent to $1.418 billion compared to $2.061 billion for the same period in 2019. Corporate sales for the first nine months are down 14.3 percent to $16.25 billion.
Source: CNH Industrial
