CNH Industrial released its third quarter results, posting net revenues of €6.2 billion and a net profit of €248 million ($334.7 million).
Revenues were down 1.5 percent over third-quarter 2013, but increased 5.4 percent on a constant currency basis as growth for the agricultural equipment, trucks and commercial vehicles and powertrain businesses was partially offset by more challenging trading conditions in the construction equipment business.
The company’s third-quarter 2013 net profit was down €43 million ($58 million) against the same period in 2012.
CNH’s Agricultural and Construction Equipment sector had revenues of €3.9 billion ($5.3 billion) for the quarter, down 4.9 percent over 3Q 2012. Growth in the Agricultural Equipment market offset the challenging conditions for Construction Equipment, whose net revenues decreased 17.1 percent over 3Q 2012. Worldwide Construction Equipment production was 13 percent above retail sales in the quarter, and the company has taken action in the fourth quarter to adjust production closer to current retail demand.
Trucks and Commercial Vehicles had revenues of €2.1 billion ($2.8 billion) in the third quarter, an increase of 1.9 percent over the same period in 2012. The segment delivered a total of 31,436 vehicles, an 8.6 percent increase over 3Q 2012.
Powertrain reported 3Q revenues of €762 million ($1.02 billion), an increase of 18 percent over the same period in 2012. The segment sold 129,174 engines, representing a 20.4 percent increase year-over-year.
The company confirmed its 2013 guidance, expecting revenues to increase between 3 and 4 percent, a trading margin between 7.5 and 8.5 percent, and net industrial debt between €1.4 billion and €1.6 billion ($1.9 billion and $2.2 billion).