CNH Industrial, parent of the Case Construction Equipment and New Holland Construction brands, has released its second-quarter results.
In total, with all plants and depots up and running by the end of the second quarter, CNH Industrial reported consolidated revenues of $5.6 billion, net income of $361 million and adjusted net loss of $85 million. Net debt of Industrial Activities was at $2.3 billion, with positive free cash flow of $97 million helped by end-demand resuming in most markets and the company’s cost reduction and cash preservation measures, it says. CNH ended the quarter with available liquidity of $11.5 billion.
Construction results
Construction’s net sales totaled $420 million in the second quarter of 2020, down 45 percent compared to the second quarter of 2019 (down 41 percent on a constant currency basis), as a result of weaker market conditions due to the Covid-19 pandemic, continued channel inventory destocking actions, mainly in North America, and negative price realization.
Adjusted EBIT loss was $87 million ($25 million profit in the second quarter of 2019). The decrease was driven by lower volumes and negative fixed cost absorption due to lower production levels, with destocking actions and unfavorable price realization partially offset by cost-containment actions.
Source: CNH Industrial
