CNH Industrial Construction Sales Up 42%

Sales in the construction sector totaled $3.1 billion in fiscal 2021, reports CNH Industrial, up 42 percent over the 2020 fiscal year. The company cited favorable price realization, higher demand, and lower “destocking” by dealers and distributors. The financials include numbers from Iveco Group, which was spun off on January 1, 2022.

Global demand for construction equipment was up 14 percent, with the heavy sub-segment up 16 percent and light up 13 percent. In North America, demand was up 23 percent.

Overall revenues for the company were up 28 percent to $33.4 billion in 2021. Net income was $1.8 million.

Said CEO Scott W. Wine in a prepared statement:

“I am proud of, and profusely thankful for, how our CNH Industrial team managed through a difficult year. Between external challenges: Covid, supply chain, etc. and internal opportunities: spin, Raven acquisition and integration, and our customer focused reorganization, they rose to every occasion while still exemplifying our renewed focus on delivering for our customers and dealers. Their efforts drove Company record revenue and earnings per share, and it is especially rewarding to generate such results in our final year as a combined entity. This performance represents a solid foundation for both Iveco Group and CNH Industrial’s future success, particularly as it includes our second consecutive year of net cash, with over $1.7 billion of positive free cash flow of Industrial Activities for 2021. In Q4 we outperformed expectations by managing our supply chain, specifically microchip shortages, better than anticipated, and while these pressures are likely to persist, so is our team’s demonstrated ability to overcome them. With continued strength in our end markets and order books, and a comprehensive strategy for the future, CNH Industrial is excited to enter 2022 as a pure play in agricultural and construction equipment.”

Excluding Iveco, 2021 full year revenues were $19.5 billion.

The 2022 outlook calls for net sales to grow between 10 and 14 percent.

Source: CNH Industrial