CNH Industrial Q2 Revenue Up 17.5%

CNH Industrial, parent company of Case Construction Equipment, has released its second quarter results, highlighted by a 17.5 percent increase in revenue over last year.

In North America specifically, Construction net sales increased by 10 percent, and the construction order book was up more than 20 percent year over year in both heavy and light sub segments.

“Our robust second quarter results highlighted the CNH Industrial team’s focus on execution, as they excelled in both tactically ensuring we continued to meet customer commitments and making notable progress on our strategic initiatives," said Scott W. Wine, CNH Industrial CEO. "These considerations and strong price realization contributed to our impressive sales and adjusted diluted EPS growth, up 17.5 percent and 16.2 percent respectively. Pricing, volumes, and favorable mix offset significant cost escalation and gross profit increased $174 million year over year. Component shortages again impacted production, resulting in Free Cash Flow of $404 million which, though a tremendous sequential improvement, was still down almost 50% versus Q2 2021. Despite this, we continue to expect to deliver more than $1 billion of free cash flow for 2022.

"Looking forward, we have exciting new products to unveil at the upcoming trade shows and our Tech Day late in the year," Wine said. "Raven and our Precision team are making great strides and helping to drive Agriculture’s growth, and Construction Equipment, bolstered by Sampierana, is significantly increasing its profitability. With this ever-stronger foundation, we expect to meet our Full Year guidance, but anticipate a decidedly less advantageous climate for the next several quarters. The strengthening US dollar is impacting soft commodity prices, risking further deterioration in farmer sentiment and income, while we see the likelihood of declining European industrial demand due to the war in Ukraine, energy risk and inflation. In the Americas, steady demand from cash crop customers indicates that the market may be more stable, but overall we are positioning for a recession. Our team has proven that, regardless of the environment, they will continue to execute our strategic priorities and deliver for our customers and shareholders.”

Source: CNH Industrial