Revenues fall at CNH

A drop of 4.1% in consolidated revenues has been reported by CNH Industrial for the fourth quarter of 2015 compared with the same period a year earlier, although it claimed it closed the year with strong results.

It pointed to operating profit for its industrial activities at US$563 million (€515.82 million) for the quarter – an increase of 50% on a year earlier.

Consolidated revenues at CNH, which includes the Case and New Holland brands, were US$7.14 billion (€6.55 billion) for the fourth quarter which it said was down 4.1% compared to fourth quarter of 2014 on a constant currency basis, and down 14.6% on a reported basis.

CNH said that its full-year 2015 consolidated revenues were US$25.91 billion (€23.75 billion), down 9.2% compared to 2014 on a constant currency basis, and down 20.4% on a reported basis.

Net sales decreased in construction equipment, which it said was primarily a result of negative industry volumes in the Latin American region.

Construction equipment’s net sales totalled US$609 million (€558.19 million) for the fourth quarter of 2015, a decrease of 18.7% compared to the same period in 2014 on a constant currency basis, and down 23.9% on a reported basis, with demand weakness in the NAFTA (North American Free Trade Agreement) and Latin American markets.

In the full-year figures for 2015, construction equipment’s net sales were US$2.54 billion (€2.33 billion), down 18.3% compared to 2014 on a constant currency basis, and down 24.0% on a reported basis. CNH blamed this on reduced industry demand, primarily in Latin America and the Asia Pacific region.

Construction equipment’s operating profit was US$18 million (€16.50 million) for the fourth quarter of 2015. In the full year 2015, Construction Equipment reported operating profit of US$90 million (€82.48 million), a 14% increase compared to 2014.

CNH said that in 2015, worldwide construction equipment industry units for heavy products were down 18%, while light products dropped 4%, compared to 2014. It said decreased industry volumes in Latin America and Asia Pacific were partially offset by moderate growth in the NAFTA region.

It added that demand for heavy and light construction equipment was flat in EMEA (Europe, Middle East and Africa). Its construction equipment’s worldwide market share was flat overall year-on-year, it reported, with a decrease in Latin America and NAFTA, offset by an increase in market share in Asia Pacific and EMEA.

The roles of Case and its sister-company New Holland were redefined last year, with Case concentrating on the construction industry, with New Holland’s focus on the agriculture sector.