Latin America hits CNH sales
By Chris Sleight31 July 2015
CNH Industrial’s sales of construction equipment came to US$ 740 in the second quarter of the year, a -20.5% decline on the same period last year. The division made an operating profit of US$ 35 million, which was a +7% improvement on Q2 2014.
The company said that its downturn in sales was due to lower volumes, particularly in Latin America, which is dominated by the Brazilian market.
CNH Industrial, which markets construction equipment under the Case brand said its sales of light equipment were down just -1% worldwide in the quarter compared to the same period last year, but that heavy equipment sales were down -18%. The company said sales of heavy equipment were lower in every region of the world during the quarter, with Latin America and Asia Pacific particularly heavily impacted. Sales of light equipment were also down in Latin America and Asia Pacific, but these falls were offset by growth in the Europe, Middle East & Africa (EMEA) and North Atlantic Free Trade Area (NAFTA) regions.
A company statement said, “Construction Equipment’s worldwide market share was mainly in line with prior year for both heavy and light construction equipment in all regions except for LATAM (Latin America), where municipality-driven demand declined significantly as infrastructure investments, where the company has a significant position, slowed.
"Construction Equipment’s worldwide production levels were 16% above retail sales in the quarter to accommodate seasonal shutdowns scheduled for the third quarter in NAFTA and EMEA."