Strong construction equipment business helps CNH Industrial to 16% Q2 2018 sales rise

7044 CNH Industrial’s net sales increased by 16% in Q2 2018, mainly due to double-digit improvement in its construction and agricultural equipment businesses.

The Italian-headquartered, multi-industry group, whose Construction Equipment business includes the 394 CASE Construction Equipment brand, also saw its second quarter consolidated revenues rise by 15% to US$8.045 billion, with net income up 73% to $408 million, or $0.29 per share. Meanwhile, CNH Industrial’s net industrial debt decreased by 33% to $1.3 billion.

CNH Industrial Construction Equipment’s net sales increased 23% in the second quarter of 2018 compared to the second quarter of 2017 (up 22% on a constant currency basis), as a result of a favourable end-user industry demand environment, up 20% in light equipment and 34% in heavy equipment year-over-year.

In the quarter, the business’s production levels were 12% above retail demand, in line with the order book, which is up approximately 15% compared to the prior year period.

As a result of the sustained profitability improvement in the second quarter of 2018, CNH Industrial has updated its guidance for the full year 2018. It forecasts net sales from Industrial Activities to be unchanged at around $28 billion, and it tips net industrial debt at the end of 2018 to have improved to between $0.7 billion and $0.9 billion.