CNH Industrial Construction Equipment, which includes the Case Construction Equipment brand, saw its net sales drop 29.7% year-on-year on a reported basis in Q3 2015 to €539.93 million ($591million).
The geographic distribution of net sales for the period was 55% NAFTA (US, Canada), 22% EMEA (Europe, Middle East, Africa), 14% LATAM (Latin America) and 9% APAC (Asia Pacific).
In Q3 2015, Construction Equipment’s worldwide heavy and light industry sales were down 17% and 7%,respectively, due to the continuation of the tough global trading climate. Industry light equipment sales were roughly flat in NAFTA and EMEA, and down in LATAM and APAC. Industry heavy equipment sales decreased in all regions, but primarily in LATAM and APAC.
CNH Industrial Construction Equipment’s worldwide market share was also flat compared to the prior year period, for both heavy and light construction equipment. Light equipment was down in NAFTA while flat to up in all other regions. Heavy equipment was flat in all regions except for LATAM, where municipality-driven demand declined as infrastructure investments, in which the Company has a significant position, slowed.
The company’s worldwide production levels were 4% above retail sales in the quarter, in-line with production seasonality. In LATAM, underproduction vs. retail was at 9% and production level was down 48% from Q3 2014. A similar production curtailment is expected for Q4 2015 in the region, as a result of poor demand conditions in the construction sector and an uncertain environment with BNDES PSI programs.
Operating profit of €33.8 million ($37 million) in Q3 2015 was recorded by CNH Industrial Construction Equipment, compared to €35.63 million ($39 million) for Q3 2014. This is said to be the result of cost containment actions and net price realisation in NAFTA, offset by the negative effect of lower sales volumes in LATAM. Operating margin increased 1.7% to 6.3%.