First publishedon www.AggBusiness.com
Industrial’s Construction Equipment business segment – which includes the CASE
Construction Equipment brand – saw its sales increase 18% in the third quarter of 2018, compared to the same period of 2017. The healthy rise to sales worth $726 million, compared to $618 million in Q3 2017, was said to be due to positive net price realisation and favourable end-user demand, primarily in NAFTA (North America Free Trade Agreement) and APAC (Asia-Pacific) regions.
The business segment’s adjusted Q3 2018 EBIT (earnings before interest and taxes) was US$26 million, a $24 million increase compared to Q3 2017. An adjusted EBIT margin increase of 3.3 p.p. to 3.6% was said to be a result of higher sales volumes, a favourable product mix and net price realisation, more than offsetting raw material cost increases. In the analysed quarter, CNH Industrial Construction Equipment’s production levels were 13% above retail demand, in anticipation of “fourth quarter retail seasonality”.
CNH Industrial as a whole reported 2018 third quarter consolidated revenues of $6.7 billion, with net income up 285% to $231 million, or $0.16 per share. The Group’s industrial debt stood at $2 billion.