Case, New Holland sales up 6%

CNH Industrial posted first-quarter sales in its construction segment of $849 million, up 6 percent from the $803 million recorded in Q1 2022. The construction segment includes the Case and New Holland brands. The increase was driven by favorable price realization and positive volume and mix in North America and Europe. Negative factors included lower net revenue from South America, and ceased activities in China and Russia. According to the company, global industry volume for construction equipment decreased in both heavy and light sub-segments year over year in the first quarter, with heavy down 16 percent and light down 4 percent. Gross profit margin for construction was 15.9 percent, up from Q1 2022, mainly due to higher volume, improved fixed cost absorption, and favorable price realization. Higher product costs driven mainly by higher raw material costs and manufacturing costs are having negative effects on margin. “Our Construction performance is progressing well, especially in North America where backlog supports continued growth,” said Scott W. Wine, CEO, in a statement. As a whole, CNH Industrial posted $5.34 billion in revenue in the quarter, up 15 percent from Q1 2022. The company updated its net sales guidance for FY 2023 to an increase between 8 percent and 11 percent compared to FY 2022. It cited strong North America row crop demand, continued pricing strength, and a solid order backlog.