Construction sales and order book up for CNH
By Andy Brown04 May 2022
Agricultural and construction business CNH Industrial has reported a large rise in revenue and sales in its financial results for the first quarter of 2022, with consolidated revenues of US$4.6 billion, a 14% increase from the same quarter last year.
Construction sales in the first quarter for the company’s Case brand were US$803 million – a 22% increase from the same quarter last year.
The company reported that its construction order book was up more that 80% year over year in both heavy and light sub-segments, with increases in all regions.
In the first quarter of 2022 sales were down 33% in Asia Pacific, mainly due to falling demand in China, but demand was up by 4% in North America, 9% in EMEA and 30% in South America.
The financial report added that the increase in net sales of 22% was due to higher industry demand in main markets, market share growth, and better price realization – primarily in North America and South America.
Gross profit margin was 13.3%, down 1.0.% compared to Q1 2021, mainly due to supply chain disruption costs.
“Order books remain exceptionally strong, up almost 40% in agriculture and 80% in construction, as demand remained healthy. Our thoughts are with our employees, customers, and dealers directly impacted by the war in Ukraine,” said Scott W. Wine, Chief Executive Officer, CNH Industrial.
“Logistics pressures and semiconductor shortages, which are not unique to CNH Industrial, are expected to remain a headwind through the year, but I am confident in our team’s ability to navigate the current environment as evidenced by our results during the first quarter.”