Strong second quarter figures from CNH

CNH Industrial has reported a strong second quarter performance with consolidated revenues of $8.9 billion (up 60% compared to Q2 2020) and net income of $699 million.

The company’s interests include the manufacture of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles, in addition to a broad portfolio of powertrain applications. Its brands include Iveco, Case Construction, New Holland Agriculture and FPT Industrial.

A Cursor 9 engine from FPT Industrial.

Scott Wine, Chief Executive Officer, said: “Despite ongoing supply chain challenges and inflationary pressures, the continued strength of our end markets in conjunction with aggressive pricing activity, margin expansion initiatives, and solid teamwork propelled us to record second quarter earnings.

“Our industry is clearly in a cyclical upturn and the sound fundamental performance of our businesses and operations is enabling us to capture much of the benefit. With the acquisition of Raven Industries, the largest in our company’s history, we are adding significantly to our precision agriculture capabilities and establishing the foundation for building this into a sustainable competitive advantage.

“We also began the first phase of our organization redesign, directed both at eliminating bureaucratic obstacles to customer centricity and to positioning each business in preparation for the spin.”

In a statement the company said: “Continued recovery across our industrial end markets supported our strong performance in the second quarter. Higher commodity prices stimulated demand for agriculture equipment while supply chain difficulties affected raw material and component costs and

availability.

“Global supply chain remains unstable and will require continued diligent coordination to work through increasing input costs and logistics pressures which are expected to extend through the second half of the year.”

It added that the order book in agriculture more than doubled year over year for tractors with strong dealer order collection in all regions, particularly in North America, and more than tripled for combines, with the strongest growth in North America and South America.

It said the construction order book was up year over year in both Heavy and Light sub-segments, with increases in all regions and particularly in North America and Europe.

Truck order intake in Europe was up 150 % year over year, with light duty trucks up 141 %, and medium and heavy-duty trucks up 172 %, the company added.

Outlining its 2021 outlook the company said it expects “solid demand to continue across regions and

segments. In the second half of the year, increased impact of raw material and continued freight and logistics costs will be partially offset by positive price realization.”