The long anticipated results reported by CNH Industrial for the twelve months ended December 2024 show sales volumes are down US$5 billion
Worldwide sales for CNH Industrial in calendar year 2024, including leading badges Case IH and New Holland have been reported as consolidated revenue of US$19.84 billion, down 20% when compared to 2023.
Net sales of the Industrial Activities division, including c were US$17.06 billion in 2024, down 23% when compared to 2023 results. Full-year net income was US$1,259 million compared to 2023 net income of US$2,287 million.
Taking a line through the fourth quarter of 2024 to see where the agricultural sector market is heading didn’t leave analysts with a warm feeling as sales volumes suffered across most world markets.
North America saw industry volume slump for tractors with the over 106kW (140hp) market down 34% year-over-year when compared with Q4 2023. While tractors under 106kW (140hp) were down 10%. Combine harvester sales in North America were down 33%.
Meanwhile the agricultural sector markets in Europe, Middle East/Africa (EMEA) revealed tractor and combine demand was down 6% and 31%, respectively.
In the smaller volume market of South America tractor demand was down 5% while combine demand was down 21%. In the regional Asia Pacific market, which includes Australia, China helped to push up tractor demand by 10%, while combines ended up down just 1%.
Agriculture net sales decreased for the quarter by 31% to US$3.4 billion primarily due to lower shipment volumes on decreased industry demand across all regions and dealer destocking.
What CNH Industrial expects in 2025
The Company forecasts that 2025 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2024.
In addition, CNH Industrial is focused on driving down excess channel inventory primarily by producing fewer units than the retail demand level. Therefore, 2025 net sales will be lower than in 2024.
The company forecast lower production and sales levels will negatively impact its segment margin results. However, the Company’s past and ongoing efforts to reduce operating costs will partially mitigate the margin erosion.
CNH Industrial advises it is continuing to focus on reducing product costs through lean manufacturing principles and strategic sourcing. And says the Company will also carefully manage its SG&A and R&D expenses accordingly.
Consequently, the Company is providing the following 2025 outlook:
• Agriculture segment net sales down between 13% and 18% year-over-year, including currency translation effects
• Construction segment net sales down between 5% and 10% year-over-year, including currency translation effects
CNH Industrial results for 2024
