CNH Industrial reported first quarter 2021 consolidated revenues of US$7.5 billion, up 37% compared to the first quarter of 2020.
General improvement in market demand and in customer sentiment reflected increased economic activity globally and stronger commodity prices. CNH Industrial said it remains cautious about the future impacts on its end-markets and operations of restrictions on social interactions and business operations to limit the resurgence of the COVID-19 pandemic.
“Furthermore, rising demand is adding pressure to our supply chain, requiring diligent coordination to keep our production at desired levels,” the company said.
“Adverse market trends in raw materials (particularly steel), freight and logistics costs have impacted our product cost performance in the first quarter. Increasing input costs are expected in the second quarter, and pressure is likely to continue throughout the remainder of the year.”
The company’s order book in Agriculture more than doubled year-over-year for both tractors and combines, driven by strong growth in North America for tractors, and in South America for combines.
In North America, tractor demand was up 53% for tractors under 140HP, and up 15% for tractors over 140HP; combines were up 17%. In Europe, tractor and combine demand were up 20% and 14%, respectively. South America tractor demand was up 31% and combine demand was up 28%. A significant increase in demand for tractors and combines was also noted in Rest of World.