Farms.com Home   Farm Equipment News

CNH Industrial Reports Record Net Income for Q2 2023

In its earnings release for Q2 2023, CNH Industrial reported net income of $710 million, up 29% year-over-year from $552 million in Q2 2022, which the company said was a record high. Diluted earnings per share were up 30% year-over-year to $0.52. Adjusted net income was $711 million, with adjusted diluted earnings per share of $0.52.

Net sales of Industrial Activities, which encompasses the company’s agriculture and construction segments, were up 6% year-over-year to $5.95 billion, mainly due to favorable price realization, offsetting adverse currency conversion impacts, CNH Industrial said.

For ag equipment alone, net sales were $4.89 billion, an increase of 4% over the same period last year due to favorable price realization, partially offset by lower volume. In North America, industry volume for tractors over 140 HP was up 21% year-over-year and was down 8% for tractors under 140 HP. Combines were up 27% from prior year.

Gross profit margin of Industrial Activities was 25.0% versus 22.0% in Q2 2022, a result of favorable price realization and improving operating performance of CNH Industrial’s production system. For the ag equipment segment, gross profit margin was 27.0% compared to 23.4% in Q2 2022, which CNH Industrial CEO Scott W. Wine called a record.

For the 6 months ended June 30, 2023, the company reported consolidated revenues of $11.9 billion, an increase of 11% year-over-year and 13% at constant currency. Net income for the first half was up 35% year-over-year to $1,196 million, with adjusted diluted earnings per share of $0.87, an increase of 35%.

Regarding its Industrial Activities, CNH Industrial reaffirmed its outlook for 2023 of net sales being up 8-11% year-over-year, including the effects of currency translation.

Source : Farm Equipment

Trending Video

Wheat Yields in USA and China Threatened by Heat Waves Breaking Enzymes

Video: Wheat Yields in USA and China Threatened by Heat Waves Breaking Enzymes

A new peer reviewed study looks at the generally unrecognized risk of heat waves surpassing the threshold for enzyme damage in wheat.

Most studies that look at crop failure in the main food growing regions (breadbaskets of the planet) look at temperatures and droughts in the historical records to assess present day risk. Since the climate system has changed, these historical based risk analysis studies underestimate the present-day risks.

What this new research study does is generate an ensemble of plausible scenarios for the present climate in terms of temperatures and precipitation, and looks at how many of these plausible scenarios exceed the enzyme-breaking temperature of 32.8 C for wheat, and exceed the high stress yield reducing temperature of 27.8 C for wheat. Also, the study considers the possibility of a compounded failure with heat waves in both regions simultaneously, this greatly reducing global wheat supply and causing severe shortages.

Results show that the likelihood (risk) of wheat crop failure with a one-in-hundred likelihood in 1981 has in today’s climate become increased by 16x in the USA winter wheat crop (to one-in-six) and by 6x in northeast China (to one-in-sixteen).

The risks determined in this new paper are much greater than that obtained in previous work that determines risk by analyzing historical climate patterns.

Clearly, since the climate system is rapidly changing, we cannot assume stationarity and calculate risk probabilities like we did traditionally before.

We are essentially on a new planet, with a new climate regime, and have to understand that everything is different now.