Agricultural (Case IH, New Holland, Steyr) net sales decreased 7.0% during the three month period to $3.09 billion ($3.31 billion same quarter in 2018). The company reckons this was due mainly to lower sales volume in Europe and the rest of the world.
The concern was also affected by higher raw material costs and tariffs, and increased product development spending driven by investments in precision farming and the introduction of Stage V engines.
Looking ahead, trade tensions remain unresolved, and negative impacts from recent weather events (in North America, Australia and Northern Europe) have impacted planting and harvesting patterns.
Cyclical replacement demand remains stable though, with used equipment inventories at low levels supporting new equipment sales in North America.
Total CNH Industrial revenues for the first six months of this year were down from $14.8 billion in 2018 to $14 billion, but the company reckons to be on target to achieve total 2019 revenues of $27 to $27.5 billion.