The company’s agricultural division (Case IH, New Holland, Steyr, Kongskilde), the largest contributor to CNH Industrial revenue, saw its net sales fall by 18.0% to US$2.5 billion in the second quarter, compared to the same three months of 2019.
The company says the decrease was driven by lower industry volumes linked to the Covid-19 pandemic, primarily in Europe, where the tractor and combine markets were down 25.0% and 23.0%, respectively.
The uncertainties regarding the Covid-19 pandemic remain, and for the first six months of this year CNH Industrial net sales (includes agriculture, construction, powertrains, commercial and special vehicles) fell by almost US$3.0 billion (-21.0%) to around US$11 billion. The company expects the end of year total to be down 15.0% to 20.0%.
Acting CEO Suzanne Heywood says CNH Industrial moves into the second half of 2020 with US$11.5 billion of liquidity. “This is the highest in our history, which gives us a solid foundation from which we can navigate this still uncertain and challenging period,” she says.
“As we do this, we will continue to prioritise looking after our people, supporting our dealers and customers and managing our supply chain. Our investments in digital and alternative fuel technologies continue to advance, including through our partnership with Nikola.”