Down roughly 5% on the first three months of 2018, agricultural net sales (Case IH, New Holland and Steyr) decreased by around 4% during the first quarter of this year to US$2.49 billion (US$2.58 billion Q1 2018).
Improved sales volume from end-user replacement demand in the North America arable sector, and from sustained demand in Brazil, was partially offset by a slowdown of activity in Turkey and by extremely dry weather affecting harvest conditions in Australia.
The general sentiment in the agricultural end-markets remains muted in the short-term, is the message, primarily as a result of uncertainties related to unresolved trade tensions and the spill over implications of recent negative weather events in Australia and Northern Europe.
The good news for CNH Industrial is that net income rose by over 30% to a record US$264 million for the first three months of this year (US$202 million Q1 2018).
The company remains upbeat and confirms it is on track to meet earlier forecasts of 2019 industrial net sales of around US$28 billion.