CHN International will manage its construction business as a distinct business with increased autonomy, naming Humayun Chishti president. He had been finance business partner for construction. He will be responsible for profitability of the segment.
The company has structured its leadership team to focus on profitable long-term growth in the agricultural segment.
CNH International sales for the second quarter of 2024 were $5.5 billion, down 16% from $6.6 billion in the same period a year ago. Agriculture sales were $3.9 billion; construction accounted for one-fourth of that, $890 million.
Adjusted net income was down 31% to $485 million for $0.52 diluted earnings per share.
The UK-based manufacturer cited lower demand and reduced dealer inventory requirements. Price increases were flat for Construction, which includes Case Construction Equipment.
Sales in construction were $890 million in the quarter, down 16% from Q2 2023. Global industry volume for construction equipment decreased 5% year-over-year in the second quarter for heavy construction equipment and 4% for light equipment. Aggregated demand was flat in North America. Gross profit margin for construction was 16.5%
The company’s lowered its outlook for the remainder of the year. Construction sales are expected to be down 15% to 20% year-over-year; its earlier projection was a decline of 7% to 11%.
