For the full year 2024, CNH's consolidated revenue fell 20% to $19.8 billion.
CNH Industrial
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CNH Industrial’s fourth-quarter and full year 2024 construction-equipment revenue was down year-over-year, as the parent company for Case and New Holland faced a declining market and dealers trying to reduce inventory.
Consolidated revenue for the fourth quarter came in at $4.88 billion, down 28% compared to the company’s 2023 fourth quarter. Net income for the quarter was also down 70% to $176 million. The company said it saw lower shipment volumes due to declining demand and dealers trying to move inventory.
For the full year 2024, consolidated revenue fell 20% to $19.8 billion, and net income for the year was down 45% to $1.3 billion.
“Our proactive and ongoing efforts to align our business structure with the current industry environment have allowed us to deliver our products with reasonable margin erosion,” said Chief Executive Officer Gerrit Marx. “The challenging market conditions will continue at least through the first half of 2025, and we will keep production levels fairly low by design to drive channel inventory down further. I am confident that our continuing efforts to simplify, streamline and raise the quality of our operations prepare us well for the regional cycle dynamics ahead.”
The company’s construction-equipment revenue was down 33% in its fourth quarter to $718 million, though its gross profit margin in the segment remained unchanged at 14.8%. The company saw a construction-market decline and dealer destocking, primarily in North America.
Construction revenue for the full year was down 22% to $3.1 billion, though gross profit margin was up from 15.6% to 16.3%. The company reported 60% of its full year construction revenue came from its light construction equipment business, while 38% came from heavy equipment.
According to CNH Industrial, North American industry volume for heavy and light construction equipment was flat year-over-year in the fourth quarter. The company forecasts 2025 industry volumes to decline compared to 2024.
As it plans to lower excess channel inventory through reduced production, CNH Industrial expects its 2025 construction consolidated revenue will be down 5%-10% year-over-year. Dealer inventory in the fourth quarter was reduced by around $700 million.
During the earnings call, CNH Industrial CFO Oddone Incisa said the company is looking at tariffs as one potential headwind in 2025.
“We have done a lot of analysis on our global material flows, and as everyone else, we have run some sensitivities at different tariff levels,” said Incisa. “We have several options at our disposal for dealing with tariffs such as resourcing components and passing the cost in our pricing. One of the pillars of our strategic sourcing program is to have global flexibility, including dual sourcing where that makes sense.
“What we will actually do depends on the exact level of tariffs on specific components, relative exchange rate impacts, competitive positioning and the expected duration of the tariffs. We are prepared to act as it is needed.”
