CNH Industrial Grows Revenues 7 Percent in 2018
CNH Industrial N.V. posted consolidated revenues of $29.706 billion for the full year 2018, a 7-percent increase compared to 2017 on a constant currency basis. Net sales of Industrial Activities were $27.831 billion, up 8 percent year over year. In the fourth quarter of 2018, consolidated revenues were $8.202 billion, in line with the same period in 2017, and up 3 percent on a constant currency basis. Net sale of Industrial Activities were $7.707 billion in the fourth quarter, flat compared to the fourth quarter of 2017.
Sales of construction equipment increased 7.1 percent to $814 million in the fourth quarter and jumped 19.4 percent to $3.021 billion as a result of increased end-user demand in all regions and favorable net price realization.
Full year 2018 adjusted EBIT was $91 million, a $107 million increased compared to 2017. The increase was the result of higher sales volume, favorable mix and positive net price realization more than offsetting raw material cost increases, mainly in North America. In the fourth quarter of 2018, adjusted EBIT was $32 million, with an adjusted EBIT margin of 3.9 percent. Results were primarily impacted by positive net price realization and manufacturing efficiencies.
The 2018 performance confirms the company’s profitable growth trajectory, despite a softer macroeconomic and business environment in the second part of the year, caused by escalating trade tensions and related tariffs across global markets, other economic and political uncertainties, including the outcome of the Brexit negotiations, and a general expected slowdown in global economic growth. The company expects net sales of Industrial Activities of approximately $28 billion in 2019.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.