CNH Industrial Grows Revenues 10 Percent in 2017
CNH Industrial posted consolidated revenues of $27,361 million for the full year of 2017, compared to $24,872 million in 2016, a 10-percent year-over-year hike. Net sales of the Industrial Activities division were $26,168 million for the year, up 11 compared to 2016.
In the fourth quarter of 2017, consolidated revenues were $8,102 million, a 15.8-percent increase compared to $6,998 million in the fourth quarter of 2016. Net sales of Industrial Activities were $7,798 million in the fourth quarter, a 17-percent year-over-year increase.
Net income was $313 million for the full year for the full year of 2017.
Operating profit of Industrial Activities was $1,519 million compared to $1,291 million in 2016, with an operating margin of 5.8 percent, up 0.3 percentage points year over year.
Construction Equipment’s net sales increased 14 percent in the full year of 2017, up 13 percent on a constant currency basis, because of higher industry volume in all regions except Europe Middle East and Africa. In the fourth quarter, net sales increased 36 percent compared to the fourth quarter of 2016, driven by market growth in all regions.
Full year operating profit was $21 milion compared to $2 million in 2016, with an operating margin of 0.8 percent. The global order book in Construction Equipment remains solid with an increase year over year of more than 30 percent.
In 2018, the company expects worldwide demand for agricultural equipment to improve with all regions flat to up 5 percent on average. Construction equipment demand is forecasted to be up 5 to 10 percent in Latin America and Asia Pacific, while remaining relatively flat to up slightly in EMEA and North America. The company expects full year net sales of Industrial Activities to be between $27 billion and $28 billion.
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.