Sales of agricultural equipment declined 9.9%, from $2.49 billion during the first period of 2019 to $2.24 billion during the first 3 months of 2020.
CNH Industrial reported on May 6 that its consolidated revenues for the first quarter 2020 ended March 31 were $5.5 billion, down 15% vs. the first quarter 2019. The company reported a net loss of $54 million compared to net income of $264 million for the same period last year.
Net sales of $5 billion in the first quarter of 2020 were down 17% compared to the first quarter of 2019 (down 14% on a constant currency basis), due to adverse COVID-19 impact on market conditions across all regions, coupled with previously announced actions to reduce dealer inventory levels.
Agricultural Equipment Segment
Sales of agricultural equipment declined 9.9%, from $2.49 billion during the first period of 2019 to $2.24 billion during the first 3 months of 2020. According to the company, the decrease was driven by lower industry volumes across all geographies and further deterioration linked to the COVID-19 outbreak. These factors were coupled with actions to reduce dealer inventories in North America and were partially offset by positive price realization across all regions.
Adjusted EBIT was $24 million, a $144 million decrease compared to the first quarter of 2019. Positive price realization, disciplined cost management and favourable purchasing performance were more than offset by lower wholesale volume and market and product mix, negative fixed cost absorption (primarily in Europe) due to plant shutdowns, higher product costs, and costs associated with product quality actions. Foreign exchange impact was negative, primarily from South America. Adjusted EBIT margin was 1.1% (6.7% in the first quarter of 2019).
