CNH Industrial reported consolidated revenues for the second quarter of 2022 at $6,082 million, up 17.5% vs. the second quarter of last year. Net income for the quarter came inn at $552 million.
For the first 6 months of 2022, consolidated revenue came in at $10.7 billion, up 15.7% year-over-year. Net income for the first half of the year was $888 million, up $11 million vs. the prior year.
“Pricing, volumes and favorable mix offset significant cost escalation and gross profit increased $174 million year over year," said CNHI CEO Scott Wine. "Component shortages again impacted production, resulting in Free Cash Flow of $404 million which, though a tremendous sequential improvement, was still down almost 50% vs. Q2 2021. Despite this, we continue to expect to deliver more than $1 billion of free cash flow for 2022.
"Looking forward, we have exciting new products to unveil at the upcoming trade shows and our Tech Day late in the year. Raven and our Precision team are making great strides and helping to drive Agriculture’s growth, and Construction Equipment, bolstered by Sampierana, is significantly increasing its profitability. With this ever-stronger foundation, we expect to meet our Full Year guidance, but anticipate a decidedly less advantageous climate for the next several quarters. The strengthening US dollar is impacting soft commodity prices, risking further deterioration in farmer sentiment and income, while we see the likelihood of declining European industrial demand due to the war in Ukraine, energy risk and inflation. In the Americas, steady demand from cash crop customers indicates that the market may be more stable, but overall we are positioning for a recession. Our team has proven that, regardless of the environment, they will continue to execute our strategic priorities and deliver for our customers and shareholders.”
In North America, industry volume was flat for tractors over 140 horsepower and was down 16% for tractors under 140 horsepower; combines were up 3%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 1% and 24%, respectively, with combine demand up when excluding Turkey and Russia. South America tractor demand was up 4% and combine demand was down 14%. Asia Pacific tractor demand was up 11% and combine demand was up 21%.
Net sales were up 19%, due to favorable price realization and better mix, mostly driven by North America and South America.
Gross profit margin was 23.4%, with Gross Profit $150 million higher than in Q2 2021, mainly due to better mix and favorable price realization primarily in North America and South America, partially offset by higher production and raw material costs across all regions.
Year-to-date agriculture net sales were $8.1 billion, up 16% vs. $7 billion in sales for the first half of 2021.