In its earnings release for Q2 2023, CNH Industrial reported net income of $710 million, up 29% year-over-year from $552 million in Q2 2022, which the company said was a record high. Diluted earnings per share were up 30% year-over-year to $0.52. Adjusted net income was $711 million, with adjusted diluted earnings per share of $0.52.
Net sales of Industrial Activities, which encompasses the company’s agriculture and construction segments, were up 6% year-over-year to $5.95 billion, mainly due to favorable price realization, offsetting adverse currency conversion impacts, CNH Industrial said.
For ag equipment alone, net sales were $4.89 billion, an increase of 4% over the same period last year due to favorable price realization, partially offset by lower volume. In North America, industry volume for tractors over 140 HP was up 21% year-over-year and was down 8% for tractors under 140 HP. Combines were up 27% from prior year.
Gross profit margin of Industrial Activities was 25.0% versus 22.0% in Q2 2022, a result of favorable price realization and improving operating performance of CNH Industrial’s production system. For the ag equipment segment, gross profit margin was 27.0% compared to 23.4% in Q2 2022, which CNH Industrial CEO Scott W. Wine called a record.
For the 6 months ended June 30, 2023, the company reported consolidated revenues of $11.9 billion, an increase of 11% year-over-year and 13% at constant currency. Net income for the first half was up 35% year-over-year to $1,196 million, with adjusted diluted earnings per share of $0.87, an increase of 35%.
Regarding its Industrial Activities, CNH Industrial reaffirmed its outlook for 2023 of net sales being up 8-11% year-over-year, including the effects of currency translation.
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