Accounts in order and new acquisitions for Cnh Industrial, which acquires the Danish Kongskilde Agriculture. The company chaired by Sergio Marchionne it reported consolidated revenues of $5,749 billion in the third quarter, down 1,7% year over year, but in line with analyst expectations. Industrials net sales revenue fell 1,6% to $5,461 billion, but net income rose to $39 million versus a year-ago net loss of $128 million .
“Our third quarter results were in line with our expectations,” commented the CEO, Richard Tobin. “Despite the challenging demand environment in our agricultural equipment business, we were able to increase our operating margin in the segment in the quarter compared to the same period last year thanks to proactive cost control measures and the improvement in demand for machinery in Latin America. Our commercial vehicles continue to gain market share in Europe as our new vehicle launches continue to gain strength in the market.”
The operating profit of agricultural equipment amounted to $155 million in the third quarter ($137 million in the third quarter of 2015) due to better net pricing and lower material costs. On the other hand, the operating profit of commercial vehicles has reached its peak 64 million dollars in the third quarter ($60 million in the third quarter of 2015), with an operating margin of 3%.
The company chaired by Marchionne also announced that it had reached an agreement for the acquisition of the haymaking and land preparation machinery manufacturing business of Kongskilde Industries, owned by the Danish group Dansk Landbrugs Grovvareselskab. The acquisition provides for a transfer of assets related to Kongskilde Industries' activities in the segments: soil preparation, seeding, haymaking and forage.
