Delivers Strong Revenue and Net Income Amid Industry Headwinds
CNH Industrial cut its annual profit forecast on Thursday, squeezed by slowing demand for its tractors and farm equipment as choppy crop prices and higher borrowing costs hinder farmers from making big-ticket farming purchases. Global crop prices have moderated while farm incomes have dwindled, setting up for a murky demand backdrop for the agriculture equipment sector as farmers pull back on big purchases such as tractors and combines. A surge in demand for agriculture equipment early last year had also seen machinery dealers bulk up on inventories, but that trend is now set to reverse as dealers look to tighten their stocks, which translates to lower margins for equipment makers like CNH.
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