CNH Industrial Construction Equipment – the part of CNH Industrial including the Case Construction Equipment brand – saw its net sales total €558.14 million (US$609 million) for the fourth quarter 2015, a decrease of 18.7% compared to the same period in 2014 on a constant currency basis (down 23.9% on a reported basis). The drop was said by the sector giant to be due to demand weakness in NAFTA and LATAM markets.
In the full year 2015, Construction Equipment’s net sales were €2.329 billion ($2.542 billion), down 18.3% compared to 2014 on a constant currency basis (down 24.0% on a reported basis), due to reduced industry demand, primarily in LATAM and APAC.
Operating profit was €16.49 million ($18 million) for the fourth quarter 2015, with an operating margin of 3%, up 1.9% over the same period in 2014. The increase was a result of positive net price realisation, and structural cost containment actions. In the full year 2015, Construction Equipment reported operating profit of €82.48 million ($90 million), a 14% increase compared to 2014. Operating margin increased 1.1% to 3.5%, as net price realisation and structural cost containment actions were said to more than offset the negative impact from lower volumes in LATAM and APAC.
In 2015, worldwide construction equipment industry units for heavy and light products were down 18% and 4%, respectively, compared to 2014. Decreased industry volumes in LATAM and APAC were partially offset by moderate growth in NAFTA. Demand for heavy and light construction equipment was flat in EMEA.
Construction Equipment’s worldwide market share was flat overall year over year, with a decrease in LATAM and NAFTA, offset by an increase in market share in APAC and EMEA.