US machinery giant Case New Holland has reported a sharp drop in half year profits, as sales of new tractors and combines fell in the first half of 2019. Announcing half year results last week, Case New Holland said profits (EBIT) from the sale of agricultural machinery fell 13% year on year to $509m (€455m), as profit margins tightened from 10% in 2018 to 9.1% this year.
US machinery giant Case New Holland has reported a sharp drop in half year profits, as sales of new tractors and combines fell in the first half of 2019.
Announcing half year results last week, Case New Holland said profits (EBIT) from the sale of agricultural machinery fell 13% year on year to $509m (€455m), as profit margins tightened from 10% in 2018 to 9.1% this year.
Revenue from the sale of tractors and combines fell almost 6% in the first half of 2019 to $5.6bn (€5bn). Case New Holland said higher prices for tractors and combines were not enough to offset falling sales volumes and higher costs.
The company said worldwide tractor sales slumped 9% year on year, with a sharp drop in tractor sales in South America (-18%) and North America (-5%).
Worldwide sales of combine harvesters plunged 15% in the first half of 2019, with particular weakness from sales in Europe (-22%), North America (-19%) and South America (-13%).
Shares in Case New Holland dropped 12% on the back of the weak results.
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