CNH Industrial said it sees a better supply chain situation next year, after trimming its 2021 outlook earlier this month due to a mix of chip shortages, raw material price inflation and increased freight costs.
Chief Executive Scott Wine said while demand remained robust, the company was currently seeing worsening component availability issues that were affecting many of its product lines.
“We are aggressively working to mitigate the situation and expect improvements throughout this quarter and limited impact on 2022,” Wine said.
The company said supply chain disruptions contributed to a $700 million cash burn in the third quarter.
CNH now forecasts its 2021 revenues at the lower end of the range it provided three months ago, suggesting a rise of between 24 and 28 percent.
Orders for tractors and combines during the quarter more than doubled over 2020. The increase was especially pronounced in North America and Europe, CNH said.