CNH Announces Earnings, Acquisitions

Net sales in industrial activities for CNH were down by 6 percent compared to the third quarter of 2018. Lower sales volume and negative currency translation offset positive price realization.

Adjusted net income was $221 million in the third quarter, which was in line with the third quarter of 2018, benefiting from lower interest expense and a lower adjusted effective tax rate.

During the quarter, CNH Industrial continued corporate planning activities in view of the future separation of the off-highway and on-highway businesses. Also during the quarter, CNH Industrial acquired AgDNA, a maker of farm management information systems, and entered into a strategic and exclusive heavy-duty truck partnership with Nikola Corporation.

CNH Industrial also recently announced the acquisition of the Australian agricultural tillage and crop implement manufacturer K-Line Ag, and the acquisition of ATI, Inc., a global manufacturer of rubber track systems for high horsepower tractors and combine harvesters, in an effort to strengthen its strategic position and to drive industry consolidation in the agricultural market.

The ATI acquisition includes ATI Track Systems’ engineering and manufacturing plant in Mt. Vernon, Ind. The K-Line acquisition will add tillage and residue management equipment and will diversify the crop production portfolios of Case IH and New Holland.

CNH Industrial also has agreed to the sale of its Truckline parts business, a distributor of aftermarket commercial vehicles parts and accessories in Australia.

Source: Global Newswire