Farm and construction equipment maker CNH Industrial on Thursday slashed its annual profit forecast, hurt by subdued demand for its machines amid economic uncertainty triggered by U.S. President Donald Trump’s sweeping tariffs.
Farm equipment demand has been subdued as falling farm incomes globally forced farmers to rethink their big-ticket purchases.
Trump’s trade policies last month further stressed the supply chain, with demand also under more pressure due to fears of a global recession.
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The company said that it forecasts 2025 global industry retail sales to fall year-over-year in both the agriculture and construction equipment markets. It also sees a negative impact on segment margins, resulting from lower production and sales during the year.
CNH Industrial now expects its 2025 adjusted profit to be in the range of 50 cents to 70 cents per share, compared with its earlier forecast range of 65 cents to 75 cents per share.
Analysts, on average, expect the company to report an annual profit of 68 cents per share, according to data compiled by LSEG.
Falling agriculture demand across South America and Europe also contributed to the profit and revenue fall in the quarter.
On an adjusted basis, profit fell 66.7 per cent to 10 cents per share, for the quarter ended March 31, in line with analysts’ estimates.
The company, which is famous for its Chase IH and New Holland brand of tractors, reported a 20.6 per cent slump in quarterly net sales of $3.83 billion (C$5.29 billion), compared with analysts’ estimates of $3.51 billion (C$4.85 billion).
The results come days after the tractor maker named James Nickolas as its new finance chief.
— Reporting by Anandita Mehrotra and Aatreyee Dasgupta in Bengaluru
