CNH Industrial’s first quarter ag net sales were down 14% year-over-year to $3.4 billion, mainly due to lower industry demand and dealer inventory management.

According to the earnings report released May 2, agriculture net sales for the quarter fell back to levels seen in the first quarter of 2022, though remained about ag net sales for the first quarters of 2020 and 2021. 

CNH Industrial also reported first quarter dealer inventories were up compared to Q4 of 2023 for both tractors and combines, while unit production in the first quarter outpaced retail activity in both those categories.

In a note to investors, J.P. Morgan's Tami Zakaria said CNH Industrial’s restructuring program is on track to be completed during its second quarter, saying: 

"Previously, CNHI announced an immediate restructuring program to reduce its salaried workforce by 5%. It also unveiled its plan to right-size its cost structure. These two initiatives are expected to reduce total selling, general, and administrative expenses (SG&A) by a 10-15% run-rate. CNHI reduced its SG&A expenses by around 12% year-over-year in the first quarter as management imposed strict discipline on discretionary spending, expanded support operations to lower-cost countries and rationalized back-office operations.”

Zakaria also noted that the company fell short of decreasing dealer inventory to its desired levels during the quarter. While the company looks to complete dealer inventory cuts during Q2, she said it could potentially carry into Q3