CNH Industrial Lowers 2023 Outlook on Weakening Farm Equipment Demand, Announces Restructuring and Cost Cuts
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CNH Industrial lowered 2023 revenue forecast due to softening farm machinery demand, mainly in South America. Shares fell over 7%.
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Company announced restructuring plan including 5% cut to salaried workforce and 10-15% reduction in total workforce expenses.
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CNH changed free cash flow estimate to $1-1.2 billion from $1.3-1.5 billion.
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U.S. farmer income expected to fall 22.8% from last year.
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Tractor sales in South America fell 16% and combine purchases declined 47% in Q3.