Sales for the company, makers of the Case Construction and New Holland equipment brands, fell 10 percent during the quarter to $8.4 billion. Despite the drop in sales, profit rose 61 percent from the same quarter last year to $87 million.
The company posted full year sales of $32.5 billion, down 3.8 percent from 2013, with profit down 14 percent to $708 million. The company notes that before restructuring costs, profit for the quarter was at $167 million while profit for the year was at $940 million.
Looking forward to 2015, CNH Industrial expects equipment sales to fall once more to $28 billion.
Like competitor John Deere, the decline is mainly due to a slumping demand for farm equipment. CNH Industrial’s agricultural equipment segment saw full-year sales fall 9.3 percent to $15.2 billion with operating profit down 12 percent to $1.7 billion. For the quarter, ag sales were down 17.8 percent to $3.4 billion.
The company saw ag sales declines in all regions with global demand for tractors down 7 percent and demand for combines down 18 percent. The company also notes a “significant decrease for high horsepower products.”
And like Deere, while ag demand is down, demand for construction equipment is on the upswing. After posting a loss of $97 million in 2013, the segment made $79 million in profit for CNH Industrial in 2014. Net sales for the year were up 2.7 percent to $3.3 billion.