Analyst Note| Brian Bernard, CFA, CPA |
CNH Industrial posted solid first-quarter results, as manufacturing revenue was up 41% year over year to $7 billion. The company saw strength across the board in its end markets, with notable growth in agriculture and freight markets. In agriculture, tractor demand surged in North America, up 53% year over year for tractors under 140 horsepower and up 15% for tractors over 140 horsepower. The segment continues to benefit from higher volume, favorable product mix, and solid pricing. Freight markets also remained hot in the quarter, pushing sales in the commercial and specialty vehicle business higher by 39% compared with the first quarter of 2020. Strong freight activity has driven significant demand for new trucks globally.