CNHI - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Good morning, and welcome to the CNH First Quarter 2024 Results Conference Call. Please note that today's call is being recorded. [Operator Instructions] I will now turn the call over to Jason Omerza, Vice President of Investor Relations. Please go ahead.

Jason Omerza

Briana. you, Thank and everyone, for delay. the Good we morning, apologize to and quarter conference We'd XXXX. for like for webcast you welcome XX, March first to call the CNH period ending the results Industrial's broadcast call CNH. live This being on website copyrighted and our by is is use, transmission of written without express of broadcast any recording or other of CNH portion consent the is Any this strictly prohibited. call and CFO, Wine; CNH Oddone Scott CEO, are Hosting today's Incisa.

statements note that available for might download the that use any call will Please forward-looking mentioned in today's the the material during statement the They to safe material. presentation risks we the uncertainties CNH make from subject harbor website. are in including and

recent as U.S. Securities cause and Additional results presentation in materially the to annual information other filings non-GAAP Form with Commission. differ Exchange most includes contained measures. report as XX-K periodic certain to pertaining financial on that reports well could company The actual is and company's factors the

Additional in comparable information, including reconciliations measures presentation the is directly GAAP U.S. material. to the most included

I the to over turn call Scott. now will

Scott Wine

Thank everyone, our for you, thanks, call. joining and Jason,

quarter, review I like my upcoming to the departure from we Before address CNH. would

key surely a drive sourcing acceleration and of be our the our of improving customer-focused of the which team tech First, deployment X transformation years delivering thank today. profitability especially of operational efficiencies record accomplishments, notable to team's will technology-forward a and through-cycle I sales development, the here into culture. straight and I'm strategic and our of successful CBS the want our discussions sincerely margins to for proud topic

early it reduction demand. strategy to productivity, our in market ability achievable, to deliver full were we targets and on are get slowing with cost are track after them. achieve I have our We even our to confidence and

have we sight tech to execute do. set line and of work progressing, is to everything Our we a out in-sourcing

reasons strategy CNH's for ability to the put, team's have and business leaving delivering My nothing the cycle, future. margin Simply are peers. do to the or while our is bright outselling in our solid. personal continue believe with I expansion ag

X, of has the XXXX. ran since closely he Gerrit as well CEO He CNH for and in its has and he together of full leader. CEO. support, July and rejoin have spin-off confident As Iveco He's do a Gerrit Marx worked when CNH he been commercial here. I am I will vehicles will new proven my early

Now is and and America our Europe. challenging played We South perspective, quarterly on in to demand especially the be results. how first that would said a quarter it from out,

pricing their margin their absolute this increasing in working where competitive We even maintained profitability to percentage efficiency gains and us construction a Cost both year-over-year. are priority also dealers hard we've for with remains reduce profit level much their pressure our noted inventories. environment. of Nonetheless, pricing and

instituting curve We the were to in necessary but respond hard to our programs a on the realities operating downturn. ahead such restructuring cyclical as of SG&A of

team our our We we expanding remainder will implemented integrating will advance year. reductions acquisitions and And the savings from business. cost effectively compound throughout solutions our to our and tech already on of those into continue build the the stack,

lower our We and in even quarter. addressed year last XX% innovation America dealer We revenues inventory down management were sales advantage. South net leverage as as those industry week, a developments efforts levels. demand to dealer and consolidated this and industrial proactively and to the line will In we XX%, down in and connectivity adjusts announced were off-board exciting earlier continue with competitive first satellite to furthered expectations, the quarter inventory

a decremental Despite price margins compared the the points cost pressure realization Competitive the great down shipments, margin the just year doing down South in Industrial acute XX%, operations situation Adjusted most was keeping our and the under to a was job but positive ago. from reductions. lower and profitable. mid-XXs, just $X.XX, there managing pricing is $X.XX EBIT year. was in basis America, team EPS were XXX last reflecting the

decreased we and demand the and quarter all saw end the Throughout markets. across regions,

in production we cuts Despite inventories, quarter have However, so deliveries the outperformed make do. the dealer our not desired overall the did we in to retail work market. quarter, reductions still our in

continue our simplify to We lean out organization. and

despite program to restructuring back our We focus of in first the further on office basis programs. QX, program our the points Construction track. realization were and on Neilson lower and and but commercial quarter, gross Derek in demand operations phase actions in his execute with plan to such and favorable working both are dealer achieving completed EBIT restructuring rationalizing XXX conclude quarter. our margins the up team the by price in combining partners our as sales on not agriculture continue effective cost. QX We margins

profitability. Pampalone in Although to Stefano cost mix on Europe, volume and and his challenged, and efficiency continues were particularly team improving quality support focus

larger delivered on credit balances, and some business Their we strong net results. delinquencies, very receivable in a income Services Financial have Our strong grew increases portfolio. despite

with As on to I priorities, some we start at the our tech developments look side. recent want strategic

single Our be design. easiest lead to a accessible is also all clicks to makes It with importance fingertips dramatically to usability run obsessive tech OEM. and being FieldOps June in means experience is app. every apps our reviews and focus week, workflows and interface farm the of FieldOps feel. need FieldOps app industry our universal customers. accomplish at on customer-centric from use management digital rave intuitive web mobile web will anywhere, launched garnering already with Everything the This as simplifies operations task. all and mobile for to the our customer improved development look fewer The internal their FieldOps, farmers has will overall testers. our shown beta us approach The streamlines and and brand-new we their there the introduced from one data development in

our multi-orbit machines satellite to connectivity full locations. of of remote which also our suite from customers' Intelsat, precision offerings access brings week, they we announced with This can our more collaboration so

been farm Intelsat's in inhospitable with quickly proven have conditions, severe that to solar proven with ] had been will in environments. the to market can approach partner needed connecting critical we so and We would -- to perform. them in they confidence bring space. applications operating our work judicious [ technology have We antennas

We greater consistently also serve satellites stronger multi-orbit customers in connection. its low with areas where Intelsat's satellites constellation by a reach do orbit not of coverage

our a program part productive more our reduction strategy successfully cost a an is and important plays executing role. Becoming key company of

We continue production logistics procurement, drive through savings to cost manufacturing efficiencies. and

adjust we our The full the on the industry is which continue absolute somewhat impact at the necessitates. of Some year confident sheet as of these and build upon coming as are dollar held in targets. we season, man savings quarter, we balance those levels, inventory are savings production will for

As our our of mentioned First has discretionary the imposed restructuring been program discipline on earlier, we spending. implemented, phase and strict have

support on such as expanding in additional working already countries. are ejects We operations low-cost

the will now over results. I the Oddone to to turn call take through us financial

Oddone Della Rocchetta

and Scott, everyone morning, afternoon call. you, the good to on Thank good

to significantly working decrease had season. net QX industrial additional In in realization. XX% quarter offset as QX due our earnings quarter this improving, [ of sales income the and normal and at $X.XX. the $X.X supply price XX% year-over-year global as by net share tax with [ year-over-year outflow down adjusted we Higher $X.XX stocking. was down rate from volumes partially sales ] will ] is per XXXX decreased selling all EPS net The in This XX% by relative in first free by all of good volumes mainly the net And [indiscernible] First to year, of chain inventory outflow adjustments were Adjusted the in lower from billion. net $X.X was in quarter XXXX the contributed impact regions, finish lower discrete an capital the count, decreased ag by driven to we better decline level. lower flow lower from income share. Industrial one production lower in services, tax And the inventories billion. was strength the earning slightly levels. to cash delivered support financial of grew of unit's of dramatically was impacts agriculture,

margin first quarter the the absorption. some ag main But were Gross Lower America. the reduce compression QX XXXX, product from especially of manufacturing from South to in sequentially is lower XX.X% production hours sales impacted price volumes fierce compared lower XX% costs favorable the which pricing labor volumes for down driver efforts up cost offset able realization equation. for were fixed QX. to The despite XX.X%, despite competitive but in partially was XXXX, margin pressure, continued for by with we

dealers. to of sheet on mentioned, the quarter inventory keep actions As until in were in product realized savings implemented cost Scott company Unic balance the [indiscernible] are P&L. they QX sold those not all the

was net The Adjusted last reflects Construction, the basis EBIT product pricing margin EBIT well at first above and improved due quarter cost down for SG&A volumes decremental volume about more year's mitigate basis to the as net the savings quarter about levels. In margin of the Adjusted than Gross $XX restructuring ending year. XX.X% from to by program expenses flat. XX.X% benefited our the mostly X.X% XXX lower lower margin, points with group increased were points impact. million offset lower also margins. sales XXX help to XX%, SG&A than last EBIT

by QX portfolio. $XXX was the notable increase XXXX. of to to was million, improvement receivable on driven but completed interest Financial Services solid largely market million is now gains income rates Net $XX adjustment the a higher mostly The compared

quarter the managed $XX had equipment XXXX same tax over regions quarter high was effective continue originations the up capturing also in the customers' the compared we compared percentage $XX billion, $X.X period financing We end end million favorable nearly to a of billion million prior our across at $XXX rate. year. up portfolio -- and of The the $X of to improved as volumes needs. billion, a Retail were

You will more but of in are in normal when South delinquency pockets market no the America, far. we increase frequent up payments, ticked credit is Higher late our contracts. note quarter, and seeing where which delinquencies portfolio in mainly so in are losses that

are we or downturns. are same the in at The delinquency lower than rates previous levels seeing now

are credit set to protect Our reserves profitability. future properly our

on million just to stock on and extraordinary $XXX the program repurchased over first as move note our completed allocation billion on our specifically, capital a million in program quick Finally, worth buyback in priorities March. new returns. the shareholder $XXX of and we $X quarter We

$XXX share in shareholders, and shares We cash-generating it a our cash is the coming XXX% nearly of to CNH annual buy weeks. M&A needs, net and through of is dividends and our business flow pay return continue buybacks. dividend goal free to to we industrial now, back about million our

turn Q&A. the now for come will I back that, with it back Scott and And to

Scott Wine

projections, previous albeit you, for Thank more range. lower tractors year right. our Reviewing largely full towards line Oddone. the All moving forecast of the our agriculture, is with end for in outlook

be our agriculture end now We have retail combined guidance. for aggregate expectations markets, our America. estimate about the putting In volumes both industry industry for at sales that will reduced down South in low EMEA we previous and XX%, us our of key

decrease industry our to aggregate, keep now basis Construction, channel for demand EBIT X% industry about projection marginally slightly Consequently, we equipment and but products This XX.X%. XX% projection forecast for heavy and our to light decrease agriculture improved inventory expect in in to we forecast industry XX%. America margin by by the only the sales we are volume, check. points lower XX% have to our XX North to to XX%. With to still we lower XXXX XX.X% forecast be down lowering net in of down lowered APAC. XXXX, between our volumes reduction In In will this previous intention

sales reaffirming EBIT XX% and down sales our to at are forecast year-over-year X% net X% margins EBIT with X%. and We margin flat to

the now net flow net free to sales $X.XX. versus $X.XX XX% industrial $X.X We've estimated Combining sales last XX% expected agriculture be year, the projection to billion and at EPS forecast, to are $X.X to billion. down with industrial by construction driven also to cash $X.XX

downturn the we position take our our that are will track strengthening today us for which away I from call like What to is you would execute while see on upswing. our the inevitable strategy through to

a company our of resilient built more everything we have and puts leaner at do. the We customers center that

as York heights. in. simplified will capital profile greater improvement great We have friend an a I a the cheerleader. share team path I'm a have New of sincerely a We've grateful with tremendous and good a I to continue and marrying hardworking under a worked CNH whom deeply thank leadership on market tech. not I is he He's colleague. team. and with on single operator we have significant time CNH Gerrit's since ingrained together shareholder focus market and listing in our who joined highly our will at respected and experienced remain Gerrit have only like and margin iron for great take I confidence we even CNH and strong to would my a

Thank concludes our remarks. you all. Briana, prepared that

If you could questions. open the line for

Operator

Mig Your from Instructions] first comes Dobre with question [Operator Baird.

Mircea Dobre

It's and before comments ask, seeing the but a kind go, I about shame we're here you labor. really want around circumstances departure, to I down of of stepping do you're understand see to your your the your fruits timing-wise,

and lot team to have the over years You the couple a of transform business. past the done

X around questions guess I that. So

the is expect maybe the shareholders thing Gerrit all how you in him of put into this, your designed strategy right? is when the I how momentum, direction execution how is, company Is What fair strategy mean you're the at As to of take of second Gerrit that first that looking in? of the do relative And it's to a sort than to your operating coming so far? in sort course familiar frame is place? that for sort with or been and the with you communication plan? different the expectations you it

Scott Wine

really operating first but -- team Yes. the mean all tremendous He of the Part really all, on into in -- I the said work and stuff that delivering customer, Well, of as a the for impressive customers doesn't ongoing culture and accomplished. announced. I mean, comfortable Part margins is I watched of run the just delivering I a Gerrit ingrained have this ongoing And it's prepared the leaving changing that we've have didn't I success the in of since did I'm that I'm businesses, and that company. expansion, change. said margin an this in mean, of focusing I reviews. I of reason all has team had -- remarks, interest again, and ag vested the was dialogues the he thankful of

put what and who's market that have. He's gains this. margin X but strategy -- care to share his ultimately, on with is, margin about are And -- company. do if way you we intimately how step our the creation familiar it's we're going you he's levers the value share think things, can't -- about Obviously, expansion. running I Those to if don't going you back,

could change. if that we how at Stefano's construction Now you results get team to look those things But delivered. the

I'm momentum You what over look Derek's going X there to at done the forward, last years, is a or not. that's whether lot carry here of

Mircea Dobre

a construction follow-up. and get you you're I'd you're in also as it to could I'd I'm my And in Understood. seeing by segment. on dealer channel. geography Maybe inventories. what what if question appreciate that. seeing And perspective your as curious as love the well by to comment

Scott Wine

especially got well. shipments. with strong they bit year, to of we the much had to ahead had All was us right. do last fourth we performance construction. had That a really never continue little and -- his on a quarter Well, different retail start overall I'll position team a scenario because construction. and agricultural But throughout be Stefano that, the construction in allowed better in on ourselves

we'll So shift there the to demand year. throughout essentially

inventory On at quarter. wanted the we dealer still despite decrease performance share we we first to. significant the good But somewhat had did ag not again, in a market production levels cuts, side, the

considerably. We'll the There's quarter. are So about we're in get prepared -- work used remarks. of quite the we've most where up. in talked the inventory do. is done down most got are we Combines pressure. to Demand second seeing building that that Combines

is of in So the North committed go to still interestingly, adjust strong. overall tractor pretty done American biggest market we're inventory forward. But the getting as dealer But chunk we that we'll QX.

some QX, probably I in there. So but will pretty we're carry think into good shape

Operator

Cook Jamie from Truist. comes question next Your with

Jamie Cook

Scott, because sorry a the going to company. you've job you with see great done

to stock you where do going my to quarter. you So think I have how exit lot utilizing still just the I that market view to share sheet. concerns the talk be of demand, and your you story that a based changes said second guess given you And in magnitude much weren't more on we about of is just there. lot cost there be still able the in you on know market are terms expected. associated question, underperformance, I retail Scott, you've you give we to the the just know production the demand? you retail first market was guess, repurchase. line second delisting, your underproduce done management a And question, XXXX, in I'm Can given of you're the position downturn cuts, about I today? sort sort think A produce to a of thinking then in how my guys confidence, with of balance that but as will that share wondering that do with should of

I'll So with those up wrap two.

Scott Wine

mean, obviously, Jamie. the team to about I Derek the market for ag the mean, we but are next exactly production X only the at mostly is demand because And we -- Thanks, looked But expecting, but we -- not I can't phenomenon, later and will I feel is his it's adjustments, to the be unless ranges going that really production quarters. -- in really No, there XXXX. shipping good an in given predict ongoing we there's XXXX do. mean, what have

where to stand. So confident and talk we pretty that you the I'm about share in. want buybacks Oddone,

Oddone Della Rocchetta

Yes.

million in program. $X we started on remarks million and pay going dividends I program. $XXX $XXX burying this are a in year. my the prepared that in that new March, So had we We to completed billion We're

to are up, our and dividend, to shareholders. if policies. that if any don't our dividend And may buyback Basically, cash almost M&A we devoted of flow to M&A have be we now will on XXX% that is consider share upside we out of expect add money a that now. our back if we considered right amount free -- exclude we considerable don't the we industrial free to change any behavior shareholders going having So large have you it's

Operator

comes next Deutsche Nicole from DeBlase Your with Bank. question

Nicole DeBlase

ag. occurs declines where then more starting that ag production back on on modest just left the guess And get a XQ, quarter? cadence point production Is off putting just picking of up year-on-year expectation second finer I decline quarterly kind and the the in the with in segment. guys in the worst maybe to Jamie maybe

Scott Wine

true true, compares that the that's Yes, and in half. easier compares it's also for us the second of because a year-over-year, get the lot

So it. that of production the -- are but I also we're confident. cuts pretty And half one mean,

The do, with accelerate and partners in that our capture is make can. what part driving to closely working team other we those and really retail, one the sure we every confident is we I'm how dealer where of

I that through going drive on the about since to not think we're but will -- our some see talking price it. -- I we're get talk things discount disciplined. and going I we're retail realization going to going the that. really price not mentioned to do you that we're to share to for I sales, And We're gains. going fact that. will disciplined of to to, I be be managing to going we drive very will when are we're and we're market chase efficacy, for competitors And being

Nicole DeBlase

this X you And quarter. to margin have helpful. I guess Got for the step implies then The driving guidance construction. quarter guys the down results. on it. maintained really year first that? a still for impressive maybe X% what's That's was just X% from full there performance

Scott Wine

last not Stefano the that significant you the the we all, in to good as a didn't have related in strike quarter the margins -- team first the raise year. of beat recognize in that most But and doesn't of his it was reason bit first we first of the Well, quarter can't repeat throughout had ongoing drawn. improvement impact year

Operator

Raso David Evercore. with from comes question next Your

David Raso

as up just the the outlook did as much itself sales move market your in fourth unit Obviously, for parts around last goods. complete The you XX%, to quarter down year, down end ag. retail. doesn't the trying XX%. In square industry, guide forecast I'm underproduce the is but is of business

guide up first So the down really This pricing appreciate about thinking underproducing if when offsetting rest I to is how as is just I of those your think year, X isn't guide? the you're as square trying I'm that high. the much question. much my we don't industry factors. are But sales

year. Just expect trying we're that to the inventory make level setting where sure you to end

the math I as me easily have would Just working liked. for as isn't

Oddone Della Rocchetta

that mix outperform and the in There market market is need to consideration, gain share there. expect to Well, market this we year. a some

market look world, at South have you market behave parts to look at or and I how in space in some sales to last first our If to mean of of we recover year. had the that question the will of stock the compared destocking into it's year and dealers stocking first the production deal. dealers we I last the a America we quarter

our been of quarter, have But done the was kept end dealers dealer were this at most stock are last of has down -- year, of the network end have basically where from slightly -- the -- inventories they lower kept we inventories expect to at the the at We year, flat And there. end this stops year. sorry. of their it

Scott Wine

technology the year. our of is sales penetration And well don't forget, improving throughout as

David Raso

down. the market that mean component when within well to are combines, it around that items least actually down are than why. the It's North obviously, there's market as share right? But equation really ticket America. even like larger to high have That's low the mix, Brazil into world share items, there. at combines a as enough because tractors I look at it's you feels there put that ticket the more Yes. there's the

rest left that on up both I you're much with the that know trying the are covers Slide you And ag, year the of on for in if X insinuate margins to what and savings of segments. the Lastly, for square how year?

does we -- cost, up. guess just square to but share, in all the the to square not the I'm general, is for So just suggests are and price and cost math the market I'm trying not I up price trying question changing look? price on So this

Oddone Della Rocchetta

mean, we and a, modest production, have continued that cost if very reduction but right, price our No, -- some actions. and of hasn't. then the our still -- pricing It hasn't. . we had positive before, so you're increase, consideration modest in same increase talking it in modest of SG&A impact price I

Operator

Your from next Shlisky D.A. comes with Davidson. question Mike

Michael Shlisky

I'll in quickly Scott, add you to best ag. I pricing to wishes well. on as my wanted talk

game You the wholesale, mentioned positive would quarter. And discounting just around in pricing I kind retail that's open keep now. when to things competitors, not you know happening you're some in of that to maybe implying farmers, trying but broadly necessarily that's for just of that was world you're that to looking that not your is speaking, play just growth there kind you're the some And from I -- where say price XXXX? right

Scott Wine

right And in and growth team universal striving we we're policy. do to it's really we're have nice It's years realization. were I is position like to don't think not region-by-region a costs But done ahead. disciplined a mostly we Derek before, I have we think is a a to But before. And strategy. team region -- and price ourselves share we job job. covering done extent just acceleration it's the a get this for position. can And we're execution. Rafa a do mean, very get And retail exit really And what everything as get his the year. And in -- obviously, now, where ] said team really on South going -- good being I America, can. what has proud region, but we it inventory by price again, makes to in executing that can, just we the good having where that of the market have and us price comfortable [ most very, done the dealer down sense, I

So be happens. to advantage take as that what of market able as full soon turns, we'll

maintain So year. quarter reasonable will in we to that first with assume I pricing think did the the what throughout it's

Michael Shlisky

onetime current future then the next And either in Intelsat it year a sold or here? is on any curious upgraded kind this baked follow-up here? stack. each Great. will systems to grow of individual get how hardware I the you sale kind there place account in to for are that Okay. Intelsat way Or or to costs some on guess and tech software or systems of capabilities take with your any farmers get that other agreement, layering the the I'm

Scott Wine

mean No. close the call the wouldn't do, which ruggedness of we what the and of ever I'm part work. validation they Intelsat of that I I with reason to that reluctant anymore, I but went Marc of have evaluating plug-and-play anything job really good mean, can proven amount because is done we we can as it's that of And something this about and as run. get. Kermisch his opportunities a team is the ensuring lowers

that later from will in year. benefit to market will this and the Brazil, happen be first The

Operator

question comes Kristen next with Oppenheimer. from Your Owen

Kristen Owen

wishes have to This Scott X you market drivers that wanted being And obviously going the of you. the biggest ask X to I comments. about best also share forward.

relative to outperformance industry highlighted first You in quarter. the the

strike recovery given comping are last share from some do of year, question you follow-up what how market that, And still well lost? how wondering on of are gains making seeing What's the incremental And versus the this you regaining a you're mentioned a will you positioned up share implications. perspective? market have And there? share you're stack. the much I that Just then market anticipate that you just you're be

Scott Wine

a of really year what the the the a just that lot up production in a team I out [indiscernible] proud to I'd fight work I street making just accelerate was last again, driving of throughout customer year, you Well, focused. there, made It's our there. think throughout did demand. customer-centric done we're to to we about the tell is And And year. we've

more our but team's as it's strong of product out expect -- to guided win And the what of in suggesting the you is I'm a to I But is seeing it's But the mean year. portfolio with of that I And will easy, execute that, late, mean battle. just think quarter expectation I we're And I is battles you've some it it those what the think quite is throughout the ability now. announcements really play that continue. not dealers with you're able that. first don't seen the big -- we've saw as better. And is getting right

better. like the the market do getting execution all expect And if you we the is gets can is better, better, have So of product portfolio you technology better. getting getting share that, feel team's to

Kristen Owen

Right.

Or a then Intelsat a to incremental modem? us of implementing about I the little maybe in and there mean, how play being get. that is go plug So the sort you of understand basis? unlocks on follow-up and you and like that about bit on a of with it as an I [indiscernible] talked tech integration what Hemisphere fits sort for go-forward close as actually Raven stack. can GNSS, the help

Scott Wine

is, we and to it for we it our We've long figured different -- do, phone into and that's how kind a the and mean, talked that out cell I time, It everything to goes we system. done have -- integrate of on signals ruggedness about. operating

PLM this AFS really and Connect seamlessly quite to his Mark going both into their Connect are integrate comfortable forward. team ability and about So

Operator

from Zakaria question Tami Your JPMorgan. with comes next

Tami Zakaria

you but -- Scott, very miss successful chapter. sure. completing I'll is [indiscernible]. My leading of luck congrats next for question on time a first the best

like look you ag to like ag decline XX% in versus by the So year? to for America for this geography, you question sales to think should we color some South what total down year, segment expect can about guiding America me is, North Can give sales. XX% how versus you're my you Europe first the comment

Scott Wine

we we percentage Europe South market. also down the the highest in declines the particular is declines clients, Well, North we America in larger. of terms. lower, are the percentage in commented, see combined as industry but where is in market America seeing are terms, in course,

the at I recover say more would clients we right? right most So across They've South I But America what are end say that's may the have. in every now. they would we the to But hurt And we intense region, board, have of the find. in year. are or

Tami Zakaria

it. Got

first guide the Construction on sales sequentially Can quarter And I also quite margin here since And you imply elaborate was on. the the -- helpful. very that? think from we segment That's what drove really Okay. mean, are Construction would I improving then impressive. business,

keep sales up. the total well unseen year . see as So margins guide why I would guess, as full move improvement not

Scott Wine

we quarter first Burlington benefit year cost to Yes. the in there. didn't the before Well, compared had that again, some have the in

we that's expect So be it. construction that in is greater than pressure it ag. the will we're guiding do in part not reason of pricing

good of more And have driving really don't expect look at The the to But about portfolio the expansion helping to the you quality. fight we and going we're relocation improving sales and has we can. have to So and things And of throughout battle everything. that team And both cannot -- I it. we but extent compare to margin, margin. done contribute again, gets a low-cost go drive helped job of difficult. Stefano is year, talk construction his to all production regions those the as

we like prudent So feel right it's now.

it the If anything throughout it's get not to in you see in but a going it's to to more the market we're other peers less, robust get year. going that. been construction, it's robust our and again, prepared -- just And

Operator

Morgan comes Angel with next Castillo Your Stanley. from question

Angel Castillo Malpica

to cost little stick maybe to wanted more. Just kind a bit conversation of the

the of just laid even remaining that earlier, kind about out. talked cost of you've You focus beyond programs kind

given of to to pull mentioned so you cost your continue you of to foresee the continue operations, some already to kind initiatives. cost what do structure, in of you've improve in much improve that? contemplated you kind beyond or made your aren't already this levers again changes done to So That left

Scott Wine

overall anxiety of all, to point, about to of you amongst At stop the got And think on close I restructuring. first a talked SG&A Well, this we're having we second team. bow that some kind the out putting in quarter. Yes. going

on initiatives been the is throughout every when team month, So that quarter move organization. in our things doesn't will can leave over what the better restructuring will lean with and that plant, every effective and And just it, every week, better that work be the is But every year. the CBS I with. gets different have and and building to stop momentum

new done work resource it so Our implement is with team it's into I'm impressed integrate slow we as suppliers, need the things buildup program, sourcing the to, -- we but strategic a where we the has them machine.

has is into time. well So I that focus zero-based we on And leading drive what position And levers fundamental a the can in one then just do. exercise. that been everything that almost to continue will builds margin a Oddone a budgeting future. is It's X expansion we over those cost think us put in

Angel Castillo Malpica

helpful. very That's

to I back sorry little as outlook. this, but -- still keep the to I'm to just bit going And confused a construction

to some onetime you the that about, impact margin the X% minus kind of How So is can tougher and probably I kind comment of for incremental that performance, But any guess, like on you're America to of that some maybe pricing talked least kind sales square side. now that to give flat. improvement driving in demand construction maybe you given at of the what this your of think equipment has of bridge we just improving? help it unit seeing that be as the and color of heavy seems seems North an the kind year? kind industry you well with So industry what's retail that talked industry improved of about on in items to and kind as Burlington for heavy I any do

Oddone Della Rocchetta

point. sort all is are news two and And Well, in residential of interest America clear outlook the there. rates things. with prudent at One, this rest, would the the latest the on I say not we North

not we the but well, North intense construction the to is our market. many much and as overseas in competition Many from Far . if very the pricing. ability regions, quite players not much coming that subject a from market. as players the have other fluctuations in of very there, much, competitive which in before, that mentioned Secondly, America, overall to East, pricing, on is Scott construction is maintain

construction And so on would is pricing I in the say. line, our prudence

Operator

of with Michael comes Your question America. from Bank Feniger final

Michael Feniger

better cautious the for were downturn clear. you on Scott, a more position ag became the cycle, kind getting [indiscernible] of in

trying it stand that just Just what on for XXX within today, staying I'm tough at where we keeping of you're XXXX, to that takes significant change our you higher potentially Is your eye grow curious customer, for key there If no like XXXX? of the least in to leaving variables. longer. some rates and we these on kind there's corn, place. company as feel the in position should puts be a good

Scott Wine

Well, if to on not coming But there opine anything, it's was I've or ag business, to the lot learn. comment cycle. I tried, a into obviously, learned this

not you're trap So me saying to on XXXX into going call. something about this

Michael Feniger

And product you to a product you started -- there introductions, just talked commentary new company just the what going? where market there's you on XXXX, came you are need some share. that beyond Fair enough, share few ago? we Raven? pulled regions it guys Is about is the Scott. lot Or I'm the of share? on like then are already doing that and maybe the Do higher market be drive ball really and sight -- levers than it is when best more line feel what years to was just to to and groups one some a of margins see gain curious, that

Scott Wine

with when working plays And with share is we It's our -- or to levers. forward. I'll going we it got you of management great demand tractors soon probably guys couple tremendous dealers call could the the good. delivering wish new think, have portfolio, system so bit relationship our CR been down to for what drive the does. off-board going it's products, that, mean, And solutions, is -- I iron tech AFS that in much Connect Derek demand But part on and to or And saw, our comes we've in has be platforms then our like those The as we regularly, all customers. The tech. we in. I and what done the great develop FieldOps in and system get obviously, our there's brings helps tractor all a mean, productivity more [indiscernible] iron, people really I field. of PLM great that some good better going What and for unbelievable we're focus on, it. white our to, MGMA you customers is should that I of your XX-ish, think, That's because XX, I really, then mean Connect machines -- to investing term we upgrading have of for space the ultimately, continue market started, into man, just lot really future. is to American I especially little the use this to operating the And commented tractor money give North European a our what incremental a close there. that

to think future. bode gain I those in for of So all ability market well the the share

Operator

for participation. further at are call. conclude today's all questions There no this Thank you will This your time. conference

You now may disconnect.

CNH Industrial (CNH) 2 May 242024 Q1 Earnings call transcript