CNH Industrial reported third quarter revenues of $5.7 billion on Oct. 31, down 1.7% compared to the third quarter of 2015. Net income was $39 million and includes a charge of $38 million related to the repurchase of a portion of the Case New Holland notes due 2017. Adjusted net income was $68 million, up 79% compared to the third quarter of 2015.

Operating profit of industrial activities was $248 million, with operating margin of 4.5%.

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CNH Industrial reported third quarter revenues of $5.7 billion. (Photo: Duncan Smith/Thinkstock)

“Our third quarter results were consistent with our expectations,” said Richard Tobin, CEO of CNH Industrial, in a media statement. “Despite the challenging demand environment in our agricultural equipment business we have been able to increase our comparable profit margin for the quarter in the segment as a result of proactive cost control measures and improved equipment demand in Latin America. Our commercial vehicles business continues to gain market share in Europe as our new vehicle product launches continue to gain traction in the market.”

“We have had some very positive developments in the quarter,” said Richard Tobin. “We demonstrated our commitment to technological advancement and precision farming with our autonomous tractor concept vehicle at Farm Progress in August. We are effectively managing our businesses through some challenging market conditions by reducing our structural costs, retaining our leading market share positions and positioning ourselves to take full advantage of opportunities as they arise in the cycle."

In addition to acquiring the hay and forage segment of Kongskilde, the company is aligning with Hyundai Heavy Industries in the mini-excavator segment.

Segment results

-Agricultural equipment's net sales decreased 3% from third quarter 2015. Net sales of specialty tractors in Europe, the Middle East and Africa are strong, while there was unfavorable industry volume in the region's small grain sector. Operating profit was $155 million, compared to $137 million in the third quarter a year ago.

-Construction equipment's net sales increased .7% for the third quarter of 2016 compared to the third quarter of 2016.

-Commercial vehicles' net sales decreased 3.4% for the third quarter compared to a year earlier.

Source: CNH