In this Equipment Roundup, DTN/Progressive Farmer looks at CNH reporting a sales decline and lower net income in the third quarter, and AGCO adding to its dealership network in North America and expanding its NexTECH program to South Georgia Technical College.
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CNH CHARTS ROUGH SEAS IN THIRD QUARTER
CNH Industrial reported rough sailing for the three months ended Sept. 30, 2024. Net income of $310 million in the quarter just ended compared to net income of $540 million for the three months ended Sept. 30, 2023.
CNH agriculture net sales decreased for the quarter by 24% to $3.31 billion, primarily due to lower shipment volumes on decreased industry demand.
"We have focused on making the company's operations more efficient and on being more responsive to our customers' needs," CNH CEO Gerrit Marx said. "But dealer inventories remain elevated and will require additional efforts to align with retail demand."
Net CNH agricultural sales for the first nine months of 2024 are $10.6 billion, CNH reported. That's down 20% from the same period in 2023.
In North America, industry volume (all brands) was down 18% year over year in the third quarter for tractors under 140 horsepower and down 17% for tractors over 140 horsepower. Combines were down 29%. In Europe, the Middle East and Africa (EMEA), tractor and combine demand was down 20% and 50%, respectively. South America tractor and combine demand was down 12% and 32%, respectively.
With this report, CNH updated its 2024 financial outlook. It now expects ag segment net sales will be down between 22% and 23% year over year.
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AGCO EXPANDS NEXTECH PROGRAM
AGCO Corporation has announced that South Georgia Technical College (SGTC) will offer its NexTECH program to equip technicians with the skills needed to service AGCO agriculture machinery, including Fendt and Massey Ferguson. The program at SGTC's Americus, Georgia, campus is currently accepting students for spring semester studies that begin in January 2025.
The NexTECH program integrates AGCO-specific content into schools' existing diesel technology curriculum, providing students with hands-on training for the company's advanced machinery. The program mirrors training used by AGCO's North American Aftersales teams and provides participating schools with AGCO training aids, powertrain components and technical resources.
NexTECH is geared toward traditional students who have a passion for diesel technology and STEM (Science, Technology, Engineering, and Mathematics) studies, as well as problem solving and work-based learning.
Interested students are encouraged to contact SGTC to determine if dealerships are providing tuition benefits for work commitments.
For more information on AGCO's NexTECH program, go to www.AgTechnician.com/NexTECH. For more information regarding the program at South Georgia Technical College, go to www.SouthGATech.edu.
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AGCO EXPANDS SERVICE REACH
AGCO Corporation also announced it is expanding its dealership network in North America.
-- AgRevolution. AgRevolution recently announced dealer locations in Ohio, including Circleville, Liberty Center, Salem, Upper Sandusky and Urbana. These new locations, along with AGCO's FarmerCore on-farm mobile service vehicles, will provide sales and services for AGCO's full lineup of brands and equipment, including those from Fendt and Massey Ferguson.
-- Lowe & Young. AGCO dealer Lowe & Young is opening a parts store in Ashland, Ohio. The new office provides access to equipment components and experienced staff members to customers in Ashland, Erie, Huron, Lorain, Medina and Richland counties. The dealership will also use mobile service trucks for on-site services in the area.
-- Allegiance Ag & Turf. Allegiance Ag & Turf has announced plans to open a new location in Rayville, Louisiana, to serve customers in Caldwell, East Carroll, Franklin, Madison and Tensas parishes. The Rayville location will provide full services for AGCO's brand lineup, including Fendt's track and wheeled tractors, Rogator applicators and IDEAL combines, and Massey Ferguson, including S Series tractors and the 500R Series sprayer. Allegiance Ag & Turf also deploys AGCO's FarmerCore mobile vehicles to expand on-farm support and services.
Dan Miller can be reached at dan.miller@dtn.com
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