CNH Industrial (NYSE:CNHI) on Tuesday fell as much as 12% to hit a three-year low after the maker of farming and construction machinery said revenue growth will be less than previously estimated because of weakness in South America.
Management lowered its estimate for year-end sales growth to a range of 3% to 6% including the effects of foreign exchange. In August, it had expected a yearly growth rate of 8% to 11%.
Net sales of for its industrial machinery unit slipped 1% to $5.33 billion. The decline was attributed to lower demand for agricultural equipment, especially in South America. The Europe, Middle East and Africa (EMEA) region saw slumping demand for combines.
CNH’s (CNHI) profit and revenue were less than expected for the three-month period ended September 30.
Its profit advanced 2% from a year earlier to $570 million, or $0.42 a share, in the third quarter from $559 million, or $0.41 a share, a year earlier.
Analysts had estimated earnings of $0.43 a share.
Revenue rose 2% to $5.99 billion, compared with the consensus estimate of $6.21 billion.