CNH Industrial sells Russian business
By Neil Gerrard20 April 2023
Construction and agricultural equipment manufacturer CNH Industrial has sold its business in Russia for US$60 million.
The move comes over a year after the start of the war in Ukraine.
In March 2022, shortly after the war started, CNH Industrial announced that it would suspend all supplies to the Russian market.
It continued to guarantee the payment of all employee salaries and other administrative expenses.
The company, which owns the Case and New Holland construction equipment brands, Case IH and New Holland Agriculture, operated a corporate office in the Moscow region, through which it managed the import and export of its products in Russia.
Its industrial footprint included manufacturing sites for agricultural equipment and implements and construction equipment, and a parts depot.
These sites employed approximately 200 employees.
For the fiscal year ending 2021, the last full year of operations, the Russian operations generated revenue of approximately $380 million.
That figure represented 2% of the company’s consolidated revenue in 2021.
During the quarter ended March 31, 2022, CNH Industrial recorded charges of $71 million related to suspending its Russian operations. It has estimated that it will take additional pre-tax charges of approximately $20 million in connection with the divestitures.
Announcing the deal to sell the Russian business, CNH Industrial said in a statement: “We wish to acknowledge our former employees for their years of dedicated service.”