CNH Industrial reported Financial Services’ revenues totaled $399 million in Q2/16, a 5.7% decrease compared to the same period in 2015 (down 3.4% on a constant currency basis), due to a lower average portfolio, a reduction in interest spreads and the negative impact of currency translation.

In Q2/16, retail loan originations (including unconsolidated joint ventures) were $2.3 billion, down $0.1 billion compared to the Q2/15 primarily due to the decline in agricultural equipment sales. The managed portfolio (including unconsolidated joint ventures) of $25.3 billion as of June 30, 2016 (of which retail was 64% and wholesale 36%) was down $0.1 billion compared to June 30, 2015 (up $0.2 billion on a constant currency basis).

Net income in Q2/16 was $87 million, a decrease of $11 million from $98 million over the same period in 2015, primarily due to the lower average portfolio and the reduction in interest spreads.

Equipment Segment Performance

Agricultural Equipment’s net sales decreased 7.5% in Q2/16 compared to the same period in 2015 (down 6.3% on a constant currency basis), as a result of lower industry volume, unfavorable product mix in the row crop sector in NAFTA and unfavorable industry volume in the small grain sector in EMEA. Net sales increased in APAC, mainly driven by higher volume in Australia. Sales in specialty tractors and harvesters in EMEA remain strong, and in LATAM sugar cane harvester demand offset the industry decline for tractors.

Construction Equipment’s net sales decreased 19.6% for Q2/16 compared to the same period in 2015 (down 18.4% on a constant currency basis), due to negative industry volumes primarily in the heavy product class in all regions.

Commercial Vehicles’ net sales increased 5.1% for Q2/16 compared to the same period in 2015 (up 6.0% on a constant currency basis), as a result of increased truck deliveries in EMEA. In LATAM, net sales decreased due to lower industry volumes in Brazil and Argentina. Specialty vehicle unit deliveries declined 53% as a result of reduced deliveries of defense vehicles in Europe.