Feb 4 (Reuters) - CNH Industrial ( CNH ) on Tuesday

forecast full-year profit below Wall Street's estimates, and

said it expects weak demand for farm equipments to bottom out by

the year-end, before picking up in 2026.

The Basildon, UK-based company expects sales to be lower

year-over-year in both its agriculture and construction

equipment markets through the year.

Farm equipment demand remains subdued due to falling

farm incomes globally, forcing farmers to rethink their

big-ticket purchases, leading to higher dealership inventories

and moderation in restocking efforts.

The company said it continues producing fewer units than

the retail demand to reduce elevated inventory levels at its

dealers but added that inventories remain high.

"Agriculture dealer inventory went down in Q4 by over $700

million due to focused retail sales support and 34% fewer

production hours," CNH CEO Gerrit Marx said.

The company had an excess dealer inventory of about $1

billion to $1.5 billion in the third quarter.

CNH expects the industry to start bottoming in 2025,

adding that it expects retail demand in North America to

increase gradually in 2026, Marx said on a post-earnings analyst

conference call.

Shares of CNH pared premarket losses to be up about 1.2%

in morning trade.

The company expects pricing to be flat to slightly down in

the first half of 2025 and expects lower margins in the first

two quarters of the year as well.

It expects 2025 adjusted earnings to be in the range of 65

cents to 75 cents per share, below analysts' estimates of 85

cents per share, according to data compiled by LSEG.

The New Holland tractor maker reported fourth-quarter

adjusted profit of 15 cents per share, missing estimates of 18

cents per share.