Aug 1 (Reuters) - Farm and construction equipment maker

CNH Industrial ( CNH ) reported second-quarter profit and

revenue above Wall Street estimates on Friday, as its ongoing

effort to reduce costs helped offset pressures from lower sales

and production.

The Basildon, UK-based company has been producing tractors

and combines below retail demand to reduce excess dealer

inventories, as it manages through a cyclical period of lower

sales - a strategy also adopted by peers Deere, AGCO ( AGCO )

and Caterpillar ( CAT ).

CNH expects 2025 sales to drop below last year's levels and

warns that, combined with reduced production, this will likely

put further pressure on its margins. However, its efforts to

reduce costs will partially mitigate the erosion.

Demand for new equipment has taken a hit from a prolonged

weakness in farmer income and weak commodity prices, prompting

manufacturers to scale back production as farmers postpone or

reassess major purchase decisions.

Shares of the company, famous for its Case IH and New

Holland brands, rose 1.6% in pre-market trading. They have risen

more than 14% since the start of the year.

CNH reported an adjusted profit of 17 cents per share for

the quarter ended June 30, above analysts' expectations of 14

cents per share, according to data complied by LSEG.

Its total costs and expenses in the reported quarter dropped

to $4.43 billion, from $5.03 billion last year.

Quarterly revenue fell 14% to $4.71 billion, but was above

analysts' estimates of $4.17 billion.

The company reaffirmed its full-year outlook, but cautioned

that ongoing uncertainty surrounding U.S. trade policy,

potential responses from global trading partners, and their

broader impacts could influence its projections.