MILAN, July 29 Reuters Agricultural and construction machine maker CNH Industrial beat estimates on Friday with a 14 rise in industrial operating profit in the second quarter, but said it anticipated a tougher outlook and was braced for recession in the Americas.

The ItalianAmerican company, whose brands include Case IH, Steyr and New Holland, said adjusted earnings before interest and tax EBIT from industrial activities reached 654 million in the AprilJune period. That topped a 605 million forecast in an analyst poll compiled by Reuters.

Pricing, volumes and favourable mix offset significant cost escalation, Chief Executive Scott Wine said in a statement. He said CNH expected to meet its fullyear guidance, but anticipated a decidedly less advantageous climate for the next several quarters.

By 1220 GMT Milanlisted shares in the group were up 2.3, broadly in line with Italy39;s blue chip index.

Wine cited the strong U.S. dollar impacting soft commodity prices, with potential further deterioration in farmer sentiment and income, and a possible decline of European industrial demand due to the war in Ukraine, energy risks and inflation.

In the Americas, steady demand from cashcrop customers indicates that the market may be more stable, but overall we are positioning for a recession, he added.

CNH Industrial, controlled by Agnelli family39;s Exor, previously guided for fullyear net sales in industrial activities to increase between 10 and 14 in 2022 and for a free…