CNH Industrial N.V. Reports Third Quarter 2024 Results
Third quarter consolidated revenue declined 22%
on lower industry demand
Third quarter diluted EPS at $0.24
Results reflect continued execution of cost savings initiatives
partially offsetting the market headwinds
Full year 2024 guidance lowered to reflect continued weak end
markets and elevated channel inventory levels
Basildon, UK - November
7, 2024 - CNH Industrial N.V. (NYSE:
CNH) today reported results for
the three months ended September 30, 2024, with net income of $310
million and diluted earnings per share of $0.24 compared with net
income of $540 million and diluted earnings per share of $0.40 for
the three months ended September 30, 2023(7).
Consolidated revenues were $4.65 billion (down 22% compared to Q3
2023) and Net sales of Industrial Activities were $4.00 billion
(down 25% compared to Q3 2023). Net cash provided by operating
activities was $791 million and Industrial Free Cash Flow
absorption was $180 million in Q3 2024.
“With the current challenging market conditions
facing farmers across the globe, CNH is implementing decisions to
advance our transformation journey. We have focused on making the
Company’s operations more efficient and on being more responsive to
our customers’ needs. But dealer inventories remain elevated and
will require additional efforts to align with retail demand. As we
further adjust production levels while making investments in
technology and quality-improving processes, we are positioning
ourselves for the long term and cementing our leading position in
the industry. We look forward to sharing more details of our
strategy at our investor day on May 8, 2025.”
Gerrit Marx, Chief Executive
Officer
2024 Third
Quarter Results
(all amounts $ million, comparison vs Q3 2023 -
unless otherwise stated)
Please note that in this and in the following
tables and commentary, prior periods have been revised to reflect
an immaterial correction to the financial statements. See note 7
for further details and a reconciliation to previously reported
amounts.
|
US-GAAP |
|
|
|
Q3 2024 |
|
Q3 2023(7) |
|
Change |
|
Change at
c.c.(1) |
| Consolidated revenue |
|
4,654 |
|
5,986 |
|
(22)% |
|
(21)% |
|
of which Net sales of Industrial Activities |
|
3,997 |
|
5,332 |
|
(25)% |
|
(24)% |
| Net income |
|
310 |
|
540 |
|
(43)% |
|
|
| Diluted EPS $ |
|
0.24 |
|
0.40 |
|
(0.16) |
|
|
| Cash flow provided (used) by
operating activities |
|
791 |
|
232 |
|
+559 |
|
|
| Cash and cash
equivalents(2) |
|
1,801 |
|
4,322 |
|
(2,521) |
|
|
| Gross profit margin of
Industrial Activities |
|
21.7% |
|
23.9% |
|
(220) bps |
|
|
|
NON-GAAP(3) |
|
|
|
Q3 2024 |
|
Q3 2023(7) |
|
Change |
|
| Adjusted EBIT of Industrial
Activities |
|
336 |
|
627 |
|
(46)% |
|
| Adjusted EBIT margin of
Industrial Activities |
|
8.4% |
|
11.8% |
|
(340) bps |
|
| Adjusted net income |
|
304 |
|
540 |
|
(44)% |
|
| Adjusted diluted EPS $ |
|
0.24 |
|
0.40 |
|
(0.16) |
|
| Free cash flow of Industrial
Activities |
|
(180) |
|
(127) |
|
(53) |
|
The decline in Net sales of Industrial
Activities is mainly due to lower shipments on decreased industry
demand and reduced dealer inventory requirements.
Adjusted net income was $304 million with
adjusted diluted earnings per share of $0.24. In comparison, in Q3
2023, adjusted net income was $540 million with adjusted diluted
earnings per share of $0.40. The decrease in adjusted net income is
primarily due to the lower shipment volumes in Agriculture and
Construction.
Income tax expense was $75 million ($171 million
in Q3 2023), and the effective tax rate (ETR) was 20.8% (25.8% in
Q3 2023) with an adjusted ETR(3) of 20.7% for
the third quarter (25.7% in Q3 2023). The Company forecasts full
year 2024 adjusted ETR to be in the range of
22-24%(6).
Cash flow provided by operating activities in
the quarter was $791 million ($232 million provided in Q3 2023).
Free cash flow of Industrial Activities was an outflow of $180
million, consistent with the seasonality of working capital in the
third quarter.
|
Agriculture |
|
($ million) |
|
Q3 2024 |
|
Q3 2023(7) |
|
Change |
|
Change at
c.c.(1) |
| Net sales |
|
3,310 |
|
4,384 |
|
(24)% |
|
(24)% |
| Gross profit margin |
|
22.7% |
|
25.6% |
|
(290) bps |
|
|
| Adjusted EBIT |
|
336 |
|
642 |
|
(48)% |
|
|
| Adjusted EBIT margin |
|
10.2% |
|
14.6% |
|
(440) bps |
|
|
In North America, industry volume was down 18%
year-over-year in the third quarter for tractors under 140 HP and
was down 17% for tractors over 140 HP; combines were down 29%. In
Europe, Middle East and Africa (EMEA), tractor and combine demand
was down 20% and 50%, respectively. South America tractor and
combine demand was down 12% and 32%, respectively, continuing the
negative trend of previous quarters. Asia Pacific tractor demand
was up 1%, while combine demand was down 33%.
Agriculture net sales decreased for the quarter
by 24% to $3.31 billion, primarily due to lower shipment
volumes on decreased industry demand, dealer inventory unit
requirements across all regions and unfavorable net price
realization due to enhanced retail actions.
Adjusted EBIT decreased to $336 million
($642 million in Q3 2023) driven by the lower industry
volumes, partially offset by improved purchasing and manufacturing
costs, and a continued reduction in SG&A expenses. R&D
investments accounted for 6.0% of sales (5.5% in Q3 2023). Adjusted
EBIT margin was 10.2% (14.6% in Q3 2023). The comparative prior
quarter results have been revised to reflect an immaterial
correction of $30 million for the accounting treatment related to
highly inflationary accounting for our unconsolidated affiliate in
Türkiye, TürkTraktör ve Ziraat Makineleri A.S.
|
Construction |
|
($ million) |
|
Q3 2024 |
|
Q3 2023 |
|
Change |
|
Change at
c.c.(1) |
| Net sales |
|
687 |
|
948 |
|
(28)% |
|
(26)% |
| Gross profit margin |
|
16.6% |
|
15.9% |
|
+70 bps |
|
|
| Adjusted EBIT |
|
40 |
|
60 |
|
(33)% |
|
|
| Adjusted EBIT margin |
|
5.8% |
|
6.3% |
|
(50) bps |
|
|
Global industry volume for construction
equipment increased 1% year-over-year in the third quarter for
Heavy construction equipment; Light construction equipment was down
9%. Aggregated demand decreased 16% in EMEA and 7% in North
America, but increased 11% in South America and 3% in Asia
Pacific.
Construction net sales decreased for the quarter
by 28% to $687 million, due to lower volumes driven mainly by
a decrease in market demand across all regions.
Adjusted EBIT decreased to $40 million
($60 million in Q3 2023) as a result of lower volumes and
unfavorable net price realization, partially offset by improved
product costs, better plant efficiencies and lower SG&A
expenses. Adjusted EBIT margin was 5.8% (6.3% in Q3 2023).
|
Financial Services |
|
($ million) |
|
Q3 2024 |
|
Q3 2023 |
|
Change |
|
Change at
c.c.(1) |
| Revenue |
|
659 |
|
653 |
|
+1% |
|
+5% |
| Net income |
|
78 |
|
86 |
|
(9)% |
|
|
| Equity at quarter-end |
|
2,932 |
|
2,610 |
|
+322 |
|
|
| Retail loan originations |
|
2,841 |
|
3,043 |
|
(202) |
|
|
Revenues of Financial Services increased 1% due
to favorable volumes in all regions except EMEA and higher yields
in North America; partially offset by decreased yields in South
America due to product mix, and lower used equipment sales due to
decreased operating lease maturities.
Net income was $78 million in the third
quarter of 2024, a decrease of $8 million compared to the same
quarter of 2023, primarily due to increased risk costs driven by
higher delinquencies in South America, partially offset by higher
volumes and interest margin improvements in most regions.
The managed portfolio (including unconsolidated
joint ventures) was $29.0 billion as of September 30, 2024 (of
which retail was 67% and wholesale was 33%), up $2.2 billion
compared to September 30, 2023 (up $2.2 billion on a constant
currency basis).
At September 30, 2024, the receivables balance
greater than 30 days past due as a percentage of receivables was
down sequentially to 2.2%, however was elevated from prior year
(1.6% as of September 30, 2023) due to economic and environmental
factors, specifically in South America.
2024 Outlook
The Company’s forecast of continued weak
industry retail demand in both the agriculture and construction
equipment markets, coupled with elevated dealer inventories is
requiring lower production levels. CNH will further reduce
production output to manage channel inventory while continuing its
efforts to improve through-cycle margins with its successful cost
reduction programs. Due to the lower productions levels, the
Company is revising its segment net sales and margins and its EPS
results. In addition, because of the adverse net working capital
impact from lowering production levels, the Company is lowering its
Industrial Free Cash Flow forecast. The updated Agriculture
adjusted EBIT margin and adjusted diluted EPS outlook also reflect
the revision for highly inflationary accounting.
CNH is updating its 2024 outlook as follows:
- Agriculture segment
net sales(5) down between 22% and 23%
year-over-year including currency translation effects (from down
15% to 20% previously)
- Agriculture segment
adjusted EBIT margin between 10.5% and 11.5% (from between 13.0%
and 14.0% previously); around 70 bps of the change relates to the
accounting revision
- Construction segment
net sales(5) down between 21% and 22%
year-over-year including currency translation effects (from down
15% to 20% previously)
- Construction segment
adjusted EBIT margin between 5.0% and 6.0% (unchanged)
- Free Cash Flow of
Industrial Activities(6) an outflow
of between $100 million to $300 million, down from
the previous guidance of an inflow between $700 to $900 million,
mainly due to decreased equipment deliveries and the lower
production levels
- Adjusted diluted
EPS(6) between $1.05 to $1.15 (from between
$1.30 to $1.40 previously); around $0.08 of the change relates to
the accounting revision
CNH will host an Investor Day on Thursday, May 8, 2025, to
review its strategic initiatives and targets. The event will be
held at the New York Stock Exchange and will be webcast on the CNH
website. Additional details will be provided closer to the event
date.
Results for
the Nine Months Ended September 30,
2024
(all amounts $ million, comparison vs YTD Q3 2023
- unless otherwise stated)
|
US-GAAP |
|
|
|
YTD Q3 2024 |
|
YTD Q3 2023(7) |
|
Change |
|
Change at
c.c.(1) |
| Consolidated revenue |
|
14,960 |
|
17,895 |
|
(16)% |
|
(16)% |
|
of which Net sales of Industrial Activities |
|
12,931 |
|
16,062 |
|
(19)% |
|
(19)% |
| Net income |
|
1,083 |
|
1,704 |
|
(36)% |
|
|
| Diluted EPS $ |
|
0.85 |
|
1.25 |
|
(0.40) |
|
|
| Cash flow provided (used) by
operating activities |
|
276 |
|
(608) |
|
+884 |
|
|
| Cash and cash
equivalents(2) |
|
1,801 |
|
4,322 |
|
(2,521) |
|
|
| Gross profit margin of
Industrial Activities |
|
22.4% |
|
24.5% |
|
(210) bps |
|
|
|
NON-GAAP(3) |
|
|
|
YTD Q3 2024 |
|
YTD Q3 2023(7) |
|
Change |
|
| Adjusted EBIT of Industrial
Activities |
|
1,210 |
|
1,972 |
|
(39)% |
|
| Adjusted EBIT margin of
Industrial Activities |
|
9.4% |
|
12.3% |
|
(290) bps |
|
| Adjusted net income |
|
1,143 |
|
1,694 |
|
(33)% |
|
| Adjusted diluted EPS $ |
|
0.90 |
|
1.24 |
|
(0.34) |
|
| Free cash flow of Industrial
Activities |
|
(1,249) |
|
(414) |
|
(835) |
|
|
Agriculture |
|
|
|
YTD Q3 2024 |
|
YTD Q3 2023(7) |
|
Change |
|
Change at
c.c.(1) |
| Net sales |
|
10,596 |
|
13,201 |
|
(20)% |
|
(19)% |
| Gross profit margin |
|
23.7% |
|
26.3% |
|
(260) bps |
|
|
| Adjusted EBIT |
|
1,226 |
|
2,001 |
|
(39)% |
|
|
| Adjusted EBIT margin |
|
11.6% |
|
15.2% |
|
(360) bps |
|
|
|
Construction |
|
|
|
YTD Q3 2024 |
|
YTD Q3 2023 |
|
Change |
|
Change at
c.c.(1) |
| Net sales |
|
2,335 |
|
2,861 |
|
(18)% |
|
(18)% |
| Gross profit margin |
|
16.8% |
|
15.9% |
|
+90 bps |
|
|
| Adjusted EBIT |
|
151 |
|
176 |
|
(14)% |
|
|
| Adjusted EBIT margin |
|
6.5% |
|
6.2% |
|
+30 bps |
|
|
|
Financial Services |
|
|
|
YTD Q3 2024 |
|
YTD Q3 2023 |
|
Change |
|
Change at
c.c.(1) |
| Revenue |
|
2,031 |
|
1,805 |
|
+13% |
|
+14% |
| Net income |
|
287 |
|
258 |
|
+11% |
|
|
Notes
CNH reports quarterly and annual consolidated
financial results under U.S. GAAP and annual consolidated financial
results under EU-IFRS. The tables and discussion related to the
financial results of the Company and its segments shown in this
press release are prepared in accordance with U.S. GAAP.
- c.c. means at
constant currency.
- Comparison vs.
December 31, 2023
- This item is a
non-GAAP financial measure. Refer to the “Non-GAAP Financial
Information” section of this press release for information
regarding non-GAAP financial measures. Refer to the specific table
in the “Other Supplemental Financial Information” section of this
press release for the reconciliation between the non-GAAP financial
measure and the most comparable GAAP financial measure.
- Certain
financial information in this report has been presented by
geographic area. Our geographical regions are: (a) North America;
(b) Europe, Middle East and Africa (“EMEA”); (c) South America and
(d) Asia Pacific. The geographic designations have the following
meanings:
- North America:
United States, Canada, and Mexico;
- Europe, Middle
East, and Africa: member countries of the European Union, European
Free Trade Association, the United Kingdom, Ukraine and Balkans,
Russia, Türkiye, Uzbekistan, Pakistan, the African continent, and
the Middle East;
- South America:
Central and South America, and the Caribbean Islands; and
- Asia Pacific:
Continental Asia (including the India subcontinent), Indonesia and
Oceania.
- Net sales
reflecting the exchange rate of 1.09 EUR/USD.
- The Company is
unable to provide this reconciliation without unreasonable effort
due to the uncertainty and inherent difficulty of predicting the
occurrence, the financial impact, and the periods in which the
adjustments may be recognized. For the same reasons, the Company is
unable to address the probable significance of the unavailable
information, which could be material to future results.
- In connection
with the preparation of our condensed consolidated financial
statements for the three months ended September 30, 2024, we have
revised prior periods’ results to reflect an immaterial correction
for the accounting treatment related to highly inflationary
accounting for our unconsolidated affiliate in Türkiye. CNH owns
37.5% of TürkTraktör ve Ziraat Makineleri A.S. (TTRAK.IS) and
accounts for its ownership stake under the equity method. The
functional currency of Türkiye-based TürkTraktör is the Turkish
lira, and the Türkiye economy was deemed highly inflationary in
2022. CNH has determined that its translation criteria from Turkish
lira into CNH’s functional currency of U.S. dollars resulted in an
overstatement of CNH’s Equity in income of unconsolidated
subsidiaries and affiliates by $96 million in 2023 and by $67
million in the first half of 2024. We have revised our GAAP and
Non-GAAP results for all prior periods presented herein. See the
supplemental financial information section below for a
reconciliation of adjustments to prior reported results.
Non-GAAP Financial
Information
CNH monitors its operations through the use of
several non-GAAP financial measures. CNH’s management believes that
these non-GAAP financial measures provide useful and relevant
information regarding its operating results and enhance the
readers’ ability to assess CNH’s financial performance and
financial position. Management uses these non-GAAP measures to
identify operational trends, as well as make decisions regarding
future spending, resource allocations and other operational
decisions as they provide additional transparency with respect to
our core operations. These non-GAAP financial measures have no
standardized meaning under U.S. GAAP and are unlikely to be
comparable to other similarly titled measures used by other
companies and are not intended to be substitutes for measures of
financial performance and financial position as prepared in
accordance with U.S. GAAP.
CNH’s non-GAAP financial measures are defined as
follows:
-
Adjusted EBIT of Industrial Activities under U.S. GAAP is defined
as net income (loss) before the following items: Income taxes,
Financial Services’ results, Industrial Activities’ interest
expenses, net, foreign exchange gains/losses, finance and
non-service component of pension and other post-employment benefit
costs, restructuring expenses, and certain non-recurring items. In
particular, non-recurring items are specifically disclosed items
that management considers rare or discrete events that are
infrequent in nature and not reflective of on-going operational
activities.
-
Adjusted EBIT Margin of Industrial Activities: is computed by
dividing Adjusted EBIT of Industrial Activities by Net Sales of
Industrial Activities.
-
Adjusted Net Income (Loss): is defined as net income (loss), less
restructuring charges and non-recurring items, after tax.
-
Adjusted Diluted EPS: is computed by dividing Adjusted Net Income
(loss) attributable to CNH Industrial N.V. by a weighted average
number of common shares outstanding during the period that takes
into consideration potential common shares outstanding deriving
from the CNH share-based payment awards, when inclusion is not
anti-dilutive. When we provide guidance for adjusted diluted EPS,
we do not provide guidance on an earnings per share basis because
the GAAP measure will include potentially significant items that
have not yet occurred and are difficult to predict with reasonable
certainty prior to year-end.
-
Adjusted Income Tax (Expense) Benefit: is defined as income taxes
less the tax effect of restructuring expenses and non-recurring
items, and non-recurring tax charges or benefits.
-
Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing
a) adjusted income taxes by b) income (loss) before income taxes
and equity in income of unconsolidated subsidiaries and affiliates,
less restructuring expenses and non-recurring items.
-
Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net
Cash (Debt) is defined as total debt less intersegment notes
receivable, cash and cash equivalents, restricted cash, other
current financial assets (primarily current securities, short-term
deposits and investments towards high-credit rating counterparties)
and derivative hedging debt. CNH provides the reconciliation of Net
Cash (Debt) to Total (Debt), which is the most directly comparable
measure included in the consolidated balance sheets. Due to
different sources of cash flows used for the repayment of the debt
between Industrial Activities and Financial Services (by cash from
operations for Industrial Activities and by collection of financing
receivables for Financial Services), management separately
evaluates the cash flow performance of Industrial Activities using
Net Cash (Debt) of Industrial Activities.
-
Free Cash Flow of Industrial Activities (or Industrial Free Cash
Flow): refers to Industrial Activities only, and is computed as
consolidated cash flow from operating activities less: cash flow
from operating activities of Financial Services; investments of
Industrial Activities in assets sold under operating leases,
property, plant and equipment and intangible assets; change in
derivatives hedging debt of Industrial Activities; as well as other
changes and intersegment eliminations.
-
Change excl. FX or Constant Currency: CNH discusses the
fluctuations in revenues on a constant currency basis by applying
the prior year average exchange rates to current year’s revenues
expressed in local currency in order to eliminate the impact of
foreign exchange rate fluctuations.
The tables attached to this press release
provide reconciliations of the non-GAAP measures used in this press
release to the most directly comparable GAAP measures.
Forward-looking Statements
All statements other than statements of
historical fact contained in this press release including
competitive strengths; business strategy; future financial position
or operating results; budgets; projections with respect to revenue,
income, earnings (or loss) per share, capital expenditures,
dividends, liquidity, capital structure or other financial items;
costs; and plans and objectives of management regarding operations
and products, are forward-looking statements. Forward-looking
statements also include statements regarding the future performance
of CNH and its subsidiaries on a standalone basis. These statements
may include terminology such as “may”, “will”, “expect”, “could”,
“should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”,
“continue”, “remain”, “on track”, “design”, “target”, “objective”,
“goal”, “forecast”, “projection”, “prospects”, “plan”, or similar
terminology. Forward-looking statements are not guarantees of
future performance. Rather, they are based on current views and
assumptions and involve known and unknown risks, uncertainties and
other factors, many of which are outside our control and are
difficult to predict. If any of these risks and uncertainties
materialize (or they occur with a degree of severity that the
Company is unable to predict) or other assumptions underlying any
of the forward-looking statements prove to be incorrect, including
any assumptions regarding strategic plans, the actual results or
developments may differ materially from any future results or
developments expressed or implied by the forward-looking
statements.
Factors, risks and uncertainties that could
cause actual results to differ materially from those contemplated
by the forward-looking statements include, among others: economic
conditions in each of our markets, including the significant
uncertainty caused by geopolitical events; production and supply
chain disruptions, including industry capacity constraints,
material availability, and global logistics delays and constraints;
the many interrelated factors that affect consumer confidence and
worldwide demand for capital goods and capital goods-related
products, changes in government policies regarding banking,
monetary and fiscal policy; legislation, particularly pertaining to
capital goods-related issues such as agriculture, the environment,
debt relief and subsidy program policies, trade and commerce and
infrastructure development; government policies on international
trade and investment, including sanctions, import quotas, capital
controls and tariffs; volatility in international trade caused by
the imposition of tariffs, sanctions, embargoes, and trade wars;
actions of competitors in the various industries in which we
compete; development and use of new technologies and technological
difficulties; the interpretation of, or adoption of new, compliance
requirements with respect to engine emissions, safety or other
aspects of our products; labor relations; interest rates and
currency exchange rates; inflation and deflation; energy prices;
prices for agricultural commodities and material price increases;
housing starts and other construction activity; our ability to
obtain financing or to refinance existing debt; price pressure on
new and used equipment; the resolution of pending litigation and
investigations on a wide range of topics, including dealer and
supplier litigation, intellectual property rights disputes, product
warranty and defective product claims, and emissions and/or fuel
economy regulatory and contractual issues; security breaches,
cybersecurity attacks, technology failures, and other disruptions
to the information technology infrastructure of CNH and its
suppliers and dealers; security breaches with respect to our
products; our pension plans and other post-employment obligations;
political and civil unrest; volatility and deterioration of capital
and financial markets, including pandemics (such as the COVID-19
pandemic), terrorist attacks in Europe and elsewhere; the
remediation of a material weakness; our ability to realize the
anticipated benefits from our business initiatives as part of our
strategic plan; including targeted restructuring actions to
optimize our cost structure and improve the efficiency of our
operations; our failure to realize, or a delay in realizing, all of
the anticipated benefits of our acquisitions, joint ventures,
strategic alliances or divestitures and other similar risks and
uncertainties, and our success in managing the risks involved in
the foregoing.
Forward-looking statements are based upon
assumptions relating to the factors described in this press
release, which are sometimes based upon estimates and data received
from third parties. Such estimates and data are often revised.
Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many
of which are outside CNH’s control. CNH expressly disclaims any
intention or obligation to provide, update or revise any
forward-looking statements in this announcement to reflect any
change in expectations or any change in events, conditions or
circumstances on which these forward-looking statements are
based.
Further information concerning CNH, including
factors that potentially could materially affect its financial
results, is included in the Company’s reports and filings with the
U.S. Securities and Exchange Commission ("SEC").
All future written and oral forward-looking statements by CNH or
persons acting on the behalf of CNH are expressly qualified in
their entirety by the cautionary statements contained herein or
referred to above.
Additional factors could cause actual results to differ from
those expressed or implied by the forward-looking statements
included in the Company’s filings with the SEC (including, but not
limited to, the factors discussed in our 2023 Annual Report and
subsequent quarterly reports).
Conference Call and Webcast
On November 8, at 11:30 a.m. EST (4:30 p.m. GMT / 5:30 p.m.
CET), management will hold a conference call to present third
quarter 2024 results to financial analysts and investors. The call
can be followed live online at bit.ly/CNH_Q3_2024 and a
recording will be available later on the Company’s website
www.cnh.com.
CONTACTS
Media Inquiries – Laura Overall
Tel +44 207 925 1964 or Rebecca Fabian Tel +1 312 515 2249
(Email mediarelations@cnh.com)
Investor Relations – Jason
Omerza Tel +1 630 740 8079 or Federico Pavesi Tel +39 345 605
6218
(Email investor.relations@cnh.com)
CNH INDUSTRIAL N.V.
Consolidated Statements of Operations for
the Three and Nine Months Ended September
30, 2024 and 2023
(Unaudited, U.S. GAAP)
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
($ million, except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Revenues |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
3,997 |
|
$ |
5,332 |
|
$ |
12,931 |
|
$ |
16,062 |
|
Finance, interest and other income |
|
657 |
|
654 |
|
2,029 |
|
1,833 |
| Total
Revenues |
|
4,654 |
|
5,986 |
|
14,960 |
|
17,895 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
3,130 |
|
4,059 |
|
10,027 |
|
12,133 |
|
Selling, general and administrative expenses |
|
426 |
|
462 |
|
1,298 |
|
1,385 |
|
Research and development expenses |
|
221 |
|
266 |
|
686 |
|
766 |
|
Restructuring expenses |
|
12 |
|
5 |
|
94 |
|
8 |
|
Interest expense |
|
378 |
|
346 |
|
1,190 |
|
941 |
|
Other, net |
|
127 |
|
186 |
|
449 |
|
536 |
| Total Costs and
Expenses |
|
4,294 |
|
5,324 |
|
13,744 |
|
15,769 |
| |
|
|
|
|
|
|
|
|
| Income (loss) of Consolidated
Group before Income Taxes |
|
360 |
|
662 |
|
1,216 |
|
2,126 |
| Income tax (expense)
benefit |
|
(75) |
|
(171) |
|
(247) |
|
(536) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
25 |
|
49 |
|
114 |
|
114 |
| Net Income
(loss) |
|
310 |
|
540 |
|
1,083 |
|
1,704 |
| Net income attributable to
noncontrolling interests |
|
4 |
|
3 |
|
10 |
|
11 |
| Net Income (loss)
attributable to CNH Industrial N.V. |
|
$ |
306 |
|
$ |
537 |
|
$ |
1,073 |
|
$ |
1,693 |
| |
|
|
|
|
|
|
|
|
| Earnings (loss) per
share attributable to CNH Industrial N.V. |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.24 |
|
$ |
0.40 |
|
$ |
0.85 |
|
$ |
1.27 |
| Diluted |
|
$ |
0.24 |
|
$ |
0.40 |
|
$ |
0.85 |
|
$ |
1.25 |
| Weighted average
shares outstanding (in millions) |
|
|
|
|
|
|
|
|
| Basic |
|
1,251 |
|
1,332 |
|
1,255 |
|
1,337 |
| Diluted |
|
1,254 |
|
1,351 |
|
1,262 |
|
1,355 |
| |
|
|
|
|
|
|
|
|
| Cash dividends
declared per common share |
|
$ |
— |
|
$ |
— |
|
$ |
0.470 |
|
$ |
0.396 |
| |
|
|
|
|
|
|
|
|
These Consolidated Statements of Operations
should be read in conjunction with the Company’s Audited
Consolidated Financial Statements and Notes for the Year Ended
December 31, 2023 included in the Annual Report on Form 10-K. These
Consolidated Statements of Operations represent the consolidation
of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.
Consolidated Balance Sheets as of September 30, 2024
and December 31, 2023
(Unaudited, U.S. GAAP)
| ($ million) |
|
September 30, 2024 |
|
December 31, 2023 |
| Assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,801 |
|
$ |
4,322 |
| Restricted cash |
|
649 |
|
723 |
| Financing receivables,
net |
|
24,062 |
|
24,249 |
| Financial receivables from
Iveco Group N.V. |
|
274 |
|
380 |
| Inventories, net |
|
5,930 |
|
5,545 |
| Property, plant and equipment,
net and equipment under operating lease |
|
3,386 |
|
3,330 |
| Intangible assets, net |
|
4,866 |
|
4,906 |
| Other receivables and
assets |
|
3,065 |
|
2,812 |
| Total
Assets |
|
$ |
44,033 |
|
$ |
46,267 |
| Liabilities and
Equity |
|
|
|
|
| Debt |
|
$ |
27,300 |
|
$ |
27,326 |
| Financial payables to Iveco
Group N.V. |
|
48 |
|
146 |
| Other payables and
liabilities |
|
8,916 |
|
10,645 |
| Total
Liabilities |
|
36,264 |
|
38,117 |
| Redeemable noncontrolling
interest |
|
57 |
|
54 |
| Equity |
|
7,712 |
|
8,096 |
| Total Liabilities and
Equity |
|
$ |
44,033 |
|
$ |
46,267 |
These Consolidated Balance Sheets should be read
in conjunction with the Company’s Audited Consolidated Financial
Statements and Notes for the year ended December 31, 2023 included
in the Annual Report on Form 10-K. These Consolidated Balance
Sheets represent the consolidation of all CNH Industrial N.V.
subsidiaries.
CNH INDUSTRIAL N.V.
Consolidated Statements
of Cash Flows for
the Nine Months Ended September 30, 2024
and 2023
(Unaudited, U.S. GAAP)
| |
|
Nine Months Ended September 30, |
|
($ million) |
|
2024 |
|
2023 |
| Cash Flows from
Operating Activities |
|
|
|
|
|
Net income (loss) |
|
$ |
1,083 |
|
$ |
1,704 |
| Adjustments to reconcile net
income to net cash provided (used) by operating activities: |
|
|
|
|
|
Depreciation and amortization expense excluding assets under
operating lease |
|
315 |
|
276 |
|
Depreciation and amortization expense of assets under operating
lease |
|
139 |
|
140 |
|
(Gain) loss from disposal of assets |
|
7 |
|
21 |
|
Undistributed (income) loss of unconsolidated subsidiaries |
|
(31) |
|
(63) |
|
Other non-cash items |
|
276 |
|
136 |
| Changes in operating assets
and liabilities: |
|
|
|
|
|
Provisions |
|
52 |
|
618 |
|
Deferred income taxes |
|
(31) |
|
(319) |
|
Trade and financing receivables related to sales, net |
|
482 |
|
(1,602) |
|
Inventories, net |
|
(256) |
|
(1,443) |
|
Trade payables |
|
(1,217) |
|
(101) |
|
Other assets and liabilities |
|
(543) |
|
25 |
| Net cash provided (used) by
operating activities |
|
276 |
|
(608) |
| Cash Flows from
Investing Activities |
|
|
|
|
|
Additions to retail receivables |
|
(5,917) |
|
(5,689) |
|
Collections of retail receivables |
|
4,840 |
|
4,308 |
|
Proceeds from sale of assets, net of assets sold under operating
leases |
|
1 |
|
1 |
|
Expenditures for property, plant and equipment and intangible
assets, net of assets under operating lease |
|
(330) |
|
(401) |
|
Expenditures for assets under operating lease |
|
(381) |
|
(384) |
|
Other, net |
|
10 |
|
123 |
| Net cash provided (used) by
investing activities |
|
(1,777) |
|
(2,042) |
| Cash Flows from
Financing Activities |
|
|
|
|
|
Net increase (decrease) in debt |
|
293 |
|
1,962 |
|
Dividends paid |
|
(600) |
|
(531) |
|
Other |
|
(689) |
|
(224) |
| Net cash provided (used) by
financing activities |
|
(996) |
|
1,207 |
| Effect of foreign exchange
rate changes on cash, cash equivalents and restricted cash |
|
(98) |
|
(1) |
| Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
(2,595) |
|
(1,444) |
| Cash, cash equivalents
and restricted cash, beginning of year |
|
5,045 |
|
5,129 |
| Cash, cash equivalents
and restricted cash, end of period |
|
$ |
2,450 |
|
$ |
3,685 |
These Consolidated Statements of Cash Flows
should be read in conjunction with the Company’s Audited
Consolidated Financial Statements and Notes for the year ended
December 31, 2023 included in the Annual Report on Form 10-K. These
Consolidated Statements of Cash Flows represent the consolidation
of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the
Three Months Ended September 30, 2024
and 2023
(Unaudited, U.S. GAAP)
| |
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
|
($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
3,997 |
|
$ |
— |
|
$ — |
|
$ |
3,997 |
|
$ |
5,332 |
|
$ |
— |
|
$ — |
|
$ |
5,332 |
| Finance, interest and other
income |
|
27 |
|
659 |
|
(29) |
(2) |
657 |
|
49 |
|
653 |
|
(48) |
(2) |
654 |
| Total
Revenues |
|
4,024 |
|
659 |
|
(29) |
|
4,654 |
|
5,381 |
|
653 |
|
(48) |
|
5,986 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
3,130 |
|
— |
|
— |
|
3,130 |
|
4,059 |
|
— |
|
— |
|
4,059 |
| Selling, general and
administrative expenses |
|
313 |
|
113 |
|
— |
|
426 |
|
398 |
|
64 |
|
— |
|
462 |
| Research and development
expenses |
|
221 |
|
— |
|
— |
|
221 |
|
266 |
|
— |
|
— |
|
266 |
| Restructuring expenses |
|
12 |
|
— |
|
— |
|
12 |
|
5 |
|
— |
|
— |
|
5 |
| Interest expense |
|
63 |
|
344 |
|
(29) |
(3) |
378 |
|
59 |
|
335 |
|
(48) |
(3) |
346 |
| Other, net |
|
11 |
|
116 |
|
— |
|
127 |
|
47 |
|
139 |
|
— |
|
186 |
| Total Costs and
Expenses |
|
3,750 |
|
573 |
|
(29) |
|
4,294 |
|
4,834 |
|
538 |
|
(48) |
|
5,324 |
| Income (loss) of Consolidated
Group before Income Taxes |
|
274 |
|
86 |
|
— |
|
360 |
|
547 |
|
115 |
|
— |
|
662 |
| Income tax (expense)
benefit |
|
(62) |
|
(13) |
|
— |
|
(75) |
|
(137) |
|
(34) |
|
— |
|
(171) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
20 |
|
5 |
|
— |
|
25 |
|
44 |
|
5 |
|
— |
|
49 |
| Net Income
(loss) |
|
$ |
232 |
|
$ |
78 |
|
$ — |
|
$ |
310 |
|
$ |
454 |
|
$ |
86 |
|
$ — |
|
$ |
540 |
(1) Industrial Activities represents the
enterprise without Financial Services. Industrial Activities
includes the Company’s Agriculture and Construction segments, and
other corporate assets, liabilities, revenues and expenses not
reflected within Financial Services.
(2) Elimination of Financial Services’ interest income
earned from Industrial Activities.
(3) Elimination of Industrial Activities’ interest expense to
Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for
the Nine Months Ended September 30,
2024 and 2023
(Unaudited, U.S. GAAP)
| |
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
|
($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
12,931 |
|
$ |
— |
|
$ — |
|
$ |
12,931 |
|
$ |
16,062 |
|
$ |
— |
|
$ — |
|
$ |
16,062 |
| Finance, interest and other
income |
|
98 |
|
2,031 |
|
(100) |
(2) |
2,029 |
|
153 |
|
1,805 |
|
(125) |
(2) |
1,833 |
| Total
Revenues |
|
13,029 |
|
2,031 |
|
(100) |
|
14,960 |
|
16,215 |
|
1,805 |
|
(125) |
|
17,895 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
10,027 |
|
— |
|
— |
|
10,027 |
|
12,133 |
|
— |
|
— |
|
12,133 |
| Selling, general and
administrative expenses |
|
1,029 |
|
269 |
|
— |
|
1,298 |
|
1,219 |
|
166 |
|
— |
|
1,385 |
| Research and development
expenses |
|
686 |
|
— |
|
— |
|
686 |
|
766 |
|
— |
|
— |
|
766 |
| Restructuring expenses |
|
93 |
|
1 |
|
— |
|
94 |
|
8 |
|
— |
|
— |
|
8 |
| Interest expense |
|
212 |
|
1,078 |
|
(100) |
(3) |
1,190 |
|
189 |
|
877 |
|
(125) |
(3) |
941 |
| Other, net |
|
94 |
|
355 |
|
— |
|
449 |
|
109 |
|
427 |
|
— |
|
536 |
| Total Costs and
Expenses |
|
12,141 |
|
1,703 |
|
(100) |
|
13,744 |
|
14,424 |
|
1,470 |
|
(125) |
|
15,769 |
| Income (loss) of Consolidated
Group before Income Taxes |
|
888 |
|
328 |
|
— |
|
1,216 |
|
1,791 |
|
335 |
|
— |
|
2,126 |
| Income tax (expense)
benefit |
|
(192) |
|
(55) |
|
— |
|
(247) |
|
(447) |
|
(89) |
|
— |
|
(536) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
100 |
|
14 |
|
— |
|
114 |
|
102 |
|
12 |
|
— |
|
114 |
|
Net Income (loss) |
|
$ |
796 |
|
$ |
287 |
|
$ — |
|
$ |
1,083 |
|
$ |
1,446 |
|
$ |
258 |
|
$ — |
|
$ |
1,704 |
(1) Industrial Activities represents the
enterprise without Financial Services. Industrial Activities
includes the Company’s Agriculture and Construction segments, and
other corporate assets, liabilities, revenues and expenses not
reflected within Financial Services.
(2) Elimination of Financial Services’ interest income
earned from Industrial Activities.
(3) Elimination of Industrial Activities’ interest expense to
Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Balance Sheets as of
September 30, 2024 and
December 31, 2023
(Unaudited, U.S. GAAP)
| |
|
September 30, 2024 |
|
December 31, 2023 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
1,358 |
|
$ |
443 |
|
$ |
— |
|
$ |
1,801 |
|
$ |
3,532 |
|
$ |
790 |
|
$ |
— |
|
$ |
4,322 |
| Restricted cash |
|
98 |
|
551 |
|
— |
|
649 |
|
96 |
|
627 |
|
— |
|
723 |
| Financing receivables,
net |
|
267 |
|
24,316 |
|
(521) |
(2) |
24,062 |
|
393 |
|
24,539 |
|
(683) |
(2) |
24,249 |
| Financial receivables from
Iveco Group N.V. |
|
164 |
|
110 |
|
— |
|
274 |
|
302 |
|
78 |
|
— |
|
380 |
| Inventories, net |
|
5,886 |
|
44 |
|
— |
|
5,930 |
|
5,522 |
|
23 |
|
— |
|
5,545 |
| Property, plant and equipment,
net and equipment on operating lease |
|
2,027 |
|
1,359 |
|
— |
|
3,386 |
|
1,951 |
|
1,379 |
|
— |
|
3,330 |
| Intangible assets, net |
|
4,703 |
|
163 |
|
— |
|
4,866 |
|
4,739 |
|
167 |
|
— |
|
4,906 |
| Other receivables and
assets |
|
2,839 |
|
546 |
|
(320) |
(3) |
3,065 |
|
2,622 |
|
536 |
|
(346) |
(3) |
2,812 |
|
Total Assets |
|
$ |
17,342 |
|
$ |
27,532 |
|
$ |
(841) |
|
$ |
44,033 |
|
$ |
19,157 |
|
$ |
28,139 |
|
$ |
(1,029) |
|
$ |
46,267 |
| Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debt |
|
$ |
4,675 |
|
$ |
23,281 |
|
$ |
(656) |
(2) |
$ |
27,300 |
|
$ |
4,433 |
|
$ |
23,721 |
|
$ |
(828) |
(2) |
$ |
27,326 |
| Financial payables to Iveco
Group N.V. |
|
3 |
|
45 |
|
— |
|
48 |
|
6 |
|
140 |
|
— |
|
146 |
| Other payables and
liabilities |
|
7,827 |
|
1,274 |
|
(185) |
(3) |
8,916 |
|
9,357 |
|
1,489 |
|
(201) |
(3) |
10,645 |
| Total Liabilities |
|
12,505 |
|
24,600 |
|
(841) |
|
36,264 |
|
13,796 |
|
25,350 |
|
(1,029) |
|
38,117 |
| Redeemable noncontrolling
interest |
|
57 |
|
— |
|
— |
|
57 |
|
54 |
|
— |
|
— |
|
54 |
| Equity |
|
4,780 |
|
2,932 |
|
— |
|
7,712 |
|
5,307 |
|
2,789 |
|
— |
|
8,096 |
| Total Liabilities and
Equity |
|
$ |
17,342 |
|
$ |
27,532 |
|
$ |
(841) |
|
$ |
44,033 |
|
$ |
19,157 |
|
$ |
28,139 |
|
$ |
(1,029) |
|
$ |
46,267 |
(1) Industrial Activities represents the enterprise without
Financial Services. Industrial Activities includes the Company’s
Agriculture and Construction segments, and other corporate assets,
liabilities, revenues and expenses not reflected within Financial
Services.
(2) This item includes the
elimination of receivables/payables between Industrial Activities
and Financial Services.
(3) This item primarily represents the reclassification of
deferred tax assets/liabilities in the same taxing jurisdiction and
elimination of intercompany activity between Industrial Activities
and Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Statements of Cash Flows for
the Nine Months Ended September 30,
2024 and 2023
(Unaudited, U.S. GAAP)
| |
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Cash Flows from
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
796 |
|
$ |
287 |
|
$ — |
|
$ |
1,083 |
|
$ |
1,446 |
|
$ |
258 |
|
$ — |
|
$ |
1,704 |
| Adjustments to reconcile net
income to net cash provided (used) by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization
expense, excluding assets under operating lease |
|
312 |
|
3 |
|
— |
|
315 |
|
273 |
|
3 |
|
— |
|
276 |
| Depreciation and amortization
expense of assets under operating lease |
|
6 |
|
133 |
|
— |
|
139 |
|
6 |
|
134 |
|
— |
|
140 |
| (Gain) loss from disposal of
assets, net |
|
7 |
|
— |
|
— |
|
7 |
|
21 |
|
— |
|
— |
|
21 |
| Undistributed (income) loss of
unconsolidated subsidiaries |
|
88 |
|
(14) |
|
(105) |
(2) |
(31) |
|
(47) |
|
(12) |
|
(4) |
(2) |
(63) |
| Other non-cash items, net |
|
45 |
|
231 |
|
— |
|
276 |
|
73 |
|
63 |
|
— |
|
136 |
| Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provisions |
|
54 |
|
(2) |
|
— |
|
52 |
|
617 |
|
1 |
|
— |
|
618 |
| Deferred income taxes |
|
17 |
|
(48) |
|
— |
|
(31) |
|
(271) |
|
(48) |
|
— |
|
(319) |
| Trade and financing
receivables related to sales, net |
|
(81) |
|
565 |
|
(2) |
(3) |
482 |
|
(25) |
|
(1,582) |
|
5 |
(3) |
(1,602) |
| Inventories, net |
|
(468) |
|
212 |
|
— |
|
(256) |
|
(1,722) |
|
279 |
|
— |
|
(1,443) |
| Trade payables |
|
(1,154) |
|
(65) |
|
2 |
(3) |
(1,217) |
|
(56) |
|
(40) |
|
(5) |
(3) |
(101) |
| Other assets and
liabilities |
|
(507) |
|
(36) |
|
— |
|
(543) |
|
(174) |
|
199 |
|
— |
|
25 |
| Net cash provided (used) by
operating activities |
|
(885) |
|
1,266 |
|
(105) |
|
276 |
|
141 |
|
(745) |
|
(4) |
|
(608) |
| Cash Flows from
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Additions to retail
receivables |
|
— |
|
(5,917) |
|
— |
|
(5,917) |
|
— |
|
(5,689) |
|
— |
|
(5,689) |
| Collections of retail
receivables |
|
— |
|
4,840 |
|
— |
|
4,840 |
|
— |
|
4,308 |
|
— |
|
4,308 |
| Proceeds from sale of assets
excluding assets sold under operating leases |
|
1 |
|
— |
|
— |
|
1 |
|
1 |
|
— |
|
— |
|
1 |
| Expenditures for property,
plant and equipment and intangible assets excluding assets under
operating lease |
|
(329) |
|
(1) |
|
— |
|
(330) |
|
(397) |
|
(4) |
|
— |
|
(401) |
| Expenditures for assets under
operating lease |
|
(27) |
|
(354) |
|
— |
|
(381) |
|
(26) |
|
(358) |
|
— |
|
(384) |
| Other, net |
|
206 |
|
(195) |
|
(1) |
|
10 |
|
460 |
|
(441) |
|
104 |
|
123 |
| Net cash provided (used) by
investing activities |
|
(149) |
|
(1,627) |
|
(1) |
|
(1,777) |
|
38 |
|
(2,184) |
|
104 |
|
(2,042) |
| Cash Flows from
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in
debt |
|
226 |
|
67 |
|
— |
|
293 |
|
(777) |
|
2,739 |
|
— |
|
1,962 |
| Dividends paid |
|
(600) |
|
(105) |
|
105 |
(2) |
(600) |
|
(531) |
|
(4) |
|
4 |
(2) |
(531) |
| Other |
|
(689) |
|
(1) |
|
1 |
|
(689) |
|
(224) |
|
104 |
|
(104) |
|
(224) |
| Net cash provided (used) by
financing activities |
|
(1,063) |
|
(39) |
|
106 |
|
(996) |
|
(1,532) |
|
2,839 |
|
(100) |
|
1,207 |
| Effect of foreign exchange
rate changes on cash, cash equivalents and restricted cash |
|
(75) |
|
(23) |
|
— |
|
(98) |
|
1 |
|
(2) |
|
— |
|
(1) |
| Net increase
(decrease) in cash and cash equivalents |
|
(2,172) |
|
(423) |
|
— |
|
(2,595) |
|
(1,352) |
|
(92) |
|
— |
|
(1,444) |
| Cash and cash
equivalents, beginning of year |
|
3,628 |
|
1,417 |
|
— |
|
5,045 |
|
3,960 |
|
1,169 |
|
— |
|
5,129 |
| Cash and cash
equivalents, end of period |
|
$ |
1,456 |
|
$ |
994 |
|
$ — |
|
$ |
2,450 |
|
$ |
2,608 |
|
$ |
1,077 |
|
$ — |
|
$ |
3,685 |
(1) Industrial Activities represents the
enterprise without Financial Services. Industrial Activities
includes the Company’s Agriculture and Construction segments, and
other corporate assets, liabilities, revenues and expenses not
reflected within Financial Services.
(2) This item includes the elimination of dividends from
Financial Services to Industrial Activities, which are included in
Industrial Activities net cash provided (used) by operating
activities.
(3) This item includes the elimination of certain minor
activities between Industrial Activities and Financial
Services.
Other Supplemental Financial Information
(Unaudited)
|
Adjusted EBIT of Industrial Activities by
Segment |
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| ($ million) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Industrial Activities
segments |
|
|
|
|
|
|
|
|
|
Agriculture |
|
$ |
336 |
|
$ |
642 |
|
$ |
1,226 |
|
$ |
2,001 |
| Construction |
|
40 |
|
60 |
|
151 |
|
176 |
| Unallocated items,
eliminations and other |
|
(40) |
|
(75) |
|
(167) |
|
(205) |
| Total Adjusted EBIT of
Industrial Activities |
|
$ |
336 |
|
$ |
627 |
|
$ |
1,210 |
|
$ |
1,972 |
|
Reconciliation of Consolidated Net Income under U.S. GAAP
to Adjusted EBIT of Industrial Activities |
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
($ million) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net Income |
|
$ |
310 |
|
$ |
540 |
|
$ |
1,083 |
|
$ |
1,704 |
| Less: Consolidated income tax
expense |
|
(75) |
|
(171) |
|
(247) |
|
(536) |
| Consolidated income
before taxes |
|
385 |
|
711 |
|
1,330 |
|
2,240 |
| Less: Financial Services |
|
|
|
|
|
|
|
|
|
Financial Services Net Income |
|
78 |
|
86 |
|
287 |
|
258 |
|
Financial Services Income Taxes |
|
13 |
|
34 |
|
55 |
|
89 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expense of Industrial Activities, net of Interest income
and eliminations |
|
36 |
|
10 |
|
114 |
|
36 |
|
Foreign exchange (gains) losses, net of Industrial Activities |
|
8 |
|
21 |
|
12 |
|
27 |
|
Finance and non-service component of Pension and other
post-employment benefit costs of Industrial Activities
(1) |
|
— |
|
— |
|
2 |
|
(2) |
| Adjustments for the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
12 |
|
5 |
|
93 |
|
8 |
|
Other discrete items(2) |
|
(14) |
|
— |
|
1 |
|
10 |
| Total Adjusted EBIT of
Industrial Activities |
|
$ |
336 |
|
$ |
627 |
|
$ |
1,210 |
|
$ |
1,972 |
(1) In the three and nine months ended September
30, 2024 and 2023, this item includes the pre-tax gain of
$6 million and $18 million, respectively, as a result of
the amortization over the 4 years of the $101 million positive
impact from the 2021 U.S. healthcare plan modification.
(2) In the three months ended September 30, 2024
this item includes a gain of $14 million for investment fair value
adjustments. In the nine months ended September 30, 2024 this item
includes a loss of $15 million on the sale of certain non-core
product lines and a gain of $14 million for investment fair value
adjustments. In the three months ended September 30, 2023 this item
did not include any discrete items. The nine months ended September
30, 2023 included a loss of $23 million related to the sale of
CNH Industrial Russia and CNH Capital Russia businesses, partially
offset by a gain of $13 million for the fair value
remeasurement of Augmenta and Bennamann.
Other Supplemental Financial Information
(Unaudited)
|
Reconciliation of Total (Debt) to Net Cash (Debt) under
U.S. GAAP |
| |
|
Consolidated |
|
Industrial Activities |
|
Financial Services |
| ($ million) |
|
September 30, 2024 |
|
December 31, 2023 |
|
September 30, 2024 |
|
December 31, 2023 |
|
September 30, 2024 |
|
December 31, 2023 |
|
Third party (debt) |
|
$ |
(27,300) |
|
$ |
(27,326) |
|
$ |
(4,412) |
|
$ |
(4,132) |
|
$ |
(22,888) |
|
$ |
(23,194) |
| Intersegment notes
payable |
|
— |
|
— |
|
(263) |
|
(301) |
|
(393) |
|
(527) |
| Financial payables to Iveco
Group N.V. |
|
(48) |
|
(146) |
|
(3) |
|
(6) |
|
(45) |
|
(140) |
| Total
(Debt)(1) |
|
(27,348) |
|
(27,472) |
|
(4,678) |
|
(4,439) |
|
(23,326) |
|
(23,861) |
| Cash and cash equivalents |
|
1,801 |
|
4,322 |
|
1,358 |
|
3,532 |
|
443 |
|
790 |
| Restricted cash |
|
649 |
|
723 |
|
98 |
|
96 |
|
551 |
|
627 |
| Intersegment notes
receivable |
|
— |
|
— |
|
393 |
|
527 |
|
263 |
|
301 |
| Financial receivables from
Iveco Group N.V. |
|
274 |
|
380 |
|
164 |
|
302 |
|
110 |
|
78 |
| Derivatives hedging debt |
|
(2) |
|
(41) |
|
(22) |
|
(34) |
|
20 |
|
(7) |
| Net Cash
(Debt)(2) |
|
$ |
(24,626) |
|
$ |
(22,088) |
|
$ |
(2,687) |
|
$ |
(16) |
|
$ |
(21,939) |
|
$ |
(22,072) |
(1) Total (Debt) of Industrial Activities
includes Intersegment notes payable to Financial Services of $263
million and $301 million as of September 30, 2024 and
December 31, 2023, respectively. Total (Debt) of Financial
Services includes Intersegment notes payable to Industrial
Activities of $393 million and $527 million as of
September 30, 2024 and December 31, 2023,
respectively.
(2) The net intersegment
receivable/(payable) balance recorded by Financial Services
relating to Industrial Activities was $(130) million and $(226)
million as of September 30, 2024 and December 31, 2023,
respectively.
|
Reconciliation of Net Cash Provided (Used) by Operating
Activities to Free Cash Flow of Industrial Activities under U.S.
GAAP |
|
Nine Months Ended September 30, |
|
|
|
Three Months Ended September 30, |
|
2024 |
|
2023 |
|
($ million) |
|
2024 |
|
2023 |
|
$ |
276 |
|
$ |
(608) |
|
Net cash provided (used) by Operating
Activities |
|
$ |
791 |
|
$ |
232 |
|
(1,161) |
|
749 |
|
Cash flows from Operating
Activities of Financial Services, net of eliminations |
|
(839) |
|
(141) |
|
12 |
|
2 |
|
Change in derivatives hedging
debt of Industrial Activities and other |
|
13 |
|
(2) |
|
(27) |
|
(26) |
|
Investments in assets sold
under operating lease assets of Industrial Activities |
|
(16) |
|
(17) |
|
(329) |
|
(397) |
|
Investments in property, plant
and equipment, and intangible assets of Industrial Activities |
|
(123) |
|
(176) |
|
(20) |
|
(134) |
|
Other
changes(1) |
|
(6) |
|
(23) |
|
$ |
(1,249) |
|
$ |
(414) |
|
Free cash flow of
Industrial Activities |
|
$ |
(180) |
|
$ |
(127) |
(1) This item primarily includes capital increases in
intersegment investments and change in financial receivables.
Other Supplemental Financial Information
(Unaudited)
|
Reconciliation of Adjusted Net Income and Adjusted Income
Tax (Expense) Benefit to Net Income (Loss) and Income Tax (Expense)
Benefit and Calculation of Adjusted Diluted EPS and Adjusted ETR
under U.S. GAAP |
Nine Months Ended
September 30, |
|
|
|
Three Months Ended
September 30, |
|
2024 |
|
2023 |
|
($ million) |
|
2024 |
|
2023 |
|
$ |
1,083 |
|
$ |
1,704 |
|
Net income (loss) |
|
$ |
310 |
|
$ |
540 |
|
77 |
|
— |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(8) |
|
(1) |
|
(17) |
|
(10) |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
2 |
|
1 |
|
$ |
1,143 |
|
$ |
1,694 |
|
Adjusted net income
(loss) |
|
$ |
304 |
|
$ |
540 |
|
$ |
1,133 |
|
$ |
1,683 |
|
Adjusted net income (loss)
attributable to CNH Industrial N.V. |
|
$ |
300 |
|
$ |
537 |
|
1,262 |
|
1,355 |
|
Weighted average shares
outstanding – diluted (million) |
|
1,254 |
|
1,351 |
|
0.90 |
|
1.24 |
|
Adjusted diluted EPS
($) |
|
0.24 |
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,216 |
|
$ |
2,126 |
|
Income (loss) of
Consolidated Group before income tax (expense)
benefit |
|
$ |
360 |
|
$ |
662 |
|
77 |
|
— |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(8) |
|
(1) |
|
$ |
1,293 |
|
$ |
2,126 |
|
Adjusted income (loss)
before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (A) |
|
$ |
352 |
|
$ |
661 |
|
|
|
|
|
|
|
|
|
|
|
$ |
(247) |
|
$ |
(536) |
|
Income tax (expense)
benefit |
|
$ |
(75) |
|
$ |
(171) |
|
(17) |
|
(10) |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
2 |
|
1 |
|
$ |
(264) |
|
$ |
(546) |
|
Adjusted income tax
(expense) benefit (B) |
|
$ |
(73) |
|
$ |
(170) |
|
|
|
|
|
|
|
|
|
|
|
20.4 % |
|
25.7 % |
|
Adjusted Effective Tax
Rate (Adjusted ETR) (C=B/A) |
|
20.7 % |
|
25.7 % |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
a) Adjustments
impacting Income (loss) before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and
affiliates |
|
|
|
|
|
$ |
94 |
|
$ |
8 |
|
Restructuring expenses |
|
$ |
12 |
|
$ |
5 |
|
(18) |
|
(18) |
|
Pre-tax gain related to the
2021 modification of a healthcare plan in the U.S. |
|
(6) |
|
(6) |
|
— |
|
17 |
|
Loss on sale of Industrial
Activities, Russia Operations |
|
— |
|
— |
|
— |
|
6 |
|
Loss on sale of Financial
Services, Russia Operations |
|
— |
|
— |
|
15 |
|
— |
|
Sale of certain non-core
product lines |
|
— |
|
— |
|
(14) |
|
(13) |
|
Investment fair value
adjustments |
|
(14) |
|
— |
|
$ |
77 |
|
$ |
— |
|
Total |
|
$ |
(8) |
|
$ |
(1) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
b) Adjustments
impacting Income tax (expense) benefit |
|
|
|
|
|
$ |
(17) |
|
$ |
(10) |
|
Tax effect of adjustments
impacting Income (loss) before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and affiliates |
|
$ |
2 |
|
$ |
1 |
|
— |
|
— |
|
Adjustment to valuation
allowances on deferred tax assets |
|
— |
|
— |
|
$ |
(17) |
|
$ |
(10) |
|
Total |
|
$ |
2 |
|
$ |
1 |
Other Supplemental Financial
Information
(Unaudited)
Revision of Prior Period Financial
Statements: In connection with the preparation of our
condensed consolidated financial statements for the three months
ended September 30, 2024, we have revised prior periods’ results to
reflect an immaterial correction for the accounting treatment
related to highly inflationary accounting for our unconsolidated
affiliate in Türkiye. CNH owns 37.5% of TürkTraktör ve Ziraat
Makineleri A.S. (TTRAK.IS) and accounts for its ownership stake
under the equity method. The functional currency of Türkiye-based
TürkTraktör is the Turkish lira, and the Türkiye economy was deemed
highly inflationary in 2022. CNH has determined that its
translation criteria from Turkish lira into CNH’s functional
currency of U.S. dollars resulted in an overstatement of CNH’s
Equity in income of unconsolidated subsidiaries and affiliates by
$96 million in 2023 and by $67 million in the first half of 2024.
Impacts in 2022 were included in the 2023 amount. We have revised
our GAAP and Non-GAAP results for all prior periods presented
herein. Quarterly and annual impact of the revisions are as
follows:
The prior period impacts to the Company’s
consolidated statements of operations and the related impacts to
the statements of consolidated comprehensive income are as
follows.
| |
|
Three Months Ended
September 30, 2023 |
|
Nine Months Ended
September 30, 2023 |
|
($ million, except EPS) |
|
Previously Reported |
Revision Impacts |
As Revised |
|
Previously Reported |
Revision Impacts |
As Revised |
| Income (loss) of
Consolidated Group before Income Taxes |
|
$ |
662 |
$ |
— |
$ |
662 |
|
$ |
2,126 |
$ |
— |
$ |
2,126 |
|
Income tax expense |
|
(171) |
— |
(171) |
|
(536) |
— |
(536) |
|
Equity in income of unconsolidated subsidiaries and affiliates |
|
79 |
(30) |
49 |
|
176 |
(62) |
114 |
| Net income
(loss) |
|
570 |
(30) |
540 |
|
1,766 |
(62) |
1,704 |
|
Net income (loss) attributable to noncontrolling interests |
|
3 |
— |
3 |
|
11 |
— |
11 |
|
Net income (loss) attributable to CNH Industrial
N.V. |
|
$ |
567 |
$ |
(30) |
$ |
537 |
|
$ |
1,755 |
$ |
(62) |
$ |
1,693 |
| |
|
|
|
|
|
|
|
|
| Earnings per share
attributable to common shareholders |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.43 |
$ |
(0.03) |
$ |
0.40 |
|
$ |
1.31 |
$ |
(0.04) |
$ |
1.27 |
|
Diluted |
|
$ |
0.42 |
$ |
(0.02) |
$ |
0.40 |
|
$ |
1.30 |
$ |
(0.05) |
$ |
1.25 |
The prior period impacts to the Company's Consolidated Balance
Sheets are as follows:
| |
|
December 31, 2023 |
| ($ million) |
|
Previously Reported |
Revision Impacts |
As Revised |
| Assets |
|
|
|
|
| Investments in unconsolidated
subsidiaries and affiliates(1) |
|
563 |
(84) |
479 |
|
Total Assets |
|
$ |
46,351 |
$ |
(84) |
$ |
46,267 |
| Liabilities and
Equity |
|
|
|
|
| Total
Liabilities |
|
38,117 |
— |
38,117 |
| Redeemable
equity |
|
54 |
— |
54 |
| Retained earnings |
|
9,750 |
(96) |
9,654 |
| Accumulated other
comprehensive loss |
|
(2,374) |
12 |
(2,362) |
| Total
Equity |
|
8,180 |
(84) |
8,096 |
| Total Liabilities and
Equity |
|
$ |
46,351 |
$ |
(84) |
$ |
46,267 |
(1) Included in Other Receivables and Assets on
the Consolidated Balance Sheets.
Other Supplemental Financial
Information
(Unaudited)
The prior period impacts to the Company's Consolidated Statement
of Cash Flows are as follows:
| |
|
Nine Months Ended
September 30, 2023 |
| ($ million) |
|
Previously Reported |
Revision Impacts |
As Revised |
| Cash Flows from
Operating Activities |
|
|
|
|
|
Net Income (loss) |
|
$ |
1,766 |
$ |
(62) |
$ |
1,704 |
|
Adjustments to reconcile net income (loss) to net cash provided
(used) by operating activities: |
|
|
|
|
|
Undistributed income of unconsolidated subsidiaries |
|
(125) |
62 |
(63) |
| Net cash provided (used) by
operating activities |
|
$ |
(608) |
$ |
— |
$ |
(608) |
Other Supplemental Financial Information
(Unaudited)
| ($ million, except EPS) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
H1 2024 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity in
income of unconsolidated subsidiaries and affiliates |
|
|
|
As reported |
$ |
33 |
|
$ |
64 |
|
$ |
79 |
|
$ |
98 |
|
$ |
274 |
|
$ |
77 |
|
$ |
79 |
|
$ |
156 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| As revised |
$ |
18 |
|
$ |
47 |
|
$ |
49 |
|
$ |
64 |
|
$ |
178 |
|
$ |
44 |
|
$ |
45 |
|
$ |
89 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As reported |
$ |
486 |
|
$ |
710 |
|
$ |
570 |
|
$ |
617 |
|
$ |
2,383 |
|
$ |
402 |
|
$ |
438 |
|
$ |
840 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| As revised |
$ |
471 |
|
$ |
693 |
|
$ |
540 |
|
$ |
583 |
|
$ |
2,287 |
|
$ |
369 |
|
$ |
404 |
|
$ |
773 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income (loss) attributable to CNH Industrial N.V. |
| As reported |
$ |
482 |
|
$ |
706 |
|
$ |
567 |
|
$ |
616 |
|
$ |
2,371 |
|
$ |
401 |
|
$ |
433 |
|
$ |
834 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| As revised |
$ |
467 |
|
$ |
689 |
|
$ |
537 |
|
$ |
582 |
|
$ |
2,275 |
|
$ |
368 |
|
$ |
399 |
|
$ |
767 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings
per share attributable to CNH Industrial N.V. - Basic |
| As reported |
$ |
0.36 |
|
$ |
0.53 |
|
$ |
0.43 |
|
$ |
0.47 |
|
$ |
1.78 |
|
$ |
0.32 |
|
$ |
0.34 |
|
$ |
0.66 |
| Revision impacts |
(0.01) |
|
(0.02) |
|
(0.03) |
|
(0.03) |
|
(0.07) |
|
(0.03) |
|
(0.02) |
|
(0.05) |
| As revised |
$ |
0.35 |
|
$ |
0.51 |
|
$ |
0.40 |
|
$ |
0.44 |
|
$ |
1.71 |
|
$ |
0.29 |
|
$ |
0.32 |
|
$ |
0.61 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings
per share attributable to CNH Industrial N.V. -
Diluted |
| As reported |
$ |
0.35 |
|
$ |
0.52 |
|
$ |
0.42 |
|
$ |
0.46 |
|
$ |
1.76 |
|
$ |
0.31 |
|
$ |
0.34 |
|
$ |
0.66 |
| Revision impacts |
(0.01) |
|
(0.01) |
|
(0.02) |
|
(0.02) |
|
(0.07) |
|
(0.02) |
|
(0.02) |
|
(0.05) |
| As revised |
$ |
0.34 |
|
$ |
0.51 |
|
$ |
0.40 |
|
$ |
0.44 |
|
$ |
1.69 |
|
$ |
0.29 |
|
$ |
0.32 |
|
$ |
0.61 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net
income(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As reported |
$ |
475 |
|
$ |
711 |
|
$ |
570 |
|
$ |
557 |
|
$ |
2,313 |
|
$ |
421 |
|
$ |
485 |
|
$ |
906 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| As revised |
$ |
460 |
|
$ |
694 |
|
$ |
540 |
|
$ |
523 |
|
$ |
2,217 |
|
$ |
388 |
|
$ |
451 |
|
$ |
839 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted diluted
EPS(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As reported |
$ |
0.35 |
|
$ |
0.52 |
|
$ |
0.42 |
|
$ |
0.42 |
|
$ |
1.70 |
|
$ |
0.33 |
|
$ |
0.38 |
|
$ |
0.71 |
| Revision impacts |
(0.01) |
|
(0.01) |
|
(0.02) |
|
(0.03) |
|
(0.07) |
|
(0.03) |
|
(0.03) |
|
(0.05) |
| As revised |
$ |
0.34 |
|
$ |
0.51 |
|
$ |
0.40 |
|
$ |
0.39 |
|
$ |
1.63 |
|
$ |
0.30 |
|
$ |
0.35 |
|
$ |
0.66 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted
EBIT of Industrial Activities(1) |
| As reported |
$ |
555 |
|
$ |
822 |
|
$ |
657 |
|
$ |
696 |
|
$ |
2,730 |
|
$ |
405 |
|
$ |
536 |
|
$ |
941 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| As revised |
$ |
540 |
|
$ |
805 |
|
$ |
627 |
|
$ |
662 |
|
$ |
2,634 |
|
$ |
372 |
|
$ |
502 |
|
$ |
874 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted
EBIT margin of Industrial Activities(1) |
| As reported |
11.6% |
|
13.8% |
|
12.3% |
|
11.6% |
|
12.4% |
|
9.8% |
|
11.2% |
|
10.5% |
| Revision impacts |
(0.3)% |
|
(0.3)% |
|
(0.5)% |
|
(0.6)% |
|
(0.5)% |
|
(0.8)% |
|
(0.7)% |
|
(0.7)% |
| As revised |
11.3% |
|
13.5% |
|
11.8% |
|
11.0% |
|
11.9% |
|
9.0% |
|
10.5% |
|
9.8% |
Other Supplemental Financial Information
(Unaudited)
| ($ million) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
H1 2024 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted
EBIT of
Agriculture(1) |
|
|
|
As reported |
$ |
570 |
|
$ |
821 |
|
$ |
672 |
|
$ |
669 |
|
$ |
2,732 |
|
$ |
421 |
|
$ |
536 |
|
$ |
957 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| As revised |
$ |
555 |
|
$ |
804 |
|
$ |
642 |
|
$ |
635 |
|
$ |
2,636 |
|
$ |
388 |
|
$ |
502 |
|
$ |
890 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted
EBIT Margin of
Agriculture(1) |
| As reported |
14.5 % |
|
16.8 % |
|
15.3 % |
|
13.5 % |
|
15.1 % |
|
12.5 % |
|
13.7 % |
|
13.1 % |
| Revision impacts |
(0.4) % |
|
(0.4) % |
|
(0.7) % |
|
(0.7) % |
|
(0.6) % |
|
(1.0) % |
|
(0.9) % |
|
(0.9) % |
| As revised |
14.1 % |
|
16.4 % |
|
14.6 % |
|
12.8 % |
|
14.5 % |
|
11.5 % |
|
12.8 % |
|
12.2 % |
(1) This is a non-GAAP financial measure. See reconciliation to
the most comparable U.S. GAAP financial measure below.
The following table includes the reconciliation
of Adjusted EBIT for Industrial Activities to net income, the most
comparable U.S. GAAP financial measure:
|
($ million) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
H1 2024 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) - as reported |
$ |
486 |
|
$ |
710 |
|
$ |
570 |
|
$ |
617 |
|
$ |
2,383 |
|
$ |
402 |
|
$ |
438 |
|
$ |
840 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| Net income (loss) - as
revised |
471 |
|
693 |
|
540 |
|
583 |
|
2,287 |
|
369 |
|
404 |
|
773 |
| Less: Consolidated income tax
expense |
(173) |
|
(192) |
|
(171) |
|
(58) |
|
(594) |
|
(77) |
|
(95) |
|
(172) |
| Consolidated income
before taxes |
644 |
|
885 |
|
711 |
|
641 |
|
2,881 |
|
446 |
|
499 |
|
945 |
| Less: Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services Net Income |
78 |
|
94 |
|
86 |
|
113 |
|
371 |
|
118 |
|
91 |
|
209 |
|
Financial Services Income Taxes |
29 |
|
26 |
|
34 |
|
47 |
|
136 |
|
19 |
|
23 |
|
42 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense of Industrial Activities, net of Interest income
and eliminations |
4 |
|
22 |
|
10 |
|
40 |
|
76 |
|
32 |
|
46 |
|
78 |
|
Foreign exchange (gains) losses, net of Industrial Activities |
6 |
|
— |
|
21 |
|
78 |
|
105 |
|
— |
|
4 |
|
4 |
|
Finance and non-service component of Pension and other
post-employment benefit costs of Industrial Activities |
(1) |
|
(1) |
|
— |
|
6 |
|
4 |
|
1 |
|
1 |
|
2 |
| Adjustments for the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expenses |
1 |
|
2 |
|
5 |
|
57 |
|
65 |
|
30 |
|
51 |
|
81 |
|
Other discrete items |
(7) |
|
17 |
|
— |
|
— |
|
10 |
|
— |
|
15 |
|
15 |
| Total Adjusted EBIT of
Industrial Activities |
$ |
540 |
|
$ |
805 |
|
$ |
627 |
|
$ |
662 |
|
$ |
2,634 |
|
$ |
372 |
|
$ |
502 |
|
$ |
874 |
Other Supplemental Financial Information
(Unaudited)
The following table includes the reconciliation
of adjusted net income to net income, the most comparable U.S. GAAP
financial measure and a calculation of the revised adjusted diluted
EPS:
| ($ million, except EPS) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
H1 2024 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) - as reported |
$ |
486 |
|
$ |
710 |
|
$ |
570 |
|
$ |
617 |
|
$ |
2,383 |
|
$ |
402 |
|
$ |
438 |
|
$ |
840 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| Net income (loss) - as
revised |
471 |
|
693 |
|
540 |
|
583 |
|
2,287 |
|
369 |
|
404 |
|
773 |
| Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates |
(12) |
|
13 |
|
(1) |
|
53 |
|
53 |
|
25 |
|
60 |
|
85 |
| Adjustments impacting Income
tax (expense) benefit |
1 |
|
(12) |
|
1 |
|
(113) |
|
(123) |
|
(6) |
|
(13) |
|
(19) |
| Adjusted net income
(loss) |
460 |
|
694 |
|
540 |
|
523 |
|
2,217 |
|
388 |
|
451 |
|
839 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income (loss)
attributable to CNH Industrial N.V. - as reported |
471 |
|
707 |
|
567 |
|
556 |
|
2,301 |
|
420 |
|
480 |
|
900 |
| Revision impacts |
(15) |
|
(17) |
|
(30) |
|
(34) |
|
(96) |
|
(33) |
|
(34) |
|
(67) |
| Adjusted net income (loss)
attributable to CNH Industrial N.V. - as revised |
$ |
456 |
|
$ |
690 |
|
$ |
537 |
|
$ |
522 |
|
$ |
2,205 |
|
$ |
387 |
|
$ |
446 |
|
$ |
833 |
| Weighted average shares
outstanding – diluted (million) |
1,359 |
|
1,355 |
|
1,351 |
|
1,334 |
|
1,350 |
|
1,274 |
|
1,260 |
|
1,267 |
| Adjusted diluted EPS
($) |
$ |
0.34 |
|
$ |
0.51 |
|
$ |
0.40 |
|
$ |
0.39 |
|
$ |
1.63 |
|
$ |
0.30 |
|
$ |
0.35 |
|
$ |
0.66 |
- 20241107_PR_CNH_Q3_Results_2024
CNH Industrial NV (BIT:1CNHI)
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