Q3 consolidated revenue and net income both
increased by 2% year-over-year
Amid softer demand in certain product categories
and South America, segments improved profitability by executing
cost containment actions
Agriculture segment adjusted EBIT margin up 50
bps year-over-year to 15.3%, despite net sales declining by 3%
Construction segment adjusted EBIT margin up 360
bps year-over-year to 6.3%, with net sales increasing by 6%
Announcing immediate restructuring program to be
followed by a thorough review of SG&A cost structure
Basildon, UK - November 7, 2023 - CNH
Industrial N.V. (NYSE: CNHI / MI: CNHI) today reported
results for the three months ended September 30, 2023 with net
income of $570 million and diluted earnings per share of $0.42
compared with net income of $559 million and diluted earnings per
share of $0.41 for the three months ended September 30, 2022.
Consolidated revenues were $5.99 billion (up approximately 2%
compared to Q3 2022) and Net sales for Industrial Activities were
$5.33 billion (a decrease of approximately 1% compared to Q3 2022).
Net cash provided by operating activities was $232 million and
Industrial Free Cash Flow absorption was $127 million in Q3.
Financial results presented under U.S. GAAP
“CNH achieved record margins in our Agriculture
and Construction segments, even as some markets began to soften.
Balancing continued investments in iron and technology with
aggressive cost containment positions us to maintain our full year
adjusted EPS target of around $1.70 and demonstrate higher
through-the-cycle margins. We will complement our continuous
improvement initiatives with targeted restructuring to enhance
operational efficiencies and optimize our organization. Our
precision technology evolution is accelerating as we execute our
longstanding plan to reduce our reliance on third parties. I would
like to thank our employees and dealers for their unyielding
commitment to ensuring CNH and its brands deliver for our
customers.”
Scott W. Wine, Chief Executive
Officer
2023 Third
Quarter Results
(all amounts $ million, comparison vs Q3 2022 -
unless otherwise stated)
US-GAAP |
|
|
Q3 2023 |
|
Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Consolidated revenue |
|
5,986 |
|
5,881 |
|
+2% |
|
—% |
of which Net sales of Industrial Activities |
|
5,332 |
|
5,396 |
|
(1)% |
|
(3)% |
Net income |
|
570 |
|
559 |
|
+2% |
|
|
Diluted EPS $ |
|
0.42 |
|
0.41 |
|
+0.01 |
|
|
Cash flow from operating
activities |
|
232 |
|
272 |
|
(40) |
|
|
Cash and cash
equivalents(2) |
|
2,979 |
|
4,376 |
|
(1,397) |
|
|
Gross profit margin of
Industrial Activities |
|
23.9% |
|
23.0% |
|
+90 bps |
|
|
NON-GAAP(3) |
|
|
Q3 2023 |
|
Q3 2022 |
|
Change |
|
Adjusted EBIT of Industrial
Activities |
|
657 |
|
670 |
|
(13) |
|
Adjusted EBIT margin of
Industrial Activities |
|
12.3% |
|
12.4% |
|
-10 bps |
|
Adjusted net income |
|
570 |
|
557 |
|
+13 |
|
Adjusted diluted EPS $ |
|
0.42 |
|
0.41 |
|
+0.01 |
|
Free cash flow of Industrial
Activities |
|
(127) |
|
202 |
|
(329) |
|
|
|
|
|
|
|
|
|
Net sales of Industrial Activities were $5.33
billion, a decrease of 1% when compared to the corresponding period
from the previous year. This decline is mainly due to lower
industry demand in Agriculture, especially in South America and in
EMEA for combines. Pricing continued to be favorable for both
Industrial segments, and Construction net sales grew by
approximately 6%.
Net income was $570 million, with diluted
earnings per share of $0.42 (net income of $559 million in Q3 2022,
with diluted earnings per share of $0.41). In Q3 2023, the impact
of adjusting items on net income and diluted earnings per share was
neutral. In comparison, in Q3 2022, CNH Industrial N.V. reported
adjusted net income of $557 million and adjusted diluted earnings
per share of $0.41.
Gross profit margin of Industrial Activities was
23.9% (23.0% in Q3 2022) with improvement from the corresponding
period from the previous year in both Agriculture and Construction,
reflective of favorable price realization and of improving
operating performance.
Reported income tax expense was $171 million
($192 million in Q3 2022), and effective tax rate (ETR) was 25.8%
(26.3% in Q3 2022) with adjusted ETR(3) of 25.7% for the third
quarter of 2023 (26.2% in Q3 2022).
Cash flow provided by operating activities in
the quarter was $232 million ($272 million in Q3 2022). Free cash
flow absorption of Industrial Activities was $127 million.
Consolidated Debt was $25 billion as of September 30, 2023 ($23
billion at December 31, 2022).
The Company has initiated an immediate
restructuring program targeting a 5% reduction in salaried
workforce cost. This will be coupled with a comprehensive
rightsizing of the Company’s cost structure to be implemented early
next year. Between the immediate reductions this year and the
additional actions next year, CNH expects a run rate reduction of
10-15% on total labor and non-labor SG&A expenses. The Company
expects to incur restructuring charges of up to $200 million.
Agriculture |
|
|
Q3 2023 |
|
Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Net sales ($ million) |
|
4,384 |
|
4,501 |
|
(3)% |
|
(4)% |
Adjusted EBIT ($ million) |
|
672 |
|
666 |
|
+6 |
|
|
Adjusted EBIT margin |
|
15.3% |
|
14.8% |
|
+50 bps |
|
|
|
|
|
|
|
|
|
|
|
In North America, industry volume was up 19%
year over year in the third quarter for tractors over 140 HP and
was down 7% for tractors under 140 HP; combines were down 4% from
prior year. In EMEA, tractor and combine demand was up 4% and down
18%, respectively. Industry volume in Europe alone was down 7% for
tractors and down 40% for combines. South America tractor demand
was down 16% and combine demand was down 47%. Asia Pacific tractor
demand was down 10% and combine demand was up 33%.
Agriculture net sales decreased for the quarter
by 2.6% to $4.38 billion primarily as a result of lower
industry volume, mainly in EMEA and South America partially offset
by favorable mix in North America and continued price
realization.
Gross profit margin was 25.6% (25.0% in Q3 2022)
up 60 bps as a result of favorable price realization in all regions
and diminishing production cost inflation.
Adjusted EBIT was $672 million
($666 million in Q3 2022), with Adjusted EBIT margin at 15.3%
(14.8% in Q3 2022). The reduced volumes due to industry headwinds
were compensated by better mix, higher gross margin, and slight
reduction in SG&A expenses, while R&D investments continued
growing and accounted for 5.5% of sales (4.3% in 2022). Income from
unconsolidated subsidiaries increased $56 million in the quarter,
primarily from our JV.
Construction |
|
|
Q3 2023 |
|
Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Net sales ($ million) |
|
948 |
|
895 |
|
+6% |
|
+4% |
Adjusted EBIT ($ million) |
|
60 |
|
24 |
|
+36 |
|
|
Adjusted EBIT margin |
|
6.3% |
|
2.7% |
|
+360 bps |
|
|
|
|
|
|
|
|
|
|
|
Global industry volume for construction
equipment was down 13% year over year in the third quarter for
Heavy construction equipment; Light construction equipment was down
3% year over year. Aggregated demand increased 2% in North America,
decreased 3% in EMEA, decreased 27% in South America and decreased
13% for Asia Pacific (excluding China, Asia Pacific markets
decreased 1%).
Construction net sales increased for the quarter
by 6% to $948 million, driven by favorable price realization
and positive volume/mix mainly in North America, partially offset
by lower net sales in other regions.
Gross profit margin was 15.9%, up 330 bps
compared to Q3 2022, mainly due to favorable product mix and price
realization.
Adjusted EBIT increased $36 million due to
favorable product mix and price realization, while SG&A and
R&D spend was flat year-over-year. Adjusted EBIT margin at 6.3%
increased by 360 bps vs the same quarter of 2022.
Financial Services |
|
|
Q3 2023 |
|
Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Revenue ($ million) |
|
653 |
|
482 |
|
+35% |
|
+33% |
Net income ($ million) |
|
86 |
|
86 |
|
— |
|
|
Equity at quarter-end ($
million) |
|
2,610 |
|
2,207 |
|
+403 |
|
|
Retail loan originations ($
million) |
|
3,043 |
|
2,478 |
|
+23% |
|
|
|
|
|
|
|
|
|
|
|
Revenues increased 35% due to favorable volumes
and higher base rates across all regions, partially offset by lower
used equipment sales due to decreased operating lease
maturities.
Net income was $86 million in the third
quarter of 2023, flat compared to the same quarter of 2022,
primarily due to favorable volumes in all regions, partially offset
by margin compression in North America and higher risk costs.
The managed portfolio (including unconsolidated
joint ventures) was $26.8 billion as of September 30, 2023 (of
which retail was 65% and wholesale was 35%), up $5.6 billion
compared to September 30, 2022 (up $4.7 billion on a constant
currency basis).
At September 30, 2023, the receivables balance
greater than 30 days past due as a percentage of receivables was
1.6% (1.3% as of September 30, 2022).
2023 Outlook
Given the softening of end market conditions, predominantly in
South America, the Company is modifying the 2023 outlook for its
Industrial Activities as follows:
- Net sales(5) up between 3% and 6% year on year
including currency translation effects
- SG&A up no more than 5% vs 2022
- Free Cash Flow of Industrial
Activities(6) between $1.0bn and
$1.2bn
- R&D expenses and capital
expenditures at around $1.6bn
Adjusted diluted EPS is targeted at about $1.70.
Results for the Nine
Months Ended September 30, 2023
(all amounts $ million, comparison vs YTD Q3 2022
- unless otherwise stated)
US-GAAP |
|
|
YTD Q3 2023 |
|
YTD Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Consolidated revenue |
|
17,895 |
|
16,608 |
|
+8% |
|
+8% |
of which Net sales of Industrial Activities |
|
16,062 |
|
15,189 |
|
+6% |
|
+6% |
Net income |
|
1,766 |
|
1,447 |
|
+22% |
|
|
Diluted EPS $ |
|
1.30 |
|
1.06 |
|
+0.24 |
|
|
Cash flow from operating
activities |
|
(608) |
|
(886) |
|
+278 |
|
|
Cash and cash
equivalents(2) |
|
2,979 |
|
4,376 |
|
(1,397) |
|
|
Gross profit margin of
Industrial Activities |
|
24.5% |
|
22.2% |
|
+230 bps |
|
|
NON-GAAP(3) |
|
|
YTD Q3 2023 |
|
YTD Q3 2022 |
|
Change |
|
Adjusted EBIT of Industrial
Activities |
|
2,034 |
|
1,753 |
|
+281 |
|
Adjusted EBIT margin of Industrial Activities |
|
12.7% |
|
11.5% |
|
+120 bps |
|
Adjusted net income |
|
1,756 |
|
1,518 |
|
+238 |
|
Adjusted diluted EPS $ |
|
1.29 |
|
1.11 |
|
+0.18 |
|
Free cash flow of Industrial
Activities |
|
(414) |
|
(453) |
|
+39 |
|
Adjusted gross margin of
Industrial Activities |
|
24.5% |
|
22.4% |
|
+210 bps |
|
Agriculture |
|
|
YTD Q3 2023 |
|
YTD Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Net sales |
|
13,201 |
|
12,600 |
|
+5% |
|
+5% |
Adjusted EBIT |
|
2,063 |
|
1,755 |
|
+308 |
|
|
Adjusted EBIT margin |
|
15.6% |
|
13.9% |
|
+170 bps |
|
|
Construction |
|
|
YTD Q3 2023 |
|
YTD Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Net sales |
|
2,861 |
|
2,589 |
|
11% |
|
+11% |
Adjusted EBIT |
|
176 |
|
90 |
|
+86 |
|
|
Adjusted EBIT margin |
|
6.2% |
|
3.5% |
|
+270 bps |
|
|
Financial Services |
|
|
YTD Q3 2023 |
|
YTD Q3 2022 |
|
Change |
|
Change at c.c.(1) |
Revenue |
|
1,805 |
|
1,419 |
|
+27% |
|
+27% |
Net income |
|
258 |
|
263 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
Notes
CNH Industrial reports quarterly and annual
consolidated financial results under U.S. GAAP and 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. EU-IFRS reports will be published on
approximately November 8, 2023.
- c.c. means at
constant currency.
- Comparison vs.
December 31, 2022
- 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: (1) North America;
(2) Europe, Middle East and Africa (“EMEA”); (3) South America and
(4) 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, Turkey, 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.
Non-GAAP Financial
Information
CNH Industrial monitors its operations through
the use of several non-GAAP financial measures. CNH Industrial’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 Industrial’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 Industrial’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 Industrial 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.
-
Adjusted Gross Profit Margin of Industrial Activities: is computed
by dividing Net sales less Cost of goods sold, as adjusted by
non-recurring items, by Net sales.
-
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 Industrial 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 Industrial 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.
Controls and Procedures
We identified a material weakness in our
internal control over financial reporting relating to IT controls
in segregation of duties and user access limits in our enterprise
resource planning (ERP) applications. This material weakness has
not resulted in any error or misstatement in our previously
published financial results. A material weakness involves a
deficiency in internal control over financial reporting that
creates a reasonable possibility that a material misstatement in
financial statements may not be prevented or detected on a timely
basis. The company is currently implementing measures to address
the underlying causes of the material weakness.
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 Industrial 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 Industrial 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 Industrial’s control. CNH Industrial
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 Industrial,
including factors that potentially could materially affect CNH
Industrial’s financial results, is included in CNH Industrial’s
reports and filings with the SEC, the Autoriteit Financiële Markten
and Commissione Nazionale per le Società e la Borsa.
All future written and oral forward-looking
statements by CNH Industrial or persons acting on the behalf of CNH
Industrial 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 express 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 2022
Annual Report and subsequent quarterly reports).
Conference Call and Webcast
Today, at 3:30 p.m. CET / 2:30 p.m. GMT / 9:30
a.m. EST, management will hold a conference call to present third
quarter 2023 results to financial analysts and institutional
investors. The call can be followed live online at
https://bit.ly/CNH_Industrial_Q3_2023 and a recording will be
available later on the Company’s website www.cnhindustrial.com. A
presentation will be made available on the CNH Industrial website
prior to the conference call.
Basildon, UK, November 7,
2023
CONTACTS
Media Inquiries – Laura Overall
Tel +44 207 925 1964 or Rebecca Fabian Tel +1 312 515 2249 (Email
mediarelations@cnhind.com)
Investor Relations – Jason
Omerza Tel +1 630 740 8079 or Federico Pavesi Tel +39 345 605 6218
(Email investor.relations@cnhind.com)
CNH INDUSTRIAL N.V.Consolidated
Statements of Operations for the three and nine
months ended September 30, 2023 and 2022(Unaudited, U.S.
GAAP)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
($ million) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenues |
|
|
|
|
|
|
|
|
Net sales |
|
5,332 |
|
5,396 |
|
16,062 |
|
15,189 |
Finance, interest and other income |
|
654 |
|
485 |
|
1,833 |
|
1,419 |
Total
Revenues |
|
5,986 |
|
5,881 |
|
17,895 |
|
16,608 |
Costs and
Expenses |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
4,059 |
|
4,156 |
|
12,133 |
|
11,819 |
Selling, general and administrative expenses |
|
462 |
|
422 |
|
1,385 |
|
1,224 |
Research and development expenses |
|
266 |
|
213 |
|
766 |
|
609 |
Restructuring expenses |
|
5 |
|
11 |
|
8 |
|
19 |
Interest expense |
|
346 |
|
190 |
|
941 |
|
490 |
Other, net |
|
186 |
|
159 |
|
536 |
|
490 |
Total Costs and
Expenses |
|
5,324 |
|
5,151 |
|
15,769 |
|
14,651 |
|
|
|
|
|
|
|
|
|
Income (loss) of Consolidated
Group before Income Taxes |
|
662 |
|
730 |
|
2,126 |
|
1,957 |
Income tax (expense)
benefit |
|
(171) |
|
(192) |
|
(536) |
|
(579) |
Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
79 |
|
21 |
|
176 |
|
69 |
Net Income
(loss) |
|
570 |
|
559 |
|
1,766 |
|
1,447 |
Net income attributable to
noncontrolling interests |
|
3 |
|
3 |
|
11 |
|
10 |
Net Income (loss)
attributable to CNH Industrial N.V. |
|
567 |
|
556 |
|
1,755 |
|
1,437 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to CNH Industrial N.V. |
|
|
|
|
|
|
|
|
Basic |
|
0.43 |
|
0.41 |
|
1.31 |
|
1.06 |
Diluted |
|
0.42 |
|
0.41 |
|
1.30 |
|
1.06 |
Weighted average
shares outstanding (in millions) |
|
|
|
|
|
|
|
|
Basic |
|
1,332 |
|
1,350 |
|
1,337 |
|
1,354 |
Diluted |
|
1,351 |
|
1,355 |
|
1,355 |
|
1,359 |
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share |
|
— |
|
— |
|
0.396 |
|
0.302 |
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, 2022 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, 2023
and December 31, 2022(Unaudited,
U.S. GAAP)
($ million) |
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
2,979 |
|
4,376 |
Restricted cash |
|
706 |
|
753 |
Financing receivables,
net |
|
22,240 |
|
19,260 |
Receivables from Iveco Group
N.V. |
|
229 |
|
298 |
Inventories, net |
|
6,447 |
|
4,811 |
Property, plant and equipment,
net and equipment under operating lease |
|
3,135 |
|
3,034 |
Intangible assets, net |
|
4,727 |
|
4,451 |
Other receivables and
assets |
|
2,578 |
|
2,398 |
Total
Assets |
|
43,041 |
|
39,381 |
Liabilities and
Equity |
|
|
|
|
Debt |
|
24,958 |
|
22,962 |
Payables to Iveco Group
N.V. |
|
76 |
|
156 |
Other payables and
liabilities |
|
9,892 |
|
9,287 |
Total
Liabilities |
|
34,926 |
|
32,405 |
Redeemable noncontrolling
interest |
|
58 |
|
49 |
Equity |
|
8,057 |
|
6,927 |
Total Liabilities and
Equity |
|
43,041 |
|
39,381 |
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, 2022 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
Statement of Cash Flows for the Nine Months Ended
September 30, 2023 and
2022(Unaudited, U.S. GAAP)
|
|
Nine Months Ended September 30, |
($ million) |
|
2023 |
|
2022 |
Cash Flows from
Operating Activities |
|
|
|
|
Net income (loss) |
|
1,766 |
|
1,447 |
Adjustments to reconcile net
income to net cash provided (used) by operating activities: |
|
|
|
|
Depreciation and amortization expense excluding assets under
operating lease |
|
276 |
|
252 |
Depreciation and amortization expense of assets under operating
lease |
|
140 |
|
155 |
(Gain) loss from disposal of assets |
|
21 |
|
22 |
Undistributed (income) loss of unconsolidated subsidiaries |
|
(125) |
|
(36) |
Other non-cash items |
|
136 |
|
130 |
Changes in operating assets
and liabilities: |
|
|
|
|
Provisions |
|
618 |
|
(21) |
Deferred income taxes |
|
(319) |
|
83 |
Trade and financing receivables related to sales, net |
|
(1,602) |
|
(1,279) |
Inventories, net |
|
(1,443) |
|
(1,121) |
Trade payables |
|
(101) |
|
(120) |
Other assets and liabilities |
|
25 |
|
(398) |
Net cash provided (used) by
operating activities |
|
(608) |
|
(886) |
Cash Flows from
Investing Activities |
|
|
|
|
Additions to retail receivables |
|
(5,689) |
|
(4,179) |
Collections of retail receivables |
|
4,308 |
|
3,342 |
Proceeds from sale of assets, net of assets sold under operating
leases |
|
1 |
|
25 |
Expenditures for property, plant and equipment and intangible
assets, net of assets under operating lease |
|
(401) |
|
(245) |
Expenditures for assets under operating lease |
|
(384) |
|
(368) |
Other |
|
123 |
|
(165) |
Net cash provided (used) by
investing activities |
|
(2,042) |
|
(1,590) |
Cash Flows from
Financing Activities |
|
|
|
|
Net increase (decrease) in debt |
|
1,962 |
|
1,334 |
Dividends paid |
|
(531) |
|
(416) |
Other |
|
(224) |
|
(116) |
Net cash provided (used) by
financing activities |
|
1,207 |
|
802 |
Effect of foreign
exchange rate changes on cash, cash equivalents and restricted
cash |
|
(1) |
|
(357) |
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
(1,444) |
|
(2,031) |
Cash, cash equivalents
and restricted cash, beginning of year |
|
5,129 |
|
5,845 |
Cash, cash equivalents
and restricted cash, end of period |
|
3,685 |
|
3,814 |
These Consolidated Statements of Cash Flow
should be read in conjunction with the Company’s Audited
Consolidated Financial Statements and Notes for the year ended
December 31, 2022 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, 2023 and
2022(Unaudited, U.S. GAAP)
|
|
Three Months Ended September 30, 2023 |
|
Three Months Ended September 30, 2022 |
($ million) |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
5,332 |
|
— |
|
— |
|
5,332 |
|
5,396 |
|
— |
|
— |
|
5,396 |
Finance, interest and other
income |
|
49 |
|
653 |
|
(48) |
(2) |
654 |
|
27 |
|
482 |
|
(24) |
(2) |
485 |
Total
Revenues |
|
5,381 |
|
653 |
|
(48) |
|
5,986 |
|
5,423 |
|
482 |
|
(24) |
|
5,881 |
Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
4,059 |
|
— |
|
— |
|
4,059 |
|
4,156 |
|
— |
|
— |
|
4,156 |
Selling, general and
administrative expenses |
|
398 |
|
64 |
|
— |
|
462 |
|
377 |
|
45 |
|
— |
|
422 |
Research and development
expenses |
|
266 |
|
— |
|
— |
|
266 |
|
213 |
|
— |
|
— |
|
213 |
Restructuring expenses |
|
5 |
|
— |
|
— |
|
5 |
|
11 |
|
— |
|
— |
|
11 |
Interest expense |
|
59 |
|
335 |
|
(48) |
(3) |
346 |
|
54 |
|
160 |
|
(24) |
(3) |
190 |
Other, net |
|
47 |
|
139 |
|
— |
|
186 |
|
(3) |
|
162 |
|
— |
|
159 |
Total Costs and
Expenses |
|
4,834 |
|
538 |
|
(48) |
|
5,324 |
|
4,808 |
|
367 |
|
(24) |
|
5,151 |
Income (loss) of Consolidated
Group before Income Taxes |
|
547 |
|
115 |
|
— |
|
662 |
|
615 |
|
115 |
|
— |
|
730 |
Income tax (expense)
benefit |
|
(137) |
|
(34) |
|
— |
|
(171) |
|
(160) |
|
(32) |
|
— |
|
(192) |
Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
74 |
|
5 |
|
— |
|
79 |
|
18 |
|
3 |
|
— |
|
21 |
Net Income
(loss) |
|
484 |
|
86 |
|
— |
|
570 |
|
473 |
|
86 |
|
— |
|
559 |
(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,
2023 and 2022(Unaudited,
U.S. GAAP)
|
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
($ million) |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
16,062 |
|
— |
|
— |
|
16,062 |
|
15,189 |
|
— |
|
— |
|
15,189 |
Finance, interest and other
income |
|
153 |
|
1,805 |
|
(125) |
(2) |
1,833 |
|
52 |
|
1,419 |
|
(52) |
(2) |
1,419 |
Total
Revenues |
|
16,215 |
|
1,805 |
|
(125) |
|
17,895 |
|
15,241 |
|
1,419 |
|
(52) |
|
16,608 |
Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
12,133 |
|
— |
|
— |
|
12,133 |
|
11,819 |
|
— |
|
— |
|
11,819 |
Selling, general and
administrative expenses |
|
1,219 |
|
166 |
|
— |
|
1,385 |
|
1,087 |
|
137 |
|
— |
|
1,224 |
Research and development
expenses |
|
766 |
|
— |
|
— |
|
766 |
|
609 |
|
— |
|
— |
|
609 |
Restructuring expenses |
|
8 |
|
— |
|
— |
|
8 |
|
19 |
|
— |
|
— |
|
19 |
Interest expense |
|
189 |
|
877 |
|
(125) |
(3) |
941 |
|
149 |
|
393 |
|
(52) |
(3) |
490 |
Other, net |
|
109 |
|
427 |
|
— |
|
536 |
|
(41) |
|
531 |
|
— |
|
490 |
Total Costs and
Expenses |
|
14,424 |
|
1,470 |
|
(125) |
|
15,769 |
|
13,642 |
|
1,061 |
|
(52) |
|
14,651 |
Income (loss) of Consolidated
Group before Income Taxes |
|
1,791 |
|
335 |
|
— |
|
2,126 |
|
1,599 |
|
358 |
|
— |
|
1,957 |
Income tax (expense)
benefit |
|
(447) |
|
(89) |
|
— |
|
(536) |
|
(473) |
|
(106) |
|
— |
|
(579) |
Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
164 |
|
12 |
|
— |
|
176 |
|
58 |
|
11 |
|
— |
|
69 |
Net Income
(loss) |
|
1,508 |
|
258 |
|
— |
|
1,766 |
|
1,184 |
|
263 |
|
— |
|
1,447 |
(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, 2023
and December 31, 2022(Unaudited,
U.S. GAAP)
|
|
September 30, 2023 |
|
December 31, 2022 |
($ million) |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2,458 |
|
521 |
|
— |
|
2,979 |
|
3,802 |
|
574 |
|
— |
|
4,376 |
Restricted cash |
|
150 |
|
556 |
|
— |
|
706 |
|
158 |
|
595 |
|
— |
|
753 |
Financing receivables,
net |
|
1,017 |
|
22,735 |
|
(1,512) |
(2) |
22,240 |
|
898 |
|
19,313 |
|
(951) |
(2) |
19,260 |
Receivables from Iveco Group
N.V. |
|
163 |
|
66 |
|
— |
|
229 |
|
234 |
|
64 |
|
— |
|
298 |
Inventories, net |
|
6,428 |
|
19 |
|
— |
|
6,447 |
|
4,798 |
|
13 |
|
— |
|
4,811 |
Property, plant and equipment,
net and equipment on operating lease |
|
1,720 |
|
1,415 |
|
— |
|
3,135 |
|
1,561 |
|
1,473 |
|
— |
|
3,034 |
Intangible assets, net |
|
4,563 |
|
164 |
|
— |
|
4,727 |
|
4,287 |
|
164 |
|
— |
|
4,451 |
Other receivables and
assets |
|
2,331 |
|
494 |
|
(247) |
(3) |
2,578 |
|
2,141 |
|
477 |
|
(220) |
(3) |
2,398 |
Total
Assets |
|
18,830 |
|
25,970 |
|
(1,759) |
|
43,041 |
|
17,879 |
|
22,673 |
|
(1,171) |
|
39,381 |
Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt |
|
4,622 |
|
21,848 |
|
(1,512) |
(2) |
24,958 |
|
4,972 |
|
18,941 |
|
(951) |
(2) |
22,962 |
Payables to Iveco Group
N.V. |
|
4 |
|
72 |
|
— |
|
76 |
|
5 |
|
151 |
|
— |
|
156 |
Other payables and
liabilities |
|
8,699 |
|
1,440 |
|
(247) |
(3) |
9,892 |
|
8,211 |
|
1,296 |
|
(220) |
(3) |
9,287 |
Total Liabilities |
|
13,325 |
|
23,360 |
|
(1,759) |
|
34,926 |
|
13,188 |
|
20,388 |
|
(1,171) |
|
32,405 |
Redeemable noncontrolling
interest |
|
58 |
|
— |
|
— |
|
58 |
|
49 |
|
— |
|
— |
|
49 |
Equity |
|
5,447 |
|
2,610 |
|
— |
|
8,057 |
|
4,642 |
|
2,285 |
|
— |
|
6,927 |
Total Liabilities and
Equity |
|
18,830 |
|
25,970 |
|
(1,759) |
|
43,041 |
|
17,879 |
|
22,673 |
|
(1,171) |
|
39,381 |
(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.
Supplemental Statements of Cash Flows for the
Nine Months Ended September 30, 2023
and 2022 (Unaudited, U.S.
GAAP)
|
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
($ million) |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
Cash Flows from
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
1,508 |
|
258 |
|
— |
|
1,766 |
|
1,184 |
|
263 |
|
— |
|
1,447 |
Adjustments to reconcile net
income to net cash provided (used) by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense excluding assets under
operating lease |
|
273 |
|
3 |
|
— |
|
276 |
|
250 |
|
2 |
|
— |
|
252 |
Depreciation and amortization
expense of assets under operating lease |
|
6 |
|
134 |
|
— |
|
140 |
|
2 |
|
153 |
|
— |
|
155 |
(Gain) loss from disposal of
assets, net |
|
21 |
|
— |
|
— |
|
21 |
|
22 |
|
— |
|
— |
|
22 |
Undistributed (income) loss of
unconsolidated subsidiaries |
|
(109) |
|
(12) |
|
(4) |
(2) |
(125) |
|
90 |
|
(11) |
|
(115) |
(2) |
(36) |
Other non-cash items, net |
|
73 |
|
63 |
|
— |
|
136 |
|
87 |
|
43 |
|
— |
|
130 |
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions |
|
617 |
|
1 |
|
— |
|
618 |
|
(21) |
|
— |
|
— |
|
(21) |
Deferred income taxes |
|
(271) |
|
(48) |
|
— |
|
(319) |
|
130 |
|
(47) |
|
— |
|
83 |
Trade and financing
receivables related to sales, net |
|
(25) |
|
(1,582) |
|
5 |
(3) |
(1,602) |
|
73 |
|
(1,352) |
|
— |
|
(1,279) |
Inventories, net |
|
(1,722) |
|
279 |
|
— |
|
(1,443) |
|
(1,498) |
|
377 |
|
— |
|
(1,121) |
Trade payables |
|
(56) |
|
(40) |
|
(5) |
(3) |
(101) |
|
(71) |
|
(57) |
|
8 |
(3) |
(120) |
Other assets and
liabilities |
|
(174) |
|
199 |
|
— |
|
25 |
|
(430) |
|
40 |
|
(8) |
(3) |
(398) |
Net cash provided (used) by
operating activities |
|
141 |
|
(745) |
|
(4) |
|
(608) |
|
(182) |
|
(589) |
|
(115) |
|
(886) |
Cash Flows from
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to retail
receivables |
|
— |
|
(5,689) |
|
— |
|
(5,689) |
|
— |
|
(4,179) |
|
— |
|
(4,179) |
Collections of retail
receivables |
|
— |
|
4,308 |
|
— |
|
4,308 |
|
— |
|
3,342 |
|
— |
|
3,342 |
Proceeds from sale of assets
excluding assets sold under operating leases |
|
1 |
|
— |
|
— |
|
1 |
|
25 |
|
— |
|
— |
|
25 |
Expenditures for property,
plant and equipment and intangible assets excluding assets under
operating lease |
|
(397) |
|
(4) |
|
— |
|
(401) |
|
(243) |
|
(2) |
|
— |
|
(245) |
Expenditures for assets under
operating lease |
|
(26) |
|
(358) |
|
— |
|
(384) |
|
(14) |
|
(354) |
|
|
|
(368) |
Other |
|
460 |
|
(441) |
|
104 |
|
123 |
|
(424) |
|
238 |
|
21 |
|
(165) |
Net cash provided (used) by
investing activities |
|
38 |
|
(2,184) |
|
104 |
|
(2,042) |
|
(656) |
|
(955) |
|
21 |
|
(1,590) |
Cash Flows from
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
debt |
|
(777) |
|
2,739 |
|
— |
|
1,962 |
|
61 |
|
1,273 |
|
— |
|
1,334 |
Dividends paid |
|
(531) |
|
(4) |
|
4 |
(2) |
(531) |
|
(416) |
|
(115) |
|
115 |
(2) |
(416) |
Other |
|
(224) |
|
104 |
|
(104) |
|
(224) |
|
(116) |
|
21 |
|
(21) |
|
(116) |
Net cash provided (used) by
financing activities |
|
(1,532) |
|
2,839 |
|
(100) |
|
1,207 |
|
(471) |
|
1,179 |
|
94 |
|
802 |
Effect of foreign
exchange rate changes on cash, cash equivalents and restricted
cash |
|
1 |
|
(2) |
|
— |
|
(1) |
|
(338) |
|
(19) |
|
— |
|
(357) |
Net increase
(decrease) in cash and cash equivalents |
|
(1,352) |
|
(92) |
|
— |
|
(1,444) |
|
(1,647) |
|
(384) |
|
— |
|
(2,031) |
Cash and cash
equivalents, beginning of year |
|
3,960 |
|
1,169 |
|
— |
|
5,129 |
|
4,514 |
|
1,331 |
|
— |
|
5,845 |
Cash and cash
equivalents, end of period |
|
2,608 |
|
1,077 |
|
— |
|
3,685 |
|
2,867 |
|
947 |
|
— |
|
3,814 |
(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
used in 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 EndedSeptember
30, |
|
Nine Months Ended September 30, |
($ million) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Industrial Activities
segments |
|
|
|
|
|
|
|
|
Agriculture |
|
672 |
|
666 |
|
2,063 |
|
1,755 |
Construction |
|
60 |
|
24 |
|
176 |
|
90 |
Unallocated items,
eliminations and other |
|
(75) |
|
(20) |
|
(205) |
|
(92) |
Total Adjusted EBIT of
Industrial Activities |
|
657 |
|
670 |
|
2,034 |
|
1,753 |
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) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net
Income |
|
570 |
|
559 |
|
1,766 |
|
1,447 |
Less: Consolidated income tax
expense |
|
(171) |
|
(192) |
|
(536) |
|
(579) |
Consolidated income
before taxes |
|
741 |
|
751 |
|
2,302 |
|
2,026 |
Less: Financial Services |
|
|
|
|
|
|
|
|
Financial Services Net Income |
|
86 |
|
86 |
|
258 |
|
263 |
Financial Services Income Taxes |
|
34 |
|
32 |
|
89 |
|
106 |
Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
Interest expense of Industrial Activities, net of Interest income
and eliminations |
|
10 |
|
27 |
|
36 |
|
97 |
Foreign exchange (gains) losses, net of Industrial Activities |
|
21 |
|
14 |
|
27 |
|
14 |
Finance and non-service component of Pension and other
post-employment benefit costs of Industrial Activities (1) |
|
— |
|
(35) |
|
(2) |
|
(112) |
Adjustments for the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
Restructuring expenses |
|
5 |
|
11 |
|
8 |
|
19 |
Other discrete items(2) |
|
— |
|
20 |
|
10 |
|
78 |
Total Adjusted EBIT of
Industrial Activities |
|
657 |
|
670 |
|
2,034 |
|
1,753 |
(1) In the three and nine months ended September
30, 2023 and 2022, this item includes the pre-tax gain of $6
million and $18 million as a result of the amortization over the 4
years of the $101 million positive impact from the 2021
modifications of a healthcare plan in the U.S. In the three and
nine months ended September 30, 2022, this item includes the
pre-tax gain of $30 million and $90 million as a result of the 2018
modification of a healthcare plan in the U.S.
(2) In the three months ended September 30,
2023, this item did not include any discrete items, while the three
months ended September 30, 2022 included $14 million of costs
related to the Raven segments held for sale and $7 million of spin
off costs related to the Iveco Group business. The nine months
ended September 30, 2023 included a loss of $23 million on the sale
of the 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. The nine months ended
September 30, 2022 included $43 million of asset write-downs
related to the Industrial Activities of our Russian Operations, $22
million of costs related to the Raven segments held for sale, and
$13 million of spin off costs related to the Iveco Group
business.
Other Supplemental Financial Information
(Unaudited)
Reconciliation of Total (Debt) to Net Cash (Debt) under
U.S. GAAP |
|
|
Consolidated |
|
Industrial Activities |
|
Financial Services |
($ million) |
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2023 |
|
December 31, 2022 |
Third party (debt) |
|
(24,958) |
|
(22,962) |
|
(4,117) |
|
(4,909) |
|
(20,841) |
|
(18,053) |
Intersegment notes
payable |
|
— |
|
— |
|
(505) |
|
(63) |
|
(1,007) |
|
(888) |
Payable to Iveco Group
N.V.(4) |
|
(76) |
|
(156) |
|
(4) |
|
(5) |
|
(72) |
|
(151) |
Total
(Debt)(1) |
|
(25,034) |
|
(23,118) |
|
(4,626) |
|
(4,977) |
|
(21,920) |
|
(19,092) |
Cash and cash equivalents |
|
2,979 |
|
4,376 |
|
2,458 |
|
3,802 |
|
521 |
|
574 |
Restricted cash |
|
706 |
|
753 |
|
150 |
|
158 |
|
556 |
|
595 |
Intersegment notes
receivable |
|
— |
|
— |
|
1,007 |
|
888 |
|
505 |
|
63 |
Receivables from Iveco Group
N.V.(4) |
|
229 |
|
298 |
|
163 |
|
234 |
|
66 |
|
64 |
Other current financial
assets(2) |
|
— |
|
300 |
|
— |
|
300 |
|
— |
|
— |
Derivatives hedging debt |
|
(41) |
|
(43) |
|
(41) |
|
(43) |
|
— |
|
— |
Net Cash
(Debt)(3) |
|
(21,161) |
|
(17,434) |
|
(889) |
|
362 |
|
(20,272) |
|
(17,796) |
(1) Total (Debt) of Industrial Activities
includes Intersegment notes payable to Financial Services of
$505 million and $63 million as of September 30,
2023 and December 31, 2022, respectively. Total (Debt) of
Financial Services includes Intersegment notes payable to
Industrial Activities of $(1,007) million and
$(888) million as of September 30, 2023 and
December 31, 2022, respectively(2) This item includes
short-term deposits and investments towards high-credit rating
counterparties.(3) The net intersegment receivable/(payable)
balance recorded by Financial Services relating to Industrial
Activities was $(502) million and $(825) million as of
September 30, 2023 and December 31, 2022,
respectively.
Reconciliation of Net Cash Provided (Used) by Operating
Activities to Free Cash Flow of Industrial Activities under U.S.
GAAP |
Nine Months Ended September 30, |
|
|
|
Three Months Ended September 30, |
2023 |
|
2022 |
|
($ million) |
|
2023 |
|
2022 |
(608) |
|
(886) |
|
Net cash provided (used) by Operating
Activities |
|
232 |
|
272 |
749 |
|
704 |
|
Cash flows from Operating
Activities of Financial Services, net of eliminations |
|
(141) |
|
27 |
2 |
|
17 |
|
Change in derivatives hedging
debt of Industrial Activities and other |
|
(2) |
|
46 |
(26) |
|
(14) |
|
Investments in assets sold
under operating lease assets of Industrial Activities |
|
(17) |
|
(8) |
(397) |
|
(243) |
|
Investments in property, plant
and equipment, and intangible assets of Industrial Activities |
|
(176) |
|
(106) |
(134) |
|
(31) |
|
Other changes(1) |
|
(23) |
|
(29) |
(414) |
|
(453) |
|
Free cash flow of
Industrial Activities |
|
(127) |
|
202 |
(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, |
2023 |
|
2022 |
|
($ million) |
|
2023 |
|
2022 |
1,766 |
|
1,447 |
|
Net income (loss) |
|
570 |
|
559 |
— |
|
5 |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(1) |
|
(4) |
(10) |
|
66 |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
1 |
|
2 |
1,756 |
|
1,518 |
|
Adjusted net income
(loss) |
|
570 |
|
557 |
1,745 |
|
1,508 |
|
Adjusted net income (loss)
attributable to CNH Industrial N.V. |
|
567 |
|
554 |
1,355 |
|
1,359 |
|
Weighted average shares
outstanding – diluted (million) |
|
1,351 |
|
1,355 |
1.29 |
|
1.11 |
|
Adjusted diluted EPS
($) |
|
0.42 |
|
0.41 |
|
|
|
|
|
|
|
|
|
2,126 |
|
1,957 |
|
Income (loss) of
Consolidated Group before income tax (expense)
benefit |
|
662 |
|
730 |
— |
|
5 |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(1) |
|
(4) |
2,126 |
|
1,962 |
|
Adjusted income (loss)
before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (A) |
|
661 |
|
726 |
|
|
|
|
|
|
|
|
|
(536) |
|
(579) |
|
Income tax (expense)
benefit |
|
(171) |
|
(192) |
(10) |
|
66 |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
1 |
|
2 |
(546) |
|
(513) |
|
Adjusted income tax
(expense) benefit (B) |
|
(170) |
|
(190) |
|
|
|
|
|
|
|
|
|
25.7% |
|
26.1% |
|
Adjusted Effective Tax
Rate (Adjusted ETR) (C=B/A) |
|
25.7% |
|
26.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Adjustments
impacting Income (loss) before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and
affiliates |
|
|
|
|
8 |
|
19 |
|
Restructuring expenses |
|
5 |
|
11 |
— |
|
(90) |
|
Pre-tax gain related to the
2018 modification of a healthcare plan in the U.S. |
|
— |
|
(30) |
(18) |
|
(18) |
|
Pre-tax gain related to the
2021 modification of a healthcare plan in the U.S. |
|
(6) |
|
(6) |
— |
|
43 |
|
Asset write-down: Industrial
Activities, Russia Operations |
|
— |
|
(1) |
— |
|
16 |
|
Asset write-down: Financial
Services, Russia Operations |
|
— |
|
1 |
17 |
|
— |
|
Loss on sale of Industrial
Activities, Russia Operations |
|
— |
|
— |
6 |
|
— |
|
Loss on sale of Financial
Services, Russia Operations |
|
— |
|
— |
— |
|
13 |
|
Spin related costs |
|
— |
|
7 |
(13) |
|
— |
|
Investment fair value
adjustments |
|
— |
|
— |
— |
|
22 |
|
Activity of the Raven Segments
held for sale, including loss on sale of the Aerostar and
Engineered Films Division |
|
— |
|
14 |
— |
|
5 |
|
Total |
|
(1) |
|
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
b) Adjustments
impacting Income tax (expense) benefit |
|
|
|
|
(10) |
|
66 |
|
Tax effect of adjustments
impacting Income (loss) before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and affiliates |
|
1 |
|
5 |
— |
|
— |
|
Adjustment to valuation
allowances on deferred tax assets |
|
— |
|
(3) |
(10) |
|
66 |
|
Total |
|
1 |
|
2 |
Other Supplemental Financial
Information(Unaudited)
Reconciliation of Adjusted Gross Profit to Gross Profit
under U.S. GAAP |
Nine Months Ended September 30, |
|
|
|
Three Months Ended September 30, |
2023 |
|
2022 |
|
($ million) |
|
2023 |
|
2022 |
16,062 |
|
15,189 |
|
Net Sales (A) |
|
5,332 |
|
5,396 |
12,133 |
|
11,819 |
|
Cost of goods sold |
|
4,059 |
|
4,156 |
3,929 |
|
3,370 |
|
Gross profit (B) |
|
1,273 |
|
1,240 |
— |
|
34 |
|
Asset write down (Russia
operations) |
|
— |
|
— |
3,929 |
|
3,404 |
|
Adjusted gross profit (C) |
|
1,273 |
|
1,240 |
|
|
|
|
|
|
|
|
|
24.5% |
|
22.2% |
|
Gross profit margin (B ÷
A) |
|
23.9% |
|
23.0% |
24.5% |
|
22.4% |
|
Adjusted gross profit margin
(C ÷ A) |
|
23.9% |
|
23.0% |
- 20231107_PR_CNH_Industrial_Q3_Results_2023
CNH Industrial NV (BIT:CNHI)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
CNH Industrial NV (BIT:CNHI)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024