CNH Industrial reports continued strength in its third quarter
performance
Consolidated revenues of $5,881 million
(up 23.9% compared to Q3 2021 for continuing operations, up 29% at
constant currency)
Net income of $559 million, Adjusted Net
Income of $557 million, with diluted EPS and adjusted diluted EPS
of $0.41
Adjusted EBIT of Industrial Activities
of $670 million (up $250 million compared to Q3 2021)
Net cash provided by operating
activities of $272 million and Industrial Free Cash Flow of $202
million
Net sales for Industrial Activities
expected up 16% to 18% for the full year, despite foreign exchange
rates headwinds
CNH Industrial will now voluntarily file
annual and quarterly reports on Forms 10-K and 10-Q, as used by US
domestic filers
Financial results presented under U.S. GAAP
“The CNH Industrial team delivered another
strong quarter, driving record 3rd Quarter consolidated revenues,
up nearly 24% over the previous year. A mixture of favorable
volume, price realization, outstanding operational execution and
supportive product mix permitted us to increase our Industrial
Activities Gross and EBIT margins by 260 and 270 basis points
respectively, with Agriculture generating a record EBIT margin of
14.8%. While our solid results reflect some sequential improvement
in the global supply chain, significant challenges persist, and
inflation continues to run hot. Free Cash Flow of Industrial
Activities was positive for the quarter, and we continue to target
over $1 billion for the full year as we accelerate completion and
shipment of inventory in Q4. Order books remain robust as soft
commodity prices continue to support global agriculture and many
construction end markets sustain their strength. We look forward to
sharing our future precision, automation/autonomy, and alternative
fuel technologies at our Tech Day in December. With this solid
foundation and improving execution we have elevated our full year
guidance. The coming quarters will challenge our team, but they
have consistently proven their mettle and I remain confident we
will continue to support our customers, deliver for our
shareholders, and progress our strategic initiatives regardless of
the business climate.”
Scott W. Wine, Chief
Executive Officer
2022 Third Quarter Results
(all amounts $ million, comparison vs Q3 2021
continuing operations - unless otherwise stated)
|
US-GAAP |
| |
|
Q3 2022 |
|
PY(1) |
|
Change |
Change at c.c.(3) |
| Consolidated
revenue |
|
5,881 |
|
4,746 |
|
+23.9% |
+29% |
|
of which Net sales of Industrial Activities |
|
5,396 |
|
4,336 |
|
+24.4% |
+30% |
| Net income |
|
559 |
|
460 |
|
+99 |
|
| Diluted EPS
$ |
|
0.41 |
|
0.34 |
|
+0.07 |
|
| Cash flow from
operating activities |
|
272 |
|
673 |
|
(401) |
|
| Cash and cash
equivalents(6) |
|
3,154 |
|
2,855 |
|
299 |
|
| Gross profit
margin of Industrial Activities |
|
23.0% |
|
20.4% |
|
+260 bps |
|
| |
|
|
|
|
|
|
|
|
NON-GAAP(2) |
| |
|
Q3 2022 |
|
PY(1) |
|
Change |
|
| Adjusted EBIT of
Industrial Activities |
|
670 |
|
420 |
|
+250 |
|
| Adjusted EBIT
Margin of Industrial Activities |
|
12.4% |
|
9.7% |
|
+270 bps |
|
| Adjusted net
income |
|
557 |
|
463 |
|
+94 |
|
| Adjusted diluted
EPS $ |
|
0.41 |
|
0.34 |
|
+0.07 |
|
| Free Cash flow
of Industrial Activities |
|
202 |
|
(70) |
|
+272 |
|
| Available
liquidity(6) |
|
8,645 |
|
8,795 |
|
(150) |
|
Net sales of Industrial
Activities of $5,396 million, up 24.4%
mainly due to favorable price realization, despite more than 5%
adverse currency conversion impacts.
Adjusted EBIT of Industrial
Activities of $670 million ($420 million
in Q3 2021), with both segments up year over year. Agriculture
adjusted EBIT margin at record 14.8% and Construction at 2.7%.
Net income of $559 million,
with diluted earnings per share of $0.41 (net
income of $460 million in Q3 2021, with diluted earnings per share
of $0.34). Adjusted net income of $557
million, with adjusted diluted earnings per
share of $0.41 (adjusted net income of
$463 million in Q3 2021, with adjusted diluted earnings per share
of $0.34).
Gross profit margin of Industrial
Activities of 23.0%, (20.4% in Q3 2021) with improvement
in Agriculture and Construction despite continued cost
pressures.
Reported income tax expense of
$192 million and adjusted income tax expense(1) of $190 million,
with adjusted effective tax rate (adjusted ETR(1))
of 26.2% affected by the jurisdictional mix of
pre-tax profits.
Free cash flow of Industrial
Activities was $202 million.
Manufacturing inventories remain at high levels, although reduced
from June 2022, amid supply chain constraints, and finished goods
inventories continue being lean relative to sales. Total Debt of
$20.9 billion at September 30, 2022 ($20.9 billion at December 31,
2021).
Industrial Activities Net
Debt(1) position at
$1.3 billion, an increase of $146 million from
December 31, 2021, and Available liquidity at
$8,645 million as of September 30, 2022. The Company completed a
€100 million share buyback program with 5.3 million common shares
purchased during the third quarter. Additionally, 1.4 million
common shares were purchased during the third quarter under the
first $50 million tranche of the $300 million common share buyback
program approved on July 29, 2022.
Beginning with the reporting of third quarter
2022 financial results, the Company intends to voluntarily report
its financial results under the periodic reporting forms for U.S.
domestic filers (i.e., CNH Industrial will now voluntarily file
annual and quarterly reports on Forms 10-K and 10-Q). Management
determined that following the spin-off of the Iveco Group and the
refocus as an agricultural and construction equipment leader with
significant presence in the US, reporting according to the
standards for US public companies is more consistent with the
Company’s operating profile and its investor base.
|
Agriculture |
|
|
|
Q3 2022 |
|
Q3 2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Net sales ($ million) |
|
4,501 |
|
3,563 |
|
+26% |
|
+32% |
| Adjusted EBIT ($ million) |
|
666 |
|
415 |
|
+251 |
|
|
| Adjusted EBIT margin |
|
14.8% |
|
11.6% |
|
+320 bps |
|
|
In North America, industry volume was up 9% year
over year for the third quarter for tractors over 140 HP and was
down 16% for tractors under 140 HP; combines were up 13%. In
Europe, Middle East and Africa (EMEA), tractor and combine demand
was down 5% and 30%, respectively; combine demand in Europe alone
was up 12%. South America tractor demand was up 12% and combine
demand was up 20%. Asia Pacific tractor demand was up 8% and
combine demand was up 12%.
Net sales were up 26%, due to favorable price
realization and better mix, mostly driven by North America and
South America, partially offset by the negative impact of foreign
exchange rates.
Gross profit margin was at
record 25.0%, with Gross Profit $340 million higher than in Q3
2021, mainly due to better mix and favorable price realization
primarily in North America, South America and Asia Pacific regions,
partially offset by higher production and raw material costs across
all regions.
Adjusted EBIT was $666 million
($415 million for Q3 2021), with Adjusted EBIT margin at 14.8%. The
$251 million increase was driven by favorable price realization and
better mix, partially offset by higher SG&A costs, higher
production and raw material costs, and increased R&D spend.
Order book in Agriculture was
down less than 10% year over year for tractors. Order book for
combines was down 21%, with declines in North America and South
America offset partially by growth in EMEA. At above 2.5 times the
pre-pandemic levels, order books remain strong in all regions and
key products and orders are being kept curtailed as the medium-term
cost scenario remains unclear.
|
Construction |
|
|
|
Q3 2022 |
|
Q3 2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Net sales ($ million) |
|
895 |
|
773 |
|
+16% |
|
+20% |
| Adjusted EBIT ($ million) |
|
24 |
|
21 |
|
+3 |
|
|
| Adjusted EBIT margin |
|
2.7% |
|
2.7% |
|
- |
|
|
Global industry volume for construction
equipment decreased in both Heavy and Light sub-segments year over
year in the third quarter, with Heavy down 3% and Light down 4%,
mostly driven by a 9% decrease in Light and Heavy equipment demand
for Asia Pacific, particularly in China. Aggregated demand
increased 1% in North America, decreased 5% in EMEA and increased
21% in South America.
Net sales were up 16%, driven
by favorable price realization and contribution from the Sampierana
business acquired in December 2021.
Gross profit margin was 12.6%,
up 0.4 p.p. compared to Q3 2021, mainly due to higher volumes in
North America and favorable price realization, partially offset by
higher freight and raw material costs.
Adjusted EBIT increased $3
million due to favorable volume and mix and positive price
realization, partially offset by higher production, freight and raw
material costs and increased SG&A spend. Adjusted EBIT margin
at 2.7%.
Construction order book up more
than 20% year over year in both Heavy and Light sub-segments, with
increases in the North America, EMEA and South America regions.
|
Financial Services |
|
|
|
Q3 2022 |
|
Q3 2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Revenue ($ million) |
|
482 |
|
405 |
|
+19% |
|
+21% |
| Net income ($ million) |
|
86 |
|
96 |
|
(10) |
|
|
| Equity at quarter-end ($
million) |
|
2,207 |
|
2,157 |
|
+50 |
|
|
| Retail loan originations ($
million) |
|
2,478 |
|
2,357 |
|
+5.1% |
|
|
Revenues were up 19% due to
favorable volumes in all regions, higher base rates across all
regions, mainly in South America, and higher used equipment sales,
partially offset by changes in North America product mix.
Net income decreased $10
million to $86 million, primarily due to margin compression in
North America, increased SG&A costs, specifically labor costs,
and normalized risk costs, partially offset by favorable volumes in
all regions and higher recoveries on used equipment sales.
The managed portfolio
(including unconsolidated joint ventures) was $21.2 billion as of
September 30, 2022 (of which retail was 70% and wholesale was 30%),
up $1.2 billion compared to September 30, 2021 (up $2.4 billion on
a constant currency basis).
The receivable balance greater than 30 days past
due as a percentage of receivables was 1.3% (1.4% as of
September 30, 2021).
2022 Outlook
The Company is updating the 2022 outlook for its
Industrial Activities:
- Net
sales(5) up between 16%
and 18% year on year including currency translation effects
- SG&A
expenses lower than 7.5% of net sales
- Free Cash
Flow of Industrial Activities(8) in excess of $1.0
billion
- R&D
expenses and capital expenditures at
around $1.4 billion
Significant uncertainties remain, including rising inflation,
geopolitical instability, the war in Ukraine, and may affect our
forecast for the year.
RESULTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2022
Consolidated revenues of $16,608 million
(up 18.5% year on year, up 22% at constant currency), net income of
$1,447 million, with adjusted diluted EPS of $1.11, adjusted EBIT
of Industrial Activities of $1,753 million, and Industrial Free
Cash Flow absorption of $(453) million (Industrial
Activities).
Results for the Nine Months Ended
September 30, 2022
(all amounts $ million, comparison vs Q3 2021
continuing operations - unless otherwise stated)
|
US-GAAP |
|
|
|
YTD Q3 2022 |
|
PY(1) |
|
Change |
Change at
c.c.(3) |
| Consolidated revenue |
|
16,608 |
|
14,016 |
|
+18.5% |
+22% |
| of which Net sales of
Industrial Activities |
|
15,189 |
|
12,808 |
|
+18.6% |
+22% |
| Net income |
|
1,447 |
|
1,337 |
|
+110 |
|
| Diluted EPS $ |
|
1.06 |
|
0.98 |
|
+0.08 |
|
| Cash flow from operating
activities |
|
(886) |
|
1,474 |
|
(2,360) |
|
| Cash and cash
equivalents(7) |
|
3,154 |
|
5,044 |
|
(1,890) |
|
| Gross profit margin of
Industrial Activities |
|
22.2% |
|
21.4% |
|
+80bps |
|
|
NON-GAAP(2) |
|
|
|
YTD Q3 2022 |
|
PY(1) |
|
Change |
|
| Adjusted EBIT of Industrial
Activities |
|
1,753 |
|
1,385 |
|
+368 |
|
| Adjusted EBIT Margin of
Industrial Activities |
|
11.5% |
|
10.8% |
|
+70bps |
|
| Adjusted net income |
|
1,518 |
|
1,322 |
|
+196 |
|
| Adjusted diluted EPS $ |
|
1.11 |
|
0.97 |
|
+0.14 |
|
| Free Cash flow of Industrial
Activities |
|
(453) |
|
703 |
|
(1,156) |
|
| Available liquidity(7) |
|
8,645 |
|
10,521 |
|
(1,876) |
|
| Adjusted gross margin of
Industrial Activities |
|
22.4% |
|
21.4% |
|
+100bps |
|
|
Agriculture |
| |
|
YTD Q3 2022 |
|
YTD Q3 2021(1) |
|
Change |
|
Change at c.c.(3) |
| Net sales ($
million) |
|
12,600 |
|
10,571 |
|
+19% |
|
+23% |
| Adjusted EBIT ($
million) |
|
1,755 |
|
1,396 |
|
+359 |
|
|
| Adjusted EBIT
margin |
|
13.9% |
|
13.2% |
|
+70bps |
|
|
|
Construction |
| |
|
YTD Q3 2022 |
|
YTD Q3 2021(1) |
|
Change |
|
Change at c.c.(3) |
| Net sales ($
million) |
|
2,589 |
|
2,237 |
|
+16% |
|
+18% |
| Adjusted EBIT ($
million) |
|
90 |
|
70 |
|
+20 |
|
|
| Adjusted EBIT
margin |
|
3.5% |
|
3.1% |
|
40bps |
|
|
|
Financial Services |
| |
|
YTD Q3 2022 |
|
YTD Q3 2021(1) |
|
Change |
|
Change at c.c.(3) |
| Revenues ($
million) |
|
1,419 |
|
1,194 |
|
+19% |
|
+19% |
| Net income ($
million) |
|
263 |
|
259 |
|
+4 |
|
|
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. Financial results under EU-IFRS are
shown in specific tables at the end of this press release.
-
Effective January 1, 2022, the Iveco Group business was separated
from CNH Industrial N.V. by way of a demerger under Dutch law to
Iveco Group N.V. and Iveco Group became a public listed company
independent from CNH Industrial. Accordingly, that business is
presented as discontinued operations beginning in the first quarter
of 2022. The Company has reclassified the financial results of
Iveco Group to Net income (loss) from discontinued operations in
the Condensed Consolidated Statements of Operations for all periods
presented. The Company has reclassified the related assets and
liabilities as Assets held for distribution and Liabilities held
for distribution on the Condensed Consolidated Balance Sheets as of
December 31, 2021. Cash flows from the Company’s discontinued
operations are presented in the Condensed Consolidated Statements
of Cash Flows for all periods. All comparative figures shown
exclude the results of the discontinued operations.
-
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.
-
c.c. means at constant currency.
-
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; (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, Balkans, Russia, Turkey, the African continent, and the
Middle East;
-
South America: Central and South America, and the Caribbean
Islands; and
-
Asia Pacific: Continental Asia (including the Indian subcontinent)
and Oceania.
-
Net sales reflecting the exchange rate of 1.05 EUR/USD
-
Comparison vs. June 30, 2022
-
Comparison vs. December 31, 2021
-
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 or EU-IFRS 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 and/or EU-IFRS.
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 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 of
Industrial Activities under EU-IFRS: is defined as profit/(loss)
before taxes, Financial Services’ results, Industrial Activities’
financial expenses, restructuring costs, and certain non-recurring
items.
- 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 a 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.
- Available
Liquidity: is defined as cash and cash equivalents plus restricted
cash, undrawn medium-term unsecured committed facilities, net
receivables/payables with Iveco Group N.V. and other current
financial assets (primarily current securities, short-term deposits
and investments in instruments of high-credit rating
counterparties).
-
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.
Forward-looking statements
All statements other than statements of
historical fact contained in this earning 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, including those
related to the COVID-19 pandemic, 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: the continued
uncertainties related to the unknown duration and economic,
operational and financial impacts of the global COVID-19 pandemic
and the actions taken or contemplated by governmental authorities
or others in connection with the pandemic on our business, our
employees, customers and suppliers; supply chain disruptions,
including delays caused by mandated shutdowns, industry capacity
constraints, material availability, and global logistics delays and
constraints; disruption caused by business responses to COVID-19,
including remote working arrangements, which may create increased
vulnerability to cybersecurity or data privacy incidents; our
ability to execute business continuity plans as a result of
COVID-19; the many interrelated factors that affect consumer
confidence and worldwide demand for capital goods and capital
goods-related products, including demand uncertainty caused by
COVID-19; general economic conditions in each of our markets,
including the significant economic uncertainty and volatility
caused by the war in the Ukraine and COVID-19; 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; production difficulties, including
capacity and supply constraints and excess inventory levels; labor
relations; interest rates and currency exchange rates; inflation
and deflation; energy prices; prices for agricultural commodities;
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 other pandemics, terrorist attacks
in Europe and elsewhere; our ability to realize the anticipated
benefits from our business initiatives as part of our strategic
plan; 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 earnings
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 U.S. Securities and
Exchange Commission (“SEC”), the Autoriteit Financiële Markten
(“AFM”) and Commissione Nazionale per le Società e la Borsa
(“CONSOB”).
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.
Conference Call and Webcast
Today, at 3:30 p.m. CET / 2:30 p.m. GMT/ 9:30
a.m. ET, management will hold a conference call to present third
quarter 2022 results to financial analysts and institutional
investors. The call can be followed live online at
https://bit.ly/CNH_Industrial_Q3_2022 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.
London, November 8, 2022
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.Condensed
Consolidated Statements of Operations for the three and nine months
ended September 30, 2022 and 2021(Unaudited,
U.S.-GAAP)
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
($ million) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Revenues |
|
|
|
|
|
|
|
|
|
Net sales |
|
5,396 |
|
4,336 |
|
15,189 |
|
12,808 |
|
Finance, interest and other income |
|
485 |
|
410 |
|
1,419 |
|
1,208 |
| TOTAL
REVENUES |
|
5,881 |
|
4,746 |
|
16,608 |
|
14,016 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
4,156 |
|
3,452 |
|
11,819 |
|
10,064 |
|
Selling, general and administrative expenses |
|
422 |
|
349 |
|
1,224 |
|
1,023 |
|
Research and development expenses |
|
213 |
|
157 |
|
609 |
|
453 |
|
Restructuring expenses |
|
11 |
|
15 |
|
19 |
|
21 |
|
Interest expense |
|
190 |
|
127 |
|
490 |
|
417 |
|
Other, net |
|
159 |
|
124 |
|
490 |
|
422 |
| TOTAL COSTS AND
EXPENSES |
|
5,151 |
|
4,224 |
|
14,651 |
|
12,400 |
| |
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES AND EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
|
730 |
|
522 |
|
1,957 |
|
1,616 |
| Income tax (expense)
benefit |
|
(192) |
|
(79) |
|
(579) |
|
(347) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
21 |
|
17 |
|
69 |
|
68 |
| Net income (loss) from
continuing operations |
|
559 |
|
460 |
|
1,447 |
|
1,337 |
| Net income (loss) from
discontinued operations |
|
— |
|
(131) |
|
— |
|
116 |
| NET INCOME
(LOSS) |
|
559 |
|
329 |
|
1,447 |
|
1,453 |
| Net income attributable to
noncontrolling interests |
|
3 |
|
6 |
|
10 |
|
32 |
| NET INCOME (LOSS)
ATTRIBUTABLE TO CNH INDUSTRIAL N.V. |
|
556 |
|
323 |
|
1,437 |
|
1,421 |
| |
|
|
|
|
|
|
|
|
| Basic earnings (loss)
per share attributable to common shareholders (in $) |
|
|
|
|
|
|
|
|
| Continuing operations |
|
0.41 |
|
0.34 |
|
1.06 |
|
0.98 |
| Discontinued operations |
|
— |
|
(0.10) |
|
— |
|
0.07 |
| Basic earnings per
share attributable to CNH Industrial N.V. |
|
0.41 |
|
0.24 |
|
1.06 |
|
1.05 |
| Diluted earnings
(loss) per share attributable to common shareholders (in
$) |
|
|
|
|
|
|
|
|
| Continuing operations |
|
0.41 |
|
0.34 |
|
1.06 |
|
0.98 |
| Discontinued operations |
|
— |
|
(0.10) |
|
— |
|
0.06 |
| Diluted earnings per
share attributable to CNH Industrial N.V. |
|
0.41 |
|
0.24 |
|
1.06 |
|
1.04 |
| Average shares
outstanding (in millions) |
|
|
|
|
|
|
|
|
| Basic |
|
1,350 |
|
1,354 |
|
1,354 |
|
1,354 |
| Diluted |
|
1,355 |
|
1,361 |
|
1,359 |
|
1,360 |
| Cash dividends
declared per common share |
|
— |
|
— |
|
0.302 |
|
0.132 |
These Condensed Consolidated Statements of
Operations should be read in conjunction with the Company’s Audited
Consolidated Financial Statements and Notes for the year ended
December 31, 2021 included in the Annual Report on Form 20-F. These
Condensed Consolidated Statements of Operations represent the
consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.Condensed
Consolidated Balance Sheets as of September 30, 2022 and December
31, 2021(Unaudited, U.S.-GAAP)
| ($ million) |
|
September 30, 2022 |
|
December 31, 2021 |
| ASSETS |
|
|
|
|
| Cash and cash equivalents |
|
3,154 |
|
5,044 |
| Restricted cash |
|
660 |
|
801 |
| Financing receivables,
net |
|
16,901 |
|
15,376 |
| Receivables from Iveco Group
N.V. |
|
224 |
|
— |
| Inventories, net |
|
5,362 |
|
4,216 |
| Property, plant and equipment,
net and equipment under operating lease |
|
2,944 |
|
3,213 |
| Intangible assets, net |
|
4,391 |
|
4,417 |
| Other receivables and
assets |
|
2,208 |
|
2,803 |
| Assets held for
distribution |
|
— |
|
13,546 |
| TOTAL
ASSETS |
|
35,844 |
|
49,416 |
| LIABILITIES AND
EQUITY |
|
|
|
|
| Debt |
|
20,922 |
|
20,897 |
| Payables to Iveco Group
N.V. |
|
95 |
|
502 |
| Other payables and
liabilities |
|
8,418 |
|
9,272 |
| Liabilities held for
distribution |
|
— |
|
11,892 |
| Total
Liabilities |
|
29,435 |
|
42,563 |
| Redeemable noncontrolling
interest |
|
52 |
|
45 |
| Equity |
|
6,357 |
|
6,808 |
| TOTAL LIABILITIES AND
EQUITY |
|
35,844 |
|
49,416 |
These Condensed Consolidated Balance Sheets
should be read in conjunction with the Company’s Audited
Consolidated Financial Statements and Notes for the year ended
December 31, 2021, included in the Annual Report on Form 20-F.
These Condensed Consolidated Balance Sheets represent the
consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.Condensed
Consolidated Statement of Cash Flows for the nine months ended
September 30, 2022 and 2021(Unaudited,
U.S.-GAAP)
| |
|
Nine Months Ended September 30, |
|
($ million) |
|
2022 |
|
2021 |
| Net income (loss) |
|
1,447 |
|
1,453 |
| Less: Net income (loss) of
Discontinued Operations |
|
— |
|
116 |
| Net income (loss) of
Continuing Operations |
|
1,447 |
|
1,337 |
| Adjustments to reconcile net
income (loss) from Continuing Operations to net cash provided by
(used in) operating activities from Continuing Operations: |
|
(2,333) |
|
137 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(886) |
|
1,474 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
418 |
| TOTAL NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
(886) |
|
1,892 |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(1,590) |
|
(1,720) |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
134 |
| TOTAL NET CASH
PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
(1,590) |
|
(1,586) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS |
|
802 |
|
(1,242) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
(450) |
| TOTAL NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
802 |
|
(1,692) |
| Effect of foreign exchange
rate changes on cash and cash equivalents and restricted cash |
|
(357) |
|
(329) |
| DECREASE IN CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH |
|
(2,031) |
|
(1,715) |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, BEGINNING OF YEAR |
|
5,845 |
|
9,629 |
| CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
|
3,814 |
|
7,914 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (Discontinued Operations) |
|
— |
|
720 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (Continuing Operations) |
|
3,814 |
|
7,194 |
These Condensed 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, 2021 included in the Annual Report on Form 20-F. These
Condensed 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,
2022 and 2021(Unaudited, U.S.-GAAP)
| |
|
Three Months Ended September 30, 2022 |
|
Three Months Ended September 30, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
5,396 |
|
— |
|
— |
|
5,396 |
|
4,336 |
|
— |
|
— |
|
4,336 |
| Finance, interest and other
income |
|
27 |
|
482 |
|
(24) |
(2) |
485 |
|
16 |
|
405 |
|
(11) |
(2) |
410 |
| TOTAL
REVENUES |
|
5,423 |
|
482 |
|
(24) |
|
5,881 |
|
4,352 |
|
405 |
|
(11) |
|
4,746 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
4,156 |
|
— |
|
— |
|
4,156 |
|
3,452 |
|
— |
|
— |
|
3,452 |
| Selling, general and
administrative expenses |
|
377 |
|
45 |
|
— |
|
422 |
|
317 |
|
32 |
|
— |
|
349 |
| Research and development
expenses |
|
213 |
|
— |
|
— |
|
213 |
|
157 |
|
— |
|
— |
|
157 |
| Restructuring expenses |
|
11 |
|
— |
|
— |
|
11 |
|
15 |
|
— |
|
— |
|
15 |
| Interest expense |
|
54 |
|
160 |
|
(24) |
(3) |
190 |
|
37 |
|
101 |
|
(11) |
(3) |
127 |
| Other, net |
|
(3) |
|
162 |
|
— |
|
159 |
|
(24) |
|
148 |
|
— |
|
124 |
| TOTAL COSTS AND
EXPENSES |
|
4,808 |
|
367 |
|
(24) |
|
5,151 |
|
3,954 |
|
281 |
|
(11) |
|
4,224 |
| INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES AND EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
|
615 |
|
115 |
|
— |
|
730 |
|
398 |
|
124 |
|
— |
|
522 |
| Income tax (expense)
benefit |
|
(160) |
|
(32) |
|
— |
|
(192) |
|
(48) |
|
(31) |
|
— |
|
(79) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
18 |
|
3 |
|
— |
|
21 |
|
14 |
|
3 |
|
— |
|
17 |
| NET INCOME (LOSS) Continuing
Operations |
|
473 |
|
86 |
|
— |
|
559 |
|
364 |
|
96 |
|
— |
|
460 |
| NET INCOME (LOSS) Discontinued
Operations |
|
— |
|
— |
|
— |
|
— |
|
(153) |
|
22 |
|
— |
|
(131) |
| NET INCOME
(LOSS) |
|
473 |
|
86 |
|
— |
|
559 |
|
211 |
|
118 |
|
— |
|
329 |
(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, 2022 and 2021(Unaudited,
U.S.-GAAP)
| |
|
Nine Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
15,189 |
|
— |
|
— |
|
15,189 |
|
12,808 |
|
— |
|
— |
|
12,808 |
| Finance, interest and other
income |
|
52 |
|
1,419 |
|
(52) |
(2) |
1,419 |
|
43 |
|
1,194 |
|
(29) |
(2) |
1,208 |
| TOTAL
REVENUES |
|
15,241 |
|
1,419 |
|
(52) |
|
16,608 |
|
12,851 |
|
1,194 |
|
(29) |
|
14,016 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
11,819 |
|
— |
|
— |
|
11,819 |
|
10,064 |
|
— |
|
— |
|
10,064 |
| Selling, general and
administrative expenses |
|
1,087 |
|
137 |
|
— |
|
1,224 |
|
936 |
|
87 |
|
— |
|
1,023 |
| Research and development
expenses |
|
609 |
|
— |
|
— |
|
609 |
|
453 |
|
— |
|
— |
|
453 |
| Restructuring expenses |
|
19 |
|
— |
|
— |
|
19 |
|
21 |
|
— |
|
— |
|
21 |
| Interest expense |
|
149 |
|
393 |
|
(52) |
(3) |
490 |
|
135 |
|
311 |
|
(29) |
(3) |
417 |
| Other, net |
|
(41) |
|
531 |
|
— |
|
490 |
|
(41) |
|
463 |
|
— |
|
422 |
| TOTAL COSTS AND
EXPENSES |
|
13,642 |
|
1,061 |
|
(52) |
|
14,651 |
|
11,568 |
|
861 |
|
(29) |
|
12,400 |
| INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES AND EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
|
1,599 |
|
358 |
|
— |
|
1,957 |
|
1,283 |
|
333 |
|
— |
|
1,616 |
| Income tax (expense)
benefit |
|
(473) |
|
(106) |
|
— |
|
(579) |
|
(264) |
|
(83) |
|
— |
|
(347) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
58 |
|
11 |
|
— |
|
69 |
|
59 |
|
9 |
|
— |
|
68 |
| NET INCOME (LOSS) Continuing
Operations |
|
1,184 |
|
263 |
|
— |
|
1,447 |
|
1,078 |
|
259 |
|
— |
|
1,337 |
| NET INCOME (LOSS) Discontinued
Operations |
|
— |
|
— |
|
— |
|
— |
|
67 |
|
49 |
|
— |
|
116 |
| NET INCOME
(LOSS) |
|
1,184 |
|
263 |
|
— |
|
1,447 |
|
1,145 |
|
308 |
|
— |
|
1,453 |
(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, 2022 and December 31,
2021(Unaudited, U.S.-GAAP)
| |
|
September 30, 2022 |
|
December 31, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
2,736 |
|
418 |
|
— |
|
3,154 |
|
4,386 |
|
658 |
|
— |
|
5,044 |
| Restricted cash |
|
131 |
|
529 |
|
— |
|
660 |
|
128 |
|
673 |
|
— |
|
801 |
| Financing receivables,
net |
|
601 |
|
17,068 |
|
(768) |
(2) |
16,901 |
|
199 |
|
15,508 |
|
(331) |
(2) |
15,376 |
| Receivables from Iveco Group
N.V. |
|
151 |
|
73 |
|
— |
|
224 |
|
— |
|
— |
|
— |
|
— |
| Inventories, net |
|
5,344 |
|
18 |
|
— |
|
5,362 |
|
4,187 |
|
29 |
|
— |
|
4,216 |
| Property, plant and equipment,
net and equipment on operating lease |
|
1,434 |
|
1,510 |
|
— |
|
2,944 |
|
1,504 |
|
1,709 |
|
— |
|
3,213 |
| Intangible assets, net |
|
4,231 |
|
160 |
|
— |
|
4,391 |
|
4,255 |
|
162 |
|
— |
|
4,417 |
| Other receivables and
assets |
|
1,957 |
|
437 |
|
(186) |
(3) |
2,208 |
|
2,656 |
|
345 |
|
(198) |
(3) |
2,803 |
| Assets held for
distribution |
|
— |
|
— |
|
— |
|
— |
|
9,814 |
|
4,543 |
|
(811) |
|
13,546 |
| TOTAL
ASSETS |
|
16,585 |
|
20,213 |
|
(954) |
|
35,844 |
|
27,129 |
|
23,627 |
|
(1,340) |
|
49,416 |
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debt |
|
4,827 |
|
16,863 |
|
(768) |
(2) |
20,922 |
|
5,485 |
|
15,743 |
|
(331) |
(2) |
20,897 |
| Payables to Iveco Group
N.V. |
|
6 |
|
89 |
|
— |
|
95 |
|
334 |
|
168 |
|
— |
|
502 |
| Other payables and
liabilities |
|
7,550 |
|
1,054 |
|
(186) |
(3) |
8,418 |
|
8,426 |
|
1,044 |
|
(198) |
(3) |
9,272 |
| Liabilities held for
distribution |
|
— |
|
— |
|
— |
|
— |
|
8,985 |
|
3,718 |
|
(811) |
|
11,892 |
| Total Liabilities |
|
12,383 |
|
18,006 |
|
(954) |
|
29,435 |
|
23,230 |
|
20,673 |
|
(1,340) |
|
42,563 |
| Redeemable noncontrolling
interest |
|
52 |
|
— |
|
— |
|
52 |
|
45 |
|
— |
|
— |
|
45 |
| Equity |
|
4,150 |
|
2,207 |
|
— |
|
6,357 |
|
3,854 |
|
2,954 |
|
— |
|
6,808 |
| TOTAL LIABILITIES AND
EQUITY |
|
16,585 |
|
20,213 |
|
(954) |
|
35,844 |
|
27,129 |
|
23,627 |
|
(1,340) |
|
49,416 |
(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,
2022 and 2021(Unaudited, U.S.-GAAP)
| |
|
Nine months ended September 30, 2022 |
|
Nine months ended September 30, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
(3) |
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
(3) |
Consolidated |
| Net income (loss) |
|
1,184 |
|
263 |
|
— |
|
1,447 |
|
1,145 |
|
308 |
|
— |
|
1,453 |
|
Less: Net income (loss) of Discontinued Operations |
|
— |
|
— |
|
— |
|
— |
|
67 |
|
49 |
|
— |
|
116 |
| Net income (loss) of
Continuing Operations |
|
1,184 |
|
263 |
|
— |
|
1,447 |
|
1,078 |
|
259 |
|
— |
|
1,337 |
|
Adjustments to reconcile net income (loss) from Continuing
Operations to net cash provided by (used in) operating activities
from Continuing Operations: |
|
(1,366) |
|
(852) |
|
(115) |
(2) |
(2,333) |
|
(152) |
|
449 |
|
(160) |
|
137 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(182) |
|
(589) |
|
(115) |
|
(886) |
|
926 |
|
708 |
|
(160) |
|
1,474 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
— |
|
— |
|
— |
|
(103) |
|
523 |
|
(2) |
|
418 |
| TOTAL NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
(182) |
|
(589) |
|
(115) |
|
(886) |
|
823 |
|
1,231 |
|
(162) |
|
1,892 |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(656) |
|
(955) |
|
21 |
|
(1,590) |
|
(940) |
|
(791) |
|
11 |
|
(1,720) |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
— |
|
— |
|
— |
|
113 |
|
19 |
|
2 |
|
134 |
| TOTAL NET CASH
PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
(656) |
|
(955) |
|
21 |
|
(1,590) |
|
(827) |
|
(772) |
|
13 |
|
(1,586) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(471) |
|
1,179 |
|
94 |
|
802 |
|
(1,447) |
|
56 |
|
149 |
|
(1,242) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
— |
|
— |
|
— |
|
(10) |
|
(440) |
|
- |
|
(450) |
| TOTAL NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
(471) |
|
1,179 |
|
94 |
(4) |
802 |
|
(1,457) |
|
(384) |
|
149 |
|
(1,692) |
| Effect of foreign exchange
rate changes on cash and cash equivalents and restricted cash |
|
(338) |
|
(19) |
|
— |
|
(357) |
|
(300) |
|
(29) |
|
— |
|
(329) |
| DECREASE IN CASH AND
CASH EQUIVALENTS AND RESTRICTED CASH |
|
(1,647) |
|
(384) |
|
— |
|
(2,031) |
|
(1,761) |
|
46 |
|
— |
|
(1,715) |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, BEGINNING OF YEAR |
|
4,514 |
|
1,331 |
|
— |
|
5,845 |
|
8,116 |
|
1,513 |
|
— |
|
9,629 |
| CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
|
2,867 |
|
947 |
|
— |
|
3,814 |
|
6,355 |
|
1,559 |
|
— |
|
7,914 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (DISCONTINUED OPERATIONS) |
|
— |
|
— |
|
— |
|
— |
|
510 |
|
210 |
|
— |
|
720 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (CONTINUING OPERATIONS) |
|
2,867 |
|
947 |
|
— |
|
3,814 |
|
5,845 |
|
1,349 |
|
— |
|
7,194 |
(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.(4) This item includes the
elimination of paid in capital from Industrial Activities to
Financial Services.
Other Supplemental Financial Information
(Unaudited)
|
Reconciliation of Consolidated Net Income to Adjusted EBIT
of Industrial Activities by segment under U.S.-GAAP |
| ($
million) |
|
Three Months ended September 30, 2022 |
|
|
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
559 |
| Less: Consolidated Income tax
(expense) benefit |
|
|
|
|
|
|
|
(192) |
| Consolidated Income
before taxes |
|
|
|
|
|
|
|
751 |
| Less: Financial Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
86 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
32 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
27 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
14 |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(35) |
| Adjustments for the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
11 |
|
— |
|
— |
|
11 |
|
Other discrete items(2) |
|
— |
|
— |
|
20 |
|
20 |
| Adjusted EBIT of
Industrial Activities |
|
666 |
|
24 |
|
(20) |
|
670 |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months ended September 30, 2021 |
| |
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
329 |
| Less: Consolidated Net Income
(loss) of Discontinued Operations |
|
|
|
|
|
|
|
(131) |
| Consolidated Net
income (loss) of Continuing Operations |
|
|
|
|
|
|
|
460 |
| Less: Consolidated Income tax
(expense) benefit |
|
|
|
|
|
|
|
(79) |
| Consolidated Income
(loss) before taxes (continuing operations) |
|
|
|
|
|
|
|
539 |
| Less: Financial Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
96 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
31 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
21 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
(21) |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(33) |
| Adjustments for the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
4 |
|
11 |
|
— |
|
15 |
|
Other discrete items(2) |
|
— |
|
— |
|
26 |
|
26 |
| Adjusted EBIT of
Industrial Activities |
|
415 |
|
21 |
|
(16) |
|
420 |
(1) In the three months ended September 30,
2022, this item includes the pre-tax gain of $30 million as a
result of the amortization over approximately 4.5 years of the $527
million positive impact from the 2018 modification of a healthcare
plan in the U.S. and a pre-tax gain of $6 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 months ended September 30, 2021, this item includes
the pre-tax gain of $30 million as a result of the 2018
modification.
(2) In the three months ended September 30,
2022, this item included $7 million of separation costs incurred in
connection with our spin-off of the Iveco Group Business and $14
million of costs related to the activity of the Raven segments held
for sale, including the loss on the sale of the Aerostar division.
In the three months ended September 30, 2021, this item included
$24 million separation costs in connection with the spin-off of the
Iveco Group business.
Other Supplemental Financial
Information(Unaudited)
|
Reconciliation of Consolidated Net Income to Adjusted EBIT
of Industrial Activities by segment under US-GAAP |
| ($
million) |
|
Nine Months ended September 30, 2022 |
|
|
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
1,447 |
| Less: Consolidated Income tax
(expense) benefit |
|
|
|
|
|
|
|
(579) |
| Consolidated Income
before taxes |
|
|
|
|
|
|
|
2,026 |
| Less: Financial Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
263 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
106 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
97 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
14 |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(112) |
| Adjustments for the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
16 |
|
3 |
|
— |
|
19 |
|
Other discrete items(2) |
|
— |
|
— |
|
78 |
|
78 |
| Adjusted EBIT of
Industrial Activities |
|
1,755 |
|
90 |
|
(92) |
|
1,753 |
| |
|
|
|
|
|
|
|
|
| |
|
Nine Months ended September 30, 2021 |
| |
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
1,453 |
| Less: Consolidated Net Income
(loss) of Discontinued Operations |
|
|
|
|
|
|
|
116 |
| Consolidated Net
income (loss) of Continuing Operations |
|
|
|
|
|
|
|
1,337 |
| Less: Consolidated Income tax
(expense) benefit |
|
|
|
|
|
|
|
(347) |
| Consolidated Income
(loss) before taxes (continuing operations) |
|
|
|
|
|
|
|
1,684 |
| Less: Financial Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
259 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
83 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
92 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
(6) |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(102) |
| Adjustments for the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
8 |
|
13 |
|
— |
|
21 |
|
Other discrete items(2) |
|
— |
|
— |
|
38 |
|
38 |
| Adjusted EBIT of
Industrial Activities |
|
1,396 |
|
70 |
|
(81) |
|
1,385 |
(1) In the nine months ended September 30,
2022, this item includes the pre-tax gain of $90 million as a
result of the amortization over approximately 4.5 years of the $527
million positive impact from the 2018 modification of a healthcare
plan in the U.S. and a pre-tax gain of $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 nine months ended September 30, 2021, this item includes the
pre-tax gain of $90 million as a result of the 2018
modification.
(2) In the nine months ended September 30,
2022, this item included $43 million of asset write-downs, $13
million of separation costs incurred in a connection with our
spin-off of the Iveco Group Business and $22 million of costs
related to the activity of the Raven segments held for sale,
including the loss on the sale of the Engineered Films and Aerostar
divisions. In the nine months ended September 30, 2021, this item
included $32 million separation costs in connection with the
spin-off of the Iveco Group business.
Other Supplemental Financial
Information
(Unaudited)
|
Reconciliation of Total (Debt) to Net Cash (Debt) under
US-GAAP |
| ($ million) |
|
Consolidated |
|
Industrial
Services |
|
Financial
Services |
| |
|
September 30, 2022 |
|
December 31, 2021 |
|
September 30, 2022 |
|
December 31, 2021 |
|
September 30, 2022 |
|
December 31, 2021 |
| Third party (debt) |
|
(20,922) |
|
(20,897) |
|
(4,644) |
|
(5,335) |
|
(16,278) |
|
(15,562) |
| Intersegment notes
payable |
|
— |
|
— |
|
(183) |
|
(150) |
|
(585) |
|
(181) |
| Payable to Iveco Group
N.V.(4) |
|
(95) |
|
(3,986) |
|
(6) |
|
(3,764) |
|
(89) |
|
(222) |
| Total
(Debt)(1) |
|
(21,017) |
|
(24,883) |
|
(4,833) |
|
(9,249) |
|
(16,952) |
|
(15,965) |
| Cash and cash equivalents |
|
3,154 |
|
5,044 |
|
2,736 |
|
4,386 |
|
418 |
|
658 |
| Restricted cash |
|
660 |
|
801 |
|
131 |
|
128 |
|
529 |
|
673 |
| Intersegment notes
receivable |
|
— |
|
— |
|
585 |
|
181 |
|
183 |
|
150 |
| Receivables from Iveco Group
N.V.(4) |
|
224 |
|
3,484 |
|
151 |
|
3,430 |
|
73 |
|
54 |
| Other current financial
assets(2) |
|
2 |
|
1 |
|
2 |
|
1 |
|
— |
|
— |
| Derivatives hedging debt |
|
(44) |
|
(3) |
|
(44) |
|
(3) |
|
— |
|
— |
| Net Cash
(Debt)(3) |
|
(17,021) |
|
(15,556) |
|
(1,272) |
|
(1,126) |
|
(15,749) |
|
(14,430) |
(1) Total (Debt) of Industrial Activities
includes Intersegment notes payable to Financial Services of $183
million and $150 million as of September 30, 2022 and December 31,
2021, respectively. Total (Debt) of Financial Services includes
Intersegment notes payable to Industrial Activities of $585 million
and $181 million as of September 30, 2022 and December 31, 2021,
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 ($402) million and
($31) million as of September 30, 2022 and December 31, 2021,
respectively.(4) For December 31, 2021, this item is shown net
on the CNH Industrial balance sheet.
|
Reconciliation of Cash and cash equivalents to Available
liquidity under US-GAAP |
| ($ million) |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 |
| Cash and cash equivalents |
3,154 |
2,855 |
3,219 |
5,044 |
| Restricted cash |
660 |
729 |
842 |
801 |
| Undrawn committed facilities |
4,700 |
5,002 |
5,087 |
5,177 |
| Receivables from Iveco Group
N.V. |
224 |
281 |
297 |
3,484 |
| Payables to Iveco Group N.V. |
(95) |
(73) |
(47) |
(3,986) |
| Other current financial
assets(1) |
2 |
1 |
1 |
1 |
| Available liquidity |
8,645 |
8,795 |
9,399 |
10,521 |
(1) This item includes short-term deposits and investments
towards high-credit rating counterparties.
Other Supplemental Financial
Information
(Unaudited)
|
Change in Net Cash (Debt) of Industrial Activities under
US-GAAP |
|
Nine Months ended September 30, |
|
|
|
Three Months ended September 30, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
(1,126) |
|
(893) |
|
Net Cash (Debt) of Industrial Activities at beginning of
period |
|
(1,564) |
|
(148) |
|
1,753 |
|
1,385 |
|
Adjusted EBIT of Industrial
Activities |
|
670 |
|
420 |
|
250 |
|
217 |
|
Depreciation and
Amortization |
|
84 |
|
71 |
|
2 |
|
1 |
|
Depreciation of assets under
operating leases |
|
1 |
|
— |
|
(511) |
|
(308) |
|
Cash interest and taxes |
|
(195) |
|
(129) |
|
294 |
|
261 |
|
Changes in provisions and
similar(1) |
|
194 |
|
117 |
|
(1,967) |
|
(656) |
|
Change in working capital |
|
(417) |
|
(445) |
|
(243) |
|
(195) |
|
Investments in property, plant
and equipment, and intangible assets |
|
(106) |
|
(90) |
|
(31) |
|
(2) |
|
Other changes |
|
(29) |
|
(14) |
|
(453) |
|
703 |
|
Free cash flow of
Industrial Activities – Continuing operations |
|
202 |
|
(70) |
|
(532) |
|
(184) |
|
Capital increases and
dividends(3) |
|
(77) |
|
(1) |
|
839 |
|
249 |
|
Currency translation
differences and other(2) |
|
167 |
|
94 |
|
(146) |
|
768 |
|
Change in Net Cash
(Debt) of Industrial Activities – Continuing
operations |
|
292 |
|
23 |
|
(1,272) |
|
(125) |
|
Net Cash (Debt) of
Industrial Activities at end of period |
|
(1,272) |
|
(125) |
(1) Including other cash flow items related to operating
lease.
(2) In the nine months ended September 30, 2022
this item also includes the proceed of Raven Engineered Films
Division for $350 million. In the nine months ended September 30,
2021, this item also includes the charge of $8 million related to
the repurchase of notes.(3) In the three and nine months ended
September 30, 2022, this item also includes share buy-back
transactions.
|
Reconciliation of Net cash provided by (used in) Operating
Activities to Free cash flow of Industrial Activities under
US-GAAP |
|
Nine Months ended September 30, |
|
|
|
Three Months ended September 30, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
(886) |
|
1,474 |
|
Net cash provided by (used in) Operating Activities
(Continuing Operations) |
|
272 |
|
673 |
|
704 |
|
(548) |
|
Cash flows from Operating
Activities of Financial Services net of eliminations |
|
27 |
|
(628) |
|
17 |
|
(8) |
|
Change in derivatives hedging
debt of Industrial Activities and other |
|
46 |
|
(1) |
|
(14) |
|
(18) |
|
Investments in assets sold
under operating lease assets of Industrial Activities |
|
(8) |
|
(10) |
|
(243) |
|
(195) |
|
Investments in property, plant
and equipment, and intangible assets of Industrial Activities |
|
(106) |
|
(90) |
|
(31) |
|
(2) |
|
Other changes(1) |
|
(29) |
|
(14) |
|
(453) |
|
703 |
|
Free cash flow of
Industrial Activities |
|
202 |
|
(70) |
(1) This item primarily includes change in intersegment
financial receivables and capital increases in intersegment
investments.
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 US-GAAP |
|
Nine Months ended September 30, |
|
|
|
Three Months ended September 30, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
1,447 |
|
1,337 |
|
Net income (loss) – Continuing Operations |
|
559 |
|
460 |
|
5 |
|
(23) |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(4) |
|
11 |
|
66 |
|
8 |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
2 |
|
(8) |
|
1,518 |
|
1,322 |
|
Adjusted net income
(loss) |
|
557 |
|
463 |
|
1,508 |
|
1,315 |
|
Adjusted net income (loss)
attributable to CNH Industrial N.V. |
|
554 |
|
460 |
|
1,359 |
|
1,360 |
|
Weighted average shares
outstanding – diluted (million) |
|
1,355 |
|
1,361 |
|
1.11 |
|
0.97 |
|
Adjusted diluted EPS
($) |
|
0.41 |
|
0.34 |
|
|
|
|
|
|
|
|
|
|
|
1,957 |
|
1,616 |
|
Income (loss) from
continuing operations before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and
affiliates |
|
730 |
|
522 |
|
5 |
|
(23) |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(4) |
|
11 |
|
1,962 |
|
1,593 |
|
Adjusted income (loss)
from continuing operations before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and affiliates
(A) |
|
726 |
|
533 |
|
|
|
|
|
|
|
|
|
|
|
(579) |
|
(347) |
|
Income tax (expense)
benefit |
|
(192) |
|
(79) |
|
66 |
|
8 |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
2 |
|
(8) |
|
(513) |
|
(339) |
|
Adjusted income tax
(expense) benefit (B) |
|
(190) |
|
(87) |
|
|
|
|
|
|
|
|
|
|
|
26.1% |
|
21.3% |
|
Adjusted Effective Tax
Rate (Adjusted ETR) (C=B/A) |
|
26.2% |
|
16.3% |
|
23.2% |
|
|
|
|
|
|
|
|
| |
|
|
|
a) Adjustments
impacting Income (loss) from continuing operations before income
tax (expense) benefit and equity in income of unconsolidated
subsidiaries and affiliates |
|
|
|
|
|
19 |
|
21 |
|
Restructuring expenses |
|
11 |
|
15 |
|
— |
|
8 |
|
Loss on repurchase of
notes |
|
— |
|
— |
|
(90) |
|
(90) |
|
Pre-tax gain related to the
2018 modification of a healthcare plan in the U.S. |
|
(30) |
|
(30) |
|
(18) |
|
— |
|
Pre-tax gain related to the
2021 modification of a healthcare plan in the U.S. |
|
(6) |
|
— |
|
43 |
|
— |
|
Asset write-down: Industrial
Activities, Russia Operations |
|
(1) |
|
— |
|
16 |
|
— |
|
Asset write-down: Financial
Services, Russia Operations |
|
1 |
|
— |
|
13 |
|
32 |
|
Spin related costs |
|
7 |
|
24 |
|
— |
|
6 |
|
Other discrete items |
|
— |
|
2 |
|
22 |
|
— |
|
Activity of the Raven Segments
held for sale, including loss on sale of the Aerostar and
Engineered Films Division |
|
14 |
|
— |
|
5 |
|
(23) |
|
Total |
|
(4) |
|
11 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
b) Adjustments
impacting Income tax (expense) benefit |
|
|
|
|
|
66 |
|
13 |
|
Tax effect of adjustments
impacting Income (loss) before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and
affiliates(1) |
|
5 |
|
(1) |
|
— |
|
(5) |
|
Other |
|
(3) |
|
(7) |
|
66 |
|
8 |
|
Total |
|
2 |
|
(8) |
(1) Includes $12 million of increase to the valuation allowances
on historical deferred tax assets as a result of the suspension of
operations in Russia.
Other Supplemental Financial
Information(Unaudited)
|
Reconciliation of Adjusted gross profit to gross profit
under US-GAAP |
|
Nine Months ended September 30, |
|
|
|
Three Months ended September 30, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
15,189 |
|
12,808 |
|
Net Sales (A) |
|
5,396 |
|
4,336 |
|
11,819 |
|
10,064 |
|
Cost of goods sold |
|
4,156 |
|
3,452 |
|
3,370 |
|
2,744 |
|
Gross profit (B) |
|
1,240 |
|
884 |
|
34 |
|
— |
|
Asset write down (Russia
operations) |
|
— |
|
— |
|
3,404 |
|
2,744 |
|
Adjusted gross profit (C) |
|
1,240 |
|
884 |
|
|
|
|
|
|
|
|
|
|
|
22.2% |
|
21.4% |
|
Gross profit margin (B ÷
A) |
|
23.0% |
|
20.4% |
|
22.4% |
|
21.4% |
|
Adjusted gross profit margin
(C ÷ A) |
|
23.0% |
|
20.4% |
|
Revenues by Segment under EU-IFRS |
|
Nine Months ended September 30, |
|
|
|
Three Months ended September 30, |
|
2022 |
|
2021 |
% Change |
|
($ million) |
|
2022 |
|
2021 |
|
% Change |
|
12,600 |
|
10,586 |
|
19.0% |
|
Agriculture |
|
4,501 |
|
3,568 |
|
26.1% |
|
2,589 |
|
2,237 |
|
15.7% |
|
Construction |
|
895 |
|
773 |
|
15.8% |
|
— |
|
— |
|
— |
|
Eliminations and other |
|
— |
|
1 |
|
n.m. |
|
15,189 |
|
12,823 |
|
18.5% |
|
Total Industrial
Activities of Continuing Operations |
|
5,396 |
|
4,342 |
|
24.3% |
|
1,411 |
|
1,188 |
|
18.8% |
|
Financial Services |
|
478 |
|
402 |
|
18.9% |
|
(33) |
|
(19) |
|
n.m. |
|
Eliminations and other |
|
(14) |
|
(7) |
|
n.m. |
|
16,567 |
|
13,992 |
|
18.4% |
|
Total of Continuing
Operations |
|
5,860 |
|
4,737 |
|
23.7% |
|
Adjusted EBIT of Industrial
Activities(1) by
Segment under EU-IFRS |
| |
|
Three Months ended September 30, |
|
|
|
2022 |
|
2021 |
|
$ Change |
|
2022 adjusted EBIT margin |
|
2021 adjusted EBIT margin |
| Agriculture |
|
661 |
|
406 |
|
255 |
|
14.7% |
|
11.4% |
| Construction |
|
20 |
|
17 |
|
3 |
|
2.2% |
|
2.2% |
| Unallocated items,
eliminations and other |
|
(21) |
|
(20) |
|
(1) |
|
— |
|
— |
| Adjusted EBIT of
Industrial Activities of Continuing Operations |
|
660 |
|
403 |
|
257 |
|
12.2% |
|
9.3% |
(1) 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.
|
Adjusted EBIT of Industrial
Activities(1) by
Segment under EU-IFRS |
|
|
|
Nine Months ended September 30, |
|
|
|
2022 |
|
2021 |
|
$ Change |
|
2022 adjusted EBIT margin |
|
2021 adjusted EBIT margin |
| Agriculture |
|
1,744 |
|
1,369 |
|
375 |
|
13.8% |
|
12.9% |
| Construction |
|
81 |
|
64 |
|
17 |
|
3.1% |
|
2.9% |
| Unallocated items,
eliminations and other |
|
(94) |
|
(91) |
|
(3) |
|
— |
|
— |
| Adjusted EBIT of
Industrial Activities of Continuing Operations |
|
1,731 |
|
1,342 |
|
389 |
|
11.4% |
|
10.5% |
(1) 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.
Other Supplemental Financial
Information (Unaudited)
|
Other key data under EU-IFRS |
| |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
December 31, 2021 |
| Total Assets |
36,579 |
36,403 |
37,272 |
51,122 |
| Total Equity |
6,965 |
6,428 |
6,258 |
8,426 |
| Equity attributable to CNH Industrial
N.V. |
6,962 |
6,421 |
6,251 |
8,393 |
| Net Cash (Debt) of Continuing
Operations |
(17,392) |
(17,422) |
(17,454) |
(15,840) |
| Net Cash (Debt) of Discontinued
Operations |
— |
— |
— |
(1,480) |
| Net Cash (Debt) of CNH Industrial |
(17,392) |
(17,422) |
(17,454) |
(17,320) |
| of which Net Cash (Debt) of
Industrial Activities(1) of Continuing Operations |
(1,571) |
(1,892) |
(2,452) |
(1,374) |
| of which Net Cash (Debt) of
Industrial Activities(1) of Discontinued Operations |
— |
— |
— |
1,204 |
| of which Net Cash (Debt) of
Industrial Activities(1) |
(1,571) |
(1,892) |
(2,452) |
(170) |
| Net Income of Financial Services of
Continuing Operations |
240 |
159 |
73 |
357 |
| Net Income of Financial Services of
Discontinued Operations |
— |
— |
— |
71 |
(1) 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.
|
Net income (loss) reconciliation US-GAAP to
EU-IFRS |
|
Nine Months ended September 30, |
|
|
|
Three Months ended September 30, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
1,447 |
|
1,337 |
|
Net income (loss) in accordance with U.S.
GAAP |
|
559 |
|
460 |
|
|
|
|
|
Adjustments to conform with
EU-IFRS: |
|
|
|
|
|
(23) |
|
(34) |
|
Development costs |
|
(12) |
|
(14) |
|
(137) |
|
(104) |
|
Other adjustments(1) |
|
(29) |
|
(38) |
|
20 |
|
30 |
|
Tax impact on adjustments and
other income tax differences |
|
(2) |
|
14 |
|
(140) |
|
(108) |
|
Total
adjustments |
|
(43) |
|
(38) |
|
1,307 |
|
1,229 |
|
Profit (loss) in
accordance with EU-IFRS |
|
516 |
|
422 |
(1) This item also includes the different accounting
impacts from the modifications of a healthcare plan in the U.S.
|
Total Equity reconciliation US-GAAP to
EU-IFRS |
| |
September 30, 2022 |
June 30, 2022 |
March 30, 2022 |
December 31, 2021 |
|
Total Equity under U.S. GAAP |
6,357 |
5,794 |
5,609 |
6,808 |
| Adjustments to conform with
EU-IFRS: |
|
|
|
|
|
Development costs |
719 |
751 |
783 |
2,058 |
|
Other adjustments |
59 |
45 |
41 |
28 |
|
Tax impact on adjustments and other income tax differences |
(170) |
(162) |
(175) |
(468) |
| Total adjustments |
608 |
634 |
649 |
1,618 |
| Total Equity under
EU-IFRS |
6,965 |
6,428 |
6,258 |
8,426 |
Other Supplemental Financial
Information(Unaudited)
|
Translation of financial statements denominated in a
currency other than the U.S. dollar |
|
The principal exchange rates used to translate into U.S. dollars
the financial statements prepared in currencies other than the U.S.
dollar were as follows: |
| |
|
Nine months Ended September 30, 2022 |
|
|
|
Nine months Ended September 30, 2021 |
|
|
|
Average |
|
At September 30 |
|
At December 31, 2021 |
|
Average |
|
At September 30, |
| Euro |
|
0.940 |
|
1.026 |
|
0.883 |
|
0.836 |
|
0.864 |
| Pound sterling |
|
0.796 |
|
0.906 |
|
0.742 |
|
0.722 |
|
0.743 |
| Swiss franc |
|
0.951 |
|
0.981 |
|
0.912 |
|
0.912 |
|
0.935 |
| Polish zloty |
|
4.393 |
|
4.996 |
|
4.059 |
|
3.801 |
|
3.990 |
| Brazilian real |
|
5.134 |
|
5.426 |
|
5.571 |
|
5.330 |
|
5.409 |
| Canadian dollar |
|
1.282 |
|
1.375 |
|
1.271 |
|
1.251 |
|
1.274 |
| Turkish lira |
|
15.867 |
|
18.625 |
|
13.450 |
|
8.118 |
|
8.894 |
|
Condensed Consolidated Income Statement for the three and
nine months ended September 30, 2022 and 2021 |
|
(Unaudited, EU-IFRS) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
($ million) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Net revenues |
|
5,860 |
|
4,737 |
|
16,567 |
|
13,992 |
| Cost of sales |
|
4,473 |
|
3,704 |
|
12,767 |
|
10,838 |
| Selling, general and
administrative costs |
|
408 |
|
342 |
|
1,180 |
|
1,006 |
| Research and development
costs |
|
225 |
|
171 |
|
637 |
|
490 |
| Result from investments: |
|
|
|
|
|
|
|
|
| Share of the profit/(loss) of
investees accounted for using the equity method |
|
22 |
|
16 |
|
72 |
|
69 |
| Restructuring costs |
|
11 |
|
16 |
|
19 |
|
24 |
| Other income/(expenses) |
|
(24) |
|
(1) |
|
(63) |
|
(46) |
| Financial
income/(expenses) |
|
(31) |
|
(32) |
|
(107) |
|
(111) |
| PROFIT/(LOSS) BEFORE
TAXES |
|
710 |
|
487 |
|
1,866 |
|
1,546 |
| Income tax (expense)
benefit |
|
(194) |
|
(65) |
|
(559) |
|
(317) |
| PROFIT/(LOSS) FROM CONTINUING
OPERATIONS |
|
516 |
|
422 |
|
1,307 |
|
1,229 |
| PROFIT/(LOSS) FROM
DISCONTINUED OPERATIONS, NET OF TAX |
|
— |
|
28 |
|
— |
|
200 |
| PROFIT/(LOSS) FOR THE
PERIOD |
|
516 |
|
450 |
|
1,307 |
|
1,429 |
| |
|
|
|
|
|
|
|
|
| PROFIT/(LOSS) FOR THE PERIOD
FROM CONTINUING OPERATIONS ATTRIBUTABLE TO: |
|
|
|
|
|
|
|
|
| Owners of the parent |
|
513 |
|
419 |
|
1,297 |
|
1,222 |
| Non-controlling interests |
|
3 |
|
3 |
|
10 |
|
7 |
| |
|
|
|
|
|
|
|
|
| (in $) |
|
|
|
|
|
|
|
|
| BASIC EARNINGS/(LOSS)
PER COMMON SHARE |
|
0.38 |
|
0.33 |
|
0.96 |
|
1.03 |
| Basic earnings/(loss) per
common share from continuing operations |
|
— |
|
0.31 |
|
— |
|
0.90 |
| DILUTED
EARNINGS/(LOSS) PER COMMON SHARE |
|
0.38 |
|
0.33 |
|
0.95 |
|
1.03 |
| Diluted earnings/(loss) per
common share from continuing operations |
|
— |
|
0.31 |
|
— |
|
0.90 |
Other Supplemental Financial
Information(Unaudited)
|
Condensed Consolidated Statement of Financial Position as
of September 30, 2022 and December 31, 2021 |
|
(Unaudited, EU-IFRS) |
|
|
|
|
| ($ million) |
|
September 30, 2022 |
|
December 31, 2021 |
| ASSETS |
|
|
|
|
| Intangible assets |
|
5,064 |
|
5,159 |
| Property, plant and equipment
and Leased assets |
|
3,182 |
|
3,435 |
| Inventories |
|
5,433 |
|
4,228 |
| Receivables from financing
activities |
|
17,180 |
|
15,443 |
| Cash and cash equivalents |
|
3,814 |
|
5,845 |
| Other receivables and
assets |
|
1,906 |
|
2,535 |
| Assets held for
distribution(*) |
|
— |
|
14,477 |
| TOTAL
ASSETS |
|
36,579 |
|
51,122 |
| EQUITY AND LIABILITIES |
|
|
|
|
| Issued capital and reserves
attributable to owners of the parent |
|
6,962 |
|
8,393 |
| Non-controlling interests |
|
3 |
|
33 |
| Total Equity |
|
6,965 |
|
8,426 |
| Debt |
|
21,301 |
|
21,689 |
| Other payables and
liabilities |
|
8,313 |
|
9,148 |
| Liabilities held for
distribution(*) |
|
— |
|
11,859 |
| Total Liabilities |
|
29,614 |
|
42,696 |
| TOTAL EQUITY AND
LIABILITIES |
|
36,579 |
|
51,122 |
|
Condensed Consolidated Statement of Cash Flows for the nine
months ended September 30, 2022 and 2021 |
|
(Unaudited, EU-IFRS) |
|
|
|
|
| ($ million) |
|
September 30, 2022 |
|
September 30, 2021 |
| CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE YEAR |
|
5,845 |
|
9,629 |
| Profit/(loss) from Continuing
Operations |
|
1,307 |
|
1,229 |
| Adjustment to reconcile
profit/(loss) from Continuing Operation to cash flows from/(used
in) operating activities from Continuing Operations |
|
(1,094) |
|
119 |
| CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
|
213 |
|
1,348 |
| CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
(262) |
| TOTAL |
|
213 |
|
1,086 |
| CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(2,741) |
|
(1,522) |
| CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
859 |
| TOTAL |
|
(2,741) |
|
(663) |
| CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS |
|
857 |
|
(1,314) |
| CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
(492) |
| TOTAL |
|
857 |
|
(1,806) |
| Translation exchange
differences |
|
(360) |
|
(332) |
| TOTAL CHANGE IN CASH
AND CASH EQUIVALENTS |
|
(2,031) |
|
(1,715) |
| Less: |
|
|
|
|
| CASH AND EQUIVALENTS AT END OF
THE PERIOD – INCLUDED WITHIN ASSETS HELD FOR DISTRIBUTION AT THE
END OF THE PERIOD |
|
— |
|
720 |
| CASH AND CASH
EQUIVALENTS AT END OF THE PERIOD |
|
3,814 |
|
7,194 |
Notes:
(*) The 2021 data have been re-presented following the
classification of the Iveco Group Business as Discontinued
Operations for the quarter ended September 30, 2021, as requested
by the IFRS 5 - Non-current assets held for sale and discontinued
operations.
- 20221108_PR_CNH_Industrial_Q3_Results_2022
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