CNH Industrial N.V. Reports Third Quarter 2024 Results
CNH Industrial reported a challenging Q3 2024 with consolidated revenue declining 22% to $4.65 billion due to lower industry demand. Net income decreased to $310 million with diluted EPS of $0.24, compared to $540 million and $0.40 EPS in Q3 2023. The company lowered its full-year 2024 guidance, citing weak end markets and elevated channel inventory levels. Agriculture segment net sales decreased 24% to $3.31 billion, while Construction segment net sales fell 28% to $687 million. The company now expects Agriculture segment net sales to decline 22-23% year-over-year and adjusted diluted EPS between $1.05 to $1.15.
CNH Industrial ha riportato un terzo trimestre 2024 difficile, con ricavi consolidati in calo del 22% a 4,65 miliardi di dollari a causa di una domanda inferiore nel settore. Il reddito netto è diminuito a 310 milioni di dollari, con un utile per azione diluito di 0,24 dollari, rispetto ai 540 milioni di dollari e 0,40 dollari di EPS nel terzo trimestre 2023. L'azienda ha ridotto le previsioni per l'intero anno 2024, citando mercati finali deboli e livelli elevati di inventario nei canali. Le vendite nette del settore agricolo sono diminuite del 24% a 3,31 miliardi di dollari, mentre le vendite nette del settore delle costruzioni sono scese del 28% a 687 milioni di dollari. L'azienda prevede ora che le vendite nette del settore agricolo caleranno del 22-23% su base annua e un EPS diluito rettificato compreso tra 1,05 e 1,15 dollari.
CNH Industrial informó de un tercer trimestre 2024 desafiante, con ingresos consolidados descendiendo un 22% a 4.65 mil millones de dólares debido a una menor demanda en la industria. Los ingresos netos disminuyeron a 310 millones de dólares, con un EPS diluido de 0.24, en comparación con 540 millones de dólares y un EPS de 0.40 en el tercer trimestre de 2023. La empresa redujo su guía para todo el año 2024, citando mercados finales débiles y niveles elevados de inventario en los canales. Las ventas netas del segmento agrícola cayeron un 24% a 3.31 mil millones de dólares, mientras que las ventas netas del segmento de construcción disminuyeron un 28% a 687 millones de dólares. La empresa ahora espera que las ventas netas del segmento agrícola disminuyan entre un 22% y un 23% en comparación interanual y un EPS diluido ajustado entre 1.05 y 1.15 dólares.
CNH 산업은 2024년 3분기에 어려운 실적을 보고하며, 산업 수요 감소로 인해 consolidated 수익이 22% 감소하여 46억 5천만 달러에 달했습니다. 순이익은 3억 1천만 달러로 감소했으며, 희석 주당순이익(EPS)은 0.24달러로, 2023년 3분기의 5억 4천만 달러 및 0.40달러 EPS와 비교됩니다. 회사는 약한 최종시장과 높은 채널 재고 수준을 이유로 2024년 전체 연간 가이드를 하향 조정했습니다. 농업 부문의 순매출은 24% 감소하여 33억 1천만 달러에 이르렀고, 건설 부문의 순매출은 28% 감소하여 6억 8,700만 달러에 그쳤습니다. 회사는 이제 농업 부문의 순매출이 전년 대비 22-23% 감소할 것으로 예상하며, 조정된 희석 EPS는 1.05달러에서 1.15달러 사이가 될 것으로 보입니다.
CNH Industrial a annoncé un troisième trimestre 2024 difficile, avec des revenus consolidés en baisse de 22 % à 4,65 milliards de dollars en raison d'une demande inférieure dans le secteur. Le revenu net a diminué pour atteindre 310 millions de dollars, avec un BPA dilué de 0,24 dollar, contre 540 millions de dollars et 0,40 dollar de BPA au troisième trimestre 2023. L'entreprise a abaissé ses prévisions pour l'année entière 2024, citant des marchés finaux faibles et des niveaux de stocks élevés. Les ventes nettes du secteur agricole ont baissé de 24 % à 3,31 milliards de dollars, tandis que les ventes nettes du secteur de la construction ont chuté de 28 % à 687 millions de dollars. L'entreprise s'attend désormais à ce que les ventes nettes du secteur agricole diminuent de 22 à 23 % d'une année sur l'autre et à ce que le BPA dilué ajusté se situe entre 1,05 et 1,15 dollar.
CNH Industrial berichtete über ein herausforderndes drittes Quartal 2024, in dem die konsolidierten Einnahmen um 22% auf 4,65 Milliarden Dollar sanken, bedingt durch eine geringere Nachfrage in der Branche. Der Nettogewinn fiel auf 310 Millionen Dollar, bei einem verwässerten EPS von 0,24 Dollar, verglichen mit 540 Millionen Dollar und einem EPS von 0,40 im dritten Quartal 2023. Das Unternehmen senkte seine Prognose für das gesamte Jahr 2024 und verwies auf schwache Endmärkte und hohe Lagerbestände. Die Nettoumsätze im Landwirtschaftssegment gingen um 24% auf 3,31 Milliarden Dollar zurück, während die Nettoumsätze im Bausegment um 28% auf 687 Millionen Dollar fielen. Das Unternehmen erwartet nun, dass die Nettoumsätze im Landwirtschaftssegment um 22-23% im Jahresvergleich zurückgehen und das ajustierte verwässerte EPS zwischen 1,05 und 1,15 Dollar liegen wird.
- Successful implementation of cost savings initiatives
- Improved purchasing and manufacturing costs
- Reduction in SG&A expenses
- Financial Services revenue increased 1% to $659 million
- Consolidated revenue declined 22% to $4.65 billion
- Net income decreased 43% to $310 million
- Diluted EPS dropped from $0.40 to $0.24
- Agriculture segment sales fell 24% to $3.31 billion
- Construction segment sales decreased 28% to $687 million
- Industrial Free Cash Flow guidance lowered to outflow of $100-300 million
- Elevated dealer inventories requiring lower production levels
Insights
The Q3 2024 results reveal significant challenges for CNH Industrial, with consolidated revenue declining
Key concerns include:
- Agriculture segment showing severe weakness with net sales down
24% and adjusted EBIT margin contracting 440 basis points to10.2% - Construction segment struggling with
28% lower sales and margin compression - Full-year guidance significantly lowered, with Agriculture sales now expected to decline
22-23% - Free cash flow guidance revised from positive
$700-900 million to negative$100-300 million
The deteriorating outlook stems from weak farmer demand globally, elevated dealer inventories requiring production cuts and challenging market conditions across all major regions. Management's cost-cutting initiatives are providing some offset but appear insufficient to maintain previous margin levels.
The market dynamics behind CNH's disappointing results reflect broader industry challenges:
- North American tractor demand declined
17-18% across segments, with combines down29% - European market showing severe weakness with tractor demand down
20% and combines plunging50% - South American weakness continues with tractors down
12% and combines down32%
The global agricultural equipment market is experiencing a cyclical downturn, with farmers delaying equipment purchases due to lower commodity prices and economic uncertainty. The inventory correction cycle appears to be in full swing, with dealers working to reduce stock levels. This suggests continued pressure on CNH's volumes and margins through at least early 2025.
Third quarter consolidated revenue declined
Third quarter diluted EPS at
Results reflect continued execution of cost savings initiatives partially offsetting the market headwinds
Full year 2024 guidance lowered to reflect continued weak end markets and elevated channel inventory levels
Basildon, UK - November 7, 2024 - CNH Industrial N.V. (NYSE: CNH) today reported results for the three months ended September 30, 2024, with net income of
“With the current challenging market conditions facing farmers across the globe, CNH is implementing decisions to advance our transformation journey. We have focused on making the Company’s operations more efficient and on being more responsive to our customers’ needs. But dealer inventories remain elevated and will require additional efforts to align with retail demand. As we further adjust production levels while making investments in technology and quality-improving processes, we are positioning ourselves for the long term and cementing our leading position in the industry. We look forward to sharing more details of our strategy at our investor day on May 8, 2025.”
Gerrit Marx, Chief Executive Officer
2024 Third Quarter Results
(all amounts $ million, comparison vs Q3 2023 - unless otherwise stated)
Please note that in this and in the following tables and commentary, prior periods have been revised to reflect an immaterial correction to the financial statements. See note 7 for further details and a reconciliation to previously reported amounts.
US-GAAP | ||||||||
Q3 2024 | Q3 2023(7) | Change | Change at c.c.(1) | |||||
Consolidated revenue | 4,654 | 5,986 | (22)% | (21)% | ||||
of which Net sales of Industrial Activities | 3,997 | 5,332 | (25)% | (24)% | ||||
Net income | 310 | 540 | (43)% | |||||
Diluted EPS $ | 0.24 | 0.40 | (0.16) | |||||
Cash flow provided (used) by operating activities | 791 | 232 | +559 | |||||
Cash and cash equivalents(2) | 1,801 | 4,322 | (2,521) | |||||
Gross profit margin of Industrial Activities | | | (220) bps |
NON-GAAP(3) | |||||||
Q3 2024 | Q3 2023(7) | Change | |||||
Adjusted EBIT of Industrial Activities | 336 | 627 | (46)% | ||||
Adjusted EBIT margin of Industrial Activities | | | (340) bps | ||||
Adjusted net income | 304 | 540 | (44)% | ||||
Adjusted diluted EPS $ | 0.24 | 0.40 | (0.16) | ||||
Free cash flow of Industrial Activities | (180) | (127) | (53) |
The decline in Net sales of Industrial Activities is mainly due to lower shipments on decreased industry demand and reduced dealer inventory requirements.
Adjusted net income was
Income tax expense was
Cash flow provided by operating activities in the quarter was
Agriculture | ||||||||
($ million) | Q3 2024 | Q3 2023(7) | Change | Change at c.c.(1) | ||||
Net sales | 3,310 | 4,384 | (24)% | (24)% | ||||
Gross profit margin | | | (290) bps | |||||
Adjusted EBIT | 336 | 642 | (48)% | |||||
Adjusted EBIT margin | | | (440) bps |
In North America, industry volume was down
Agriculture net sales decreased for the quarter by
Adjusted EBIT decreased to
Construction | ||||||||
($ million) | Q3 2024 | Q3 2023 | Change | Change at c.c.(1) | ||||
Net sales | 687 | 948 | (28)% | (26)% | ||||
Gross profit margin | | | +70 bps | |||||
Adjusted EBIT | 40 | 60 | (33)% | |||||
Adjusted EBIT margin | | | (50) bps |
Global industry volume for construction equipment increased
Construction net sales decreased for the quarter by
Adjusted EBIT decreased to
Financial Services | ||||||||
($ million) | Q3 2024 | Q3 2023 | Change | Change at c.c.(1) | ||||
Revenue | 659 | 653 | + | + | ||||
Net income | 78 | 86 | (9)% | |||||
Equity at quarter-end | 2,932 | 2,610 | +322 | |||||
Retail loan originations | 2,841 | 3,043 | (202) |
Revenues of Financial Services increased
Net income was
The managed portfolio (including unconsolidated joint ventures) was
At September 30, 2024, the receivables balance greater than 30 days past due as a percentage of receivables was down sequentially to
2024 Outlook
The Company’s forecast of continued weak industry retail demand in both the agriculture and construction equipment markets, coupled with elevated dealer inventories is requiring lower production levels. CNH will further reduce production output to manage channel inventory while continuing its efforts to improve through-cycle margins with its successful cost reduction programs. Due to the lower productions levels, the Company is revising its segment net sales and margins and its EPS results. In addition, because of the adverse net working capital impact from lowering production levels, the Company is lowering its Industrial Free Cash Flow forecast. The updated Agriculture adjusted EBIT margin and adjusted diluted EPS outlook also reflect the revision for highly inflationary accounting.
CNH is updating its 2024 outlook as follows:
- Agriculture segment net sales(5) down between
22% and23% year-over-year including currency translation effects (from down15% to20% previously) - Agriculture segment adjusted EBIT margin between
10.5% and11.5% (from between13.0% and14.0% previously); around 70 bps of the change relates to the accounting revision - Construction segment net sales(5) down between
21% and22% year-over-year including currency translation effects (from down15% to20% previously) - Construction segment adjusted EBIT margin between
5.0% and6.0% (unchanged) - Free Cash Flow of Industrial Activities(6) an outflow of between
$100 million to$300 million , down from the previous guidance of an inflow between$700 t o$900 million , mainly due to decreased equipment deliveries and the lower production levels - Adjusted diluted EPS(6) between
$1.05 t o$1.15 (from between$1.30 t o$1.40 previously); around$0.08 of the change relates to the accounting revision
CNH will host an Investor Day on Thursday, May 8, 2025, to review its strategic initiatives and targets. The event will be held at the New York Stock Exchange and will be webcast on the CNH website. Additional details will be provided closer to the event date.
Results for the Nine Months Ended September 30, 2024
(all amounts $ million, comparison vs YTD Q3 2023 - unless otherwise stated)
US-GAAP | ||||||||
YTD Q3 2024 | YTD Q3 2023(7) | Change | Change at c.c.(1) | |||||
Consolidated revenue | 14,960 | 17,895 | (16)% | (16)% | ||||
of which Net sales of Industrial Activities | 12,931 | 16,062 | (19)% | (19)% | ||||
Net income | 1,083 | 1,704 | (36)% | |||||
Diluted EPS $ | 0.85 | 1.25 | (0.40) | |||||
Cash flow provided (used) by operating activities | 276 | (608) | +884 | |||||
Cash and cash equivalents(2) | 1,801 | 4,322 | (2,521) | |||||
Gross profit margin of Industrial Activities | | | (210) bps |
NON-GAAP(3) | |||||||
YTD Q3 2024 | YTD Q3 2023(7) | Change | |||||
Adjusted EBIT of Industrial Activities | 1,210 | 1,972 | (39)% | ||||
Adjusted EBIT margin of Industrial Activities | | | (290) bps | ||||
Adjusted net income | 1,143 | 1,694 | (33)% | ||||
Adjusted diluted EPS $ | 0.90 | 1.24 | (0.34) | ||||
Free cash flow of Industrial Activities | (1,249) | (414) | (835) |
Agriculture | ||||||||
YTD Q3 2024 | YTD Q3 2023(7) | Change | Change at c.c.(1) | |||||
Net sales | 10,596 | 13,201 | (20)% | (19)% | ||||
Gross profit margin | | | (260) bps | |||||
Adjusted EBIT | 1,226 | 2,001 | (39)% | |||||
Adjusted EBIT margin | | | (360) bps |
Construction | ||||||||
YTD Q3 2024 | YTD Q3 2023 | Change | Change at c.c.(1) | |||||
Net sales | 2,335 | 2,861 | (18)% | (18)% | ||||
Gross profit margin | | | +90 bps | |||||
Adjusted EBIT | 151 | 176 | (14)% | |||||
Adjusted EBIT margin | | | +30 bps |
Financial Services | ||||||||
YTD Q3 2024 | YTD Q3 2023 | Change | Change at c.c.(1) | |||||
Revenue | 2,031 | 1,805 | + | + | ||||
Net income | 287 | 258 | + |
Notes
CNH reports quarterly and annual consolidated financial results under U.S. GAAP and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP.
- c.c. means at constant currency.
- Comparison vs. December 31, 2023
- This item is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Information” section of this press release for information regarding non-GAAP financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-GAAP financial measure and the most comparable GAAP financial measure.
- Certain financial information in this report has been presented by geographic area. Our geographical regions are: (a) North America; (b) Europe, Middle East and Africa (“EMEA”); (c) South America and (d) Asia Pacific. The geographic designations have the following meanings:
- North America: United States, Canada, and Mexico;
- Europe, Middle East, and Africa: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Russia, Türkiye, Uzbekistan, Pakistan, the African continent, and the Middle East;
- South America: Central and South America, and the Caribbean Islands; and
- Asia Pacific: Continental Asia (including the India subcontinent), Indonesia and Oceania.
- Net sales reflecting the exchange rate of 1.09 EUR/USD.
- The Company is unable to provide this reconciliation without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
- In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we have revised prior periods’ results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. CNH owns
37.5% of TürkTraktör ve Ziraat Makineleri A.S. (TTRAK.IS) and accounts for its ownership stake under the equity method. The functional currency of Türkiye-based TürkTraktör is the Turkish lira, and the Türkiye economy was deemed highly inflationary in 2022. CNH has determined that its translation criteria from Turkish lira into CNH’s functional currency of U.S. dollars resulted in an overstatement of CNH’s Equity in income of unconsolidated subsidiaries and affiliates by$96 million in 2023 and by$67 million in the first half of 2024. We have revised our GAAP and Non-GAAP results for all prior periods presented herein. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results.
Non-GAAP Financial Information
CNH monitors its operations through the use of several non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.
CNH’s non-GAAP financial measures are defined as follows:
- Adjusted EBIT of Industrial Activities under U.S. GAAP is defined as net income (loss) before the following items: Income taxes, Financial Services’ results, Industrial Activities’ interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
- Adjusted EBIT Margin of Industrial Activities: is computed by dividing Adjusted EBIT of Industrial Activities by Net Sales of Industrial Activities.
- Adjusted Net Income (Loss): is defined as net income (loss), less restructuring charges and non-recurring items, after tax.
- Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
- Adjusted Income Tax (Expense) Benefit: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits.
- Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates, less restructuring expenses and non-recurring items.
- Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities.
- Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations.
- Change excl. FX or Constant Currency: CNH discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations.
The tables attached to this press release provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.
Forward-looking Statements
All statements other than statements of historical fact contained in this press release including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward-looking statements also include statements regarding the future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”, or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.
Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics (such as the COVID-19 pandemic), terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; including targeted restructuring actions to optimize our cost structure and improve the efficiency of our operations; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.
Forward-looking statements are based upon assumptions relating to the factors described in this press release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside CNH’s control. CNH expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based.
Further information concerning CNH, including factors that potentially could materially affect its financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission ("SEC").
All future written and oral forward-looking statements by CNH or persons acting on the behalf of CNH are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.
Additional factors could cause actual results to differ from those expressed or implied by the forward-looking statements included in the Company’s filings with the SEC (including, but not limited to, the factors discussed in our 2023 Annual Report and subsequent quarterly reports).
Conference Call and Webcast
On November 8, at 11:30 a.m. EST (4:30 p.m. GMT / 5:30 p.m. CET), management will hold a conference call to present third quarter 2024 results to financial analysts and investors. The call can be followed live online at bit.ly/CNH_Q3_2024 and a recording will be available later on the Company’s website www.cnh.com.
CONTACTS
Media Inquiries – Laura Overall Tel +44 207 925 1964 or Rebecca Fabian Tel +1 312 515 2249
(Email mediarelations@cnh.com)
Investor Relations – Jason Omerza Tel +1 630 740 8079 or Federico Pavesi Tel +39 345 605 6218
(Email investor.relations@cnh.com)
CNH INDUSTRIAL N.V.
Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023
(Unaudited, U.S. GAAP)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
($ million, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
Revenues | ||||||||||||
Net sales | $ | 3,997 | $ | 5,332 | $ | 12,931 | $ | 16,062 | ||||
Finance, interest and other income | 657 | 654 | 2,029 | 1,833 | ||||||||
Total Revenues | 4,654 | 5,986 | 14,960 | 17,895 | ||||||||
Costs and Expenses | ||||||||||||
Cost of goods sold | 3,130 | 4,059 | 10,027 | 12,133 | ||||||||
Selling, general and administrative expenses | 426 | 462 | 1,298 | 1,385 | ||||||||
Research and development expenses | 221 | 266 | 686 | 766 | ||||||||
Restructuring expenses | 12 | 5 | 94 | 8 | ||||||||
Interest expense | 378 | 346 | 1,190 | 941 | ||||||||
Other, net | 127 | 186 | 449 | 536 | ||||||||
Total Costs and Expenses | 4,294 | 5,324 | 13,744 | 15,769 | ||||||||
Income (loss) of Consolidated Group before Income Taxes | 360 | 662 | 1,216 | 2,126 | ||||||||
Income tax (expense) benefit | (75) | (171) | (247) | (536) | ||||||||
Equity in income (loss) of unconsolidated subsidiaries and affiliates | 25 | 49 | 114 | 114 | ||||||||
Net Income (loss) | 310 | 540 | 1,083 | 1,704 | ||||||||
Net income attributable to noncontrolling interests | 4 | 3 | 10 | 11 | ||||||||
Net Income (loss) attributable to CNH Industrial N.V. | $ | 306 | $ | 537 | $ | 1,073 | $ | 1,693 | ||||
Earnings (loss) per share attributable to CNH Industrial N.V. | ||||||||||||
Basic | $ | 0.24 | $ | 0.40 | $ | 0.85 | $ | 1.27 | ||||
Diluted | $ | 0.24 | $ | 0.40 | $ | 0.85 | $ | 1.25 | ||||
Weighted average shares outstanding (in millions) | ||||||||||||
Basic | 1,251 | 1,332 | 1,255 | 1,337 | ||||||||
Diluted | 1,254 | 1,351 | 1,262 | 1,355 | ||||||||
Cash dividends declared per common share | $ | — | $ | — | $ | 0.470 | $ | 0.396 | ||||
These Consolidated Statements of Operations should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2023 included in the Annual Report on Form 10-K. These Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.
Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023
(Unaudited, U.S. GAAP)
($ million) | September 30, 2024 | December 31, 2023 | ||||
Assets | ||||||
Cash and cash equivalents | $ | 1,801 | $ | 4,322 | ||
Restricted cash | 649 | 723 | ||||
Financing receivables, net | 24,062 | 24,249 | ||||
Financial receivables from Iveco Group N.V. | 274 | 380 | ||||
Inventories, net | 5,930 | 5,545 | ||||
Property, plant and equipment, net and equipment under operating lease | 3,386 | 3,330 | ||||
Intangible assets, net | 4,866 | 4,906 | ||||
Other receivables and assets | 3,065 | 2,812 | ||||
Total Assets | $ | 44,033 | $ | 46,267 | ||
Liabilities and Equity | ||||||
Debt | $ | 27,300 | $ | 27,326 | ||
Financial payables to Iveco Group N.V. | 48 | 146 | ||||
Other payables and liabilities | 8,916 | 10,645 | ||||
Total Liabilities | 36,264 | 38,117 | ||||
Redeemable noncontrolling interest | 57 | 54 | ||||
Equity | 7,712 | 8,096 | ||||
Total Liabilities and Equity | $ | 44,033 | $ | 46,267 |
These Consolidated Balance Sheets should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the year ended December 31, 2023 included in the Annual Report on Form 10-K. These Consolidated Balance Sheets represent the consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023
(Unaudited, U.S. GAAP)
Nine Months Ended September 30, | ||||||
($ million) | 2024 | 2023 | ||||
Cash Flows from Operating Activities | ||||||
Net income (loss) | $ | 1,083 | $ | 1,704 | ||
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||||||
Depreciation and amortization expense excluding assets under operating lease | 315 | 276 | ||||
Depreciation and amortization expense of assets under operating lease | 139 | 140 | ||||
(Gain) loss from disposal of assets | 7 | 21 | ||||
Undistributed (income) loss of unconsolidated subsidiaries | (31) | (63) | ||||
Other non-cash items | 276 | 136 | ||||
Changes in operating assets and liabilities: | ||||||
Provisions | 52 | 618 | ||||
Deferred income taxes | (31) | (319) | ||||
Trade and financing receivables related to sales, net | 482 | (1,602) | ||||
Inventories, net | (256) | (1,443) | ||||
Trade payables | (1,217) | (101) | ||||
Other assets and liabilities | (543) | 25 | ||||
Net cash provided (used) by operating activities | 276 | (608) | ||||
Cash Flows from Investing Activities | ||||||
Additions to retail receivables | (5,917) | (5,689) | ||||
Collections of retail receivables | 4,840 | 4,308 | ||||
Proceeds from sale of assets, net of assets sold under operating leases | 1 | 1 | ||||
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease | (330) | (401) | ||||
Expenditures for assets under operating lease | (381) | (384) | ||||
Other, net | 10 | 123 | ||||
Net cash provided (used) by investing activities | (1,777) | (2,042) | ||||
Cash Flows from Financing Activities | ||||||
Net increase (decrease) in debt | 293 | 1,962 | ||||
Dividends paid | (600) | (531) | ||||
Other | (689) | (224) | ||||
Net cash provided (used) by financing activities | (996) | 1,207 | ||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (98) | (1) | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (2,595) | (1,444) | ||||
Cash, cash equivalents and restricted cash, beginning of year | 5,045 | 5,129 | ||||
Cash, cash equivalents and restricted cash, end of period | $ | 2,450 | $ | 3,685 |
These Consolidated Statements of Cash Flows should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the year ended December 31, 2023 included in the Annual Report on Form 10-K. These Consolidated Statements of Cash Flows represent the consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the Three Months Ended September 30, 2024 and 2023
(Unaudited, U.S. GAAP)
Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||||||||||||||||
($ million) | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | ||||||||||||||
Revenues | ||||||||||||||||||||||
Net sales | $ | 3,997 | $ | — | $ — | $ | 3,997 | $ | 5,332 | $ | — | $ — | $ | 5,332 | ||||||||
Finance, interest and other income | 27 | 659 | (29) | (2) | 657 | 49 | 653 | (48) | (2) | 654 | ||||||||||||
Total Revenues | 4,024 | 659 | (29) | 4,654 | 5,381 | 653 | (48) | 5,986 | ||||||||||||||
Costs and Expenses | ||||||||||||||||||||||
Cost of goods sold | 3,130 | — | — | 3,130 | 4,059 | — | — | 4,059 | ||||||||||||||
Selling, general and administrative expenses | 313 | 113 | — | 426 | 398 | 64 | — | 462 | ||||||||||||||
Research and development expenses | 221 | — | — | 221 | 266 | — | — | 266 | ||||||||||||||
Restructuring expenses | 12 | — | — | 12 | 5 | — | — | 5 | ||||||||||||||
Interest expense | 63 | 344 | (29) | (3) | 378 | 59 | 335 | (48) | (3) | 346 | ||||||||||||
Other, net | 11 | 116 | — | 127 | 47 | 139 | — | 186 | ||||||||||||||
Total Costs and Expenses | 3,750 | 573 | (29) | 4,294 | 4,834 | 538 | (48) | 5,324 | ||||||||||||||
Income (loss) of Consolidated Group before Income Taxes | 274 | 86 | — | 360 | 547 | 115 | — | 662 | ||||||||||||||
Income tax (expense) benefit | (62) | (13) | — | (75) | (137) | (34) | — | (171) | ||||||||||||||
Equity in income (loss) of unconsolidated subsidiaries and affiliates | 20 | 5 | — | 25 | 44 | 5 | — | 49 | ||||||||||||||
Net Income (loss) | $ | 232 | $ | 78 | $ — | $ | 310 | $ | 454 | $ | 86 | $ — | $ | 540 |
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) Elimination of Financial Services’ interest income earned from Industrial Activities.
(3) Elimination of Industrial Activities’ interest expense to Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the Nine Months Ended September 30, 2024 and 2023
(Unaudited, U.S. GAAP)
Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||
($ million) | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | ||||||||||||||
Revenues | ||||||||||||||||||||||
Net sales | $ | 12,931 | $ | — | $ — | $ | 12,931 | $ | 16,062 | $ | — | $ — | $ | 16,062 | ||||||||
Finance, interest and other income | 98 | 2,031 | (100) | (2) | 2,029 | 153 | 1,805 | (125) | (2) | 1,833 | ||||||||||||
Total Revenues | 13,029 | 2,031 | (100) | 14,960 | 16,215 | 1,805 | (125) | 17,895 | ||||||||||||||
Costs and Expenses | ||||||||||||||||||||||
Cost of goods sold | 10,027 | — | — | 10,027 | 12,133 | — | — | 12,133 | ||||||||||||||
Selling, general and administrative expenses | 1,029 | 269 | — | 1,298 | 1,219 | 166 | — | 1,385 | ||||||||||||||
Research and development expenses | 686 | — | — | 686 | 766 | — | — | 766 | ||||||||||||||
Restructuring expenses | 93 | 1 | — | 94 | 8 | — | — | 8 | ||||||||||||||
Interest expense | 212 | 1,078 | (100) | (3) | 1,190 | 189 | 877 | (125) | (3) | 941 | ||||||||||||
Other, net | 94 | 355 | — | 449 | 109 | 427 | — | 536 | ||||||||||||||
Total Costs and Expenses | 12,141 | 1,703 | (100) | 13,744 | 14,424 | 1,470 | (125) | 15,769 | ||||||||||||||
Income (loss) of Consolidated Group before Income Taxes | 888 | 328 | — | 1,216 | 1,791 | 335 | — | 2,126 | ||||||||||||||
Income tax (expense) benefit | (192) | (55) | — | (247) | (447) | (89) | — | (536) | ||||||||||||||
Equity in income (loss) of unconsolidated subsidiaries and affiliates | 100 | 14 | — | 114 | 102 | 12 | — | 114 | ||||||||||||||
Net Income (loss) | $ | 796 | $ | 287 | $ — | $ | 1,083 | $ | 1,446 | $ | 258 | $ — | $ | 1,704 |
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) Elimination of Financial Services’ interest income earned from Industrial Activities.
(3) Elimination of Industrial Activities’ interest expense to Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Balance Sheets as of September 30, 2024 and December 31, 2023
(Unaudited, U.S. GAAP)
September 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
($ million) | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,358 | $ | 443 | $ | — | $ | 1,801 | $ | 3,532 | $ | 790 | $ | — | $ | 4,322 | ||||||||
Restricted cash | 98 | 551 | — | 649 | 96 | 627 | — | 723 | ||||||||||||||||
Financing receivables, net | 267 | 24,316 | (521) | (2) | 24,062 | 393 | 24,539 | (683) | (2) | 24,249 | ||||||||||||||
Financial receivables from Iveco Group N.V. | 164 | 110 | — | 274 | 302 | 78 | — | 380 | ||||||||||||||||
Inventories, net | 5,886 | 44 | — | 5,930 | 5,522 | 23 | — | 5,545 | ||||||||||||||||
Property, plant and equipment, net and equipment on operating lease | 2,027 | 1,359 | — | 3,386 | 1,951 | 1,379 | — | 3,330 | ||||||||||||||||
Intangible assets, net | 4,703 | 163 | — | 4,866 | 4,739 | 167 | — | 4,906 | ||||||||||||||||
Other receivables and assets | 2,839 | 546 | (320) | (3) | 3,065 | 2,622 | 536 | (346) | (3) | 2,812 | ||||||||||||||
Total Assets | $ | 17,342 | $ | 27,532 | $ | (841) | $ | 44,033 | $ | 19,157 | $ | 28,139 | $ | (1,029) | $ | 46,267 | ||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Debt | $ | 4,675 | $ | 23,281 | $ | (656) | (2) | $ | 27,300 | $ | 4,433 | $ | 23,721 | $ | (828) | (2) | $ | 27,326 | ||||||
Financial payables to Iveco Group N.V. | 3 | 45 | — | 48 | 6 | 140 | — | 146 | ||||||||||||||||
Other payables and liabilities | 7,827 | 1,274 | (185) | (3) | 8,916 | 9,357 | 1,489 | (201) | (3) | 10,645 | ||||||||||||||
Total Liabilities | 12,505 | 24,600 | (841) | 36,264 | 13,796 | 25,350 | (1,029) | 38,117 | ||||||||||||||||
Redeemable noncontrolling interest | 57 | — | — | 57 | 54 | — | — | 54 | ||||||||||||||||
Equity | 4,780 | 2,932 | — | 7,712 | 5,307 | 2,789 | — | 8,096 | ||||||||||||||||
Total Liabilities and Equity | $ | 17,342 | $ | 27,532 | $ | (841) | $ | 44,033 | $ | 19,157 | $ | 28,139 | $ | (1,029) | $ | 46,267 |
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) This item includes the elimination of receivables/payables between Industrial Activities and Financial Services.
(3) This item primarily represents the reclassification of deferred tax assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023
(Unaudited, U.S. GAAP)
Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||
($ million) | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | Industrial Activities(1) | Financial Services | Eliminations | Consolidated | ||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||
Net income (loss) | $ | 796 | $ | 287 | $ — | $ | 1,083 | $ | 1,446 | $ | 258 | $ — | $ | 1,704 | ||||||||
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||||||||||||||||||||||
Depreciation and amortization expense, excluding assets under operating lease | 312 | 3 | — | 315 | 273 | 3 | — | 276 | ||||||||||||||
Depreciation and amortization expense of assets under operating lease | 6 | 133 | — | 139 | 6 | 134 | — | 140 | ||||||||||||||
(Gain) loss from disposal of assets, net | 7 | — | — | 7 | 21 | — | — | 21 | ||||||||||||||
Undistributed (income) loss of unconsolidated subsidiaries | 88 | (14) | (105) | (2) | (31) | (47) | (12) | (4) | (2) | (63) | ||||||||||||
Other non-cash items, net | 45 | 231 | — | 276 | 73 | 63 | — | 136 | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||
Provisions | 54 | (2) | — | 52 | 617 | 1 | — | 618 | ||||||||||||||
Deferred income taxes | 17 | (48) | — | (31) | (271) | (48) | — | (319) | ||||||||||||||
Trade and financing receivables related to sales, net | (81) | 565 | (2) | (3) | 482 | (25) | (1,582) | 5 | (3) | (1,602) | ||||||||||||
Inventories, net | (468) | 212 | — | (256) | (1,722) | 279 | — | (1,443) | ||||||||||||||
Trade payables | (1,154) | (65) | 2 | (3) | (1,217) | (56) | (40) | (5) | (3) | (101) | ||||||||||||
Other assets and liabilities | (507) | (36) | — | (543) | (174) | 199 | — | | 25 | |||||||||||||
Net cash provided (used) by operating activities | (885) | 1,266 | (105) | 276 | 141 | (745) | (4) | (608) | ||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||
Additions to retail receivables | — | (5,917) | — | (5,917) | — | (5,689) | — | (5,689) | ||||||||||||||
Collections of retail receivables | — | 4,840 | — | 4,840 | — | 4,308 | — | 4,308 | ||||||||||||||
Proceeds from sale of assets excluding assets sold under operating leases | 1 | — | — | 1 | 1 | — | — | 1 | ||||||||||||||
Expenditures for property, plant and equipment and intangible assets excluding assets under operating lease | (329) | (1) | — | (330) | (397) | (4) | — | (401) | ||||||||||||||
Expenditures for assets under operating lease | (27) | (354) | — | (381) | (26) | (358) | — | (384) | ||||||||||||||
Other, net | 206 | (195) | (1) | 10 | 460 | (441) | 104 | 123 | ||||||||||||||
Net cash provided (used) by investing activities | (149) | (1,627) | (1) | (1,777) | 38 | (2,184) | 104 | (2,042) | ||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||
Net increase (decrease) in debt | 226 | 67 | — | 293 | (777) | 2,739 | — | 1,962 | ||||||||||||||
Dividends paid | (600) | (105) | 105 | (2) | (600) | (531) | (4) | 4 | (2) | (531) | ||||||||||||
Other | (689) | (1) | 1 | (689) | (224) | 104 | (104) | (224) | ||||||||||||||
Net cash provided (used) by financing activities | (1,063) | (39) | 106 | (996) | (1,532) | 2,839 | (100) | 1,207 | ||||||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (75) | (23) | — | (98) | 1 | (2) | — | (1) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (2,172) | (423) | — | (2,595) | (1,352) | (92) | — | (1,444) | ||||||||||||||
Cash and cash equivalents, beginning of year | 3,628 | 1,417 | — | 5,045 | 3,960 | 1,169 | — | 5,129 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 1,456 | $ | 994 | $ — | $ | 2,450 | $ | 2,608 | $ | 1,077 | $ — | $ | 3,685 |
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided (used) by operating activities.
(3) This item includes the elimination of certain minor activities between Industrial Activities and Financial Services.
Other Supplemental Financial Information
(Unaudited)
Adjusted EBIT of Industrial Activities by Segment | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
($ million) | 2024 | 2023 | 2024 | 2023 | ||||||||
Industrial Activities segments | ||||||||||||
Agriculture | $ | 336 | $ | 642 | $ | 1,226 | $ | 2,001 | ||||
Construction | 40 | 60 | 151 | 176 | ||||||||
Unallocated items, eliminations and other | (40) | (75) | (167) | (205) | ||||||||
Total Adjusted EBIT of Industrial Activities | $ | 336 | $ | 627 | $ | 1,210 | $ | 1,972 |
Reconciliation of Consolidated Net Income under U.S. GAAP to Adjusted EBIT of Industrial Activities | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
($ million) | 2024 | 2023 | 2024 | 2023 | ||||||||
Net Income | $ | 310 | $ | 540 | $ | 1,083 | $ | 1,704 | ||||
Less: Consolidated income tax expense | (75) | (171) | (247) | (536) | ||||||||
Consolidated income before taxes | 385 | 711 | 1,330 | 2,240 | ||||||||
Less: Financial Services | ||||||||||||
Financial Services Net Income | 78 | 86 | 287 | 258 | ||||||||
Financial Services Income Taxes | 13 | 34 | 55 | 89 | ||||||||
Add back of the following Industrial Activities items: | ||||||||||||
Interest expense of Industrial Activities, net of Interest income and eliminations | 36 | 10 | 114 | 36 | ||||||||
Foreign exchange (gains) losses, net of Industrial Activities | 8 | 21 | 12 | 27 | ||||||||
Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities (1) | — | — | 2 | (2) | ||||||||
Adjustments for the following Industrial Activities items: | ||||||||||||
Restructuring expenses | 12 | 5 | 93 | 8 | ||||||||
Other discrete items(2) | (14) | — | 1 | 10 | ||||||||
Total Adjusted EBIT of Industrial Activities | $ | 336 | $ | 627 | $ | 1,210 | $ | 1,972 |
(1) In the three and nine months ended September 30, 2024 and 2023, this item includes the pre-tax gain of
(2) In the three months ended September 30, 2024 this item includes a gain of
Other Supplemental Financial Information
(Unaudited)
Reconciliation of Total (Debt) to Net Cash (Debt) under U.S. GAAP | ||||||||||||||||||
Consolidated | Industrial Activities | Financial Services | ||||||||||||||||
($ million) | September 30, 2024 | December 31, 2023 | September 30, 2024 | December 31, 2023 | September 30, 2024 | December 31, 2023 | ||||||||||||
Third party (debt) | $ | (27,300) | $ | (27,326) | $ | (4,412) | $ | (4,132) | $ | (22,888) | $ | (23,194) | ||||||
Intersegment notes payable | — | — | (263) | (301) | (393) | (527) | ||||||||||||
Financial payables to Iveco Group N.V. | (48) | (146) | (3) | (6) | (45) | (140) | ||||||||||||
Total (Debt)(1) | (27,348) | (27,472) | (4,678) | (4,439) | (23,326) | (23,861) | ||||||||||||
Cash and cash equivalents | 1,801 | 4,322 | 1,358 | 3,532 | 443 | 790 | ||||||||||||
Restricted cash | 649 | 723 | 98 | 96 | 551 | 627 | ||||||||||||
Intersegment notes receivable | — | — | 393 | 527 | 263 | 301 | ||||||||||||
Financial receivables from Iveco Group N.V. | 274 | 380 | 164 | 302 | 110 | 78 | ||||||||||||
Derivatives hedging debt | (2) | (41) | (22) | (34) | 20 | (7) | ||||||||||||
Net Cash (Debt)(2) | $ | (24,626) | $ | (22,088) | $ | (2,687) | $ | (16) | $ | (21,939) | $ | (22,072) |
(1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of
(2) The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was
Reconciliation of Net Cash Provided (Used) by Operating Activities to Free Cash Flow of Industrial Activities under U.S. GAAP | ||||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||
2024 | 2023 | ($ million) | 2024 | 2023 | ||||||||
$ | 276 | $ | (608) | Net cash provided (used) by Operating Activities | $ | 791 | $ | 232 | ||||
(1,161) | 749 | Cash flows from Operating Activities of Financial Services, net of eliminations | (839) | (141) | ||||||||
12 | 2 | Change in derivatives hedging debt of Industrial Activities and other | 13 | (2) | ||||||||
(27) | (26) | Investments in assets sold under operating lease assets of Industrial Activities | (16) | (17) | ||||||||
(329) | (397) | Investments in property, plant and equipment, and intangible assets of Industrial Activities | (123) | (176) | ||||||||
(20) | (134) | Other changes(1) | (6) | (23) | ||||||||
$ | (1,249) | $ | (414) | Free cash flow of Industrial Activities | $ | (180) | $ | (127) |
(1) This item primarily includes capital increases in intersegment investments and change in financial receivables.
Other Supplemental Financial Information
(Unaudited)
Reconciliation of Adjusted Net Income and Adjusted Income Tax (Expense) Benefit to Net Income (Loss) and Income Tax (Expense) Benefit and Calculation of Adjusted Diluted EPS and Adjusted ETR under U.S. GAAP | ||||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||
2024 | 2023 | ($ million) | 2024 | 2023 | ||||||||
$ | 1,083 | $ | 1,704 | Net income (loss) | $ | 310 | $ | 540 | ||||
77 | — | Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) | (8) | (1) | ||||||||
(17) | (10) | Adjustments impacting Income tax (expense) benefit (b) | 2 | 1 | ||||||||
$ | 1,143 | $ | 1,694 | Adjusted net income (loss) | $ | 304 | $ | 540 | ||||
$ | 1,133 | $ | 1,683 | Adjusted net income (loss) attributable to CNH Industrial N.V. | $ | 300 | $ | 537 | ||||
1,262 | 1,355 | Weighted average shares outstanding – diluted (million) | 1,254 | 1,351 | ||||||||
0.90 | 1.24 | Adjusted diluted EPS ($) | 0.24 | 0.40 | ||||||||
$ | 1,216 | $ | 2,126 | Income (loss) of Consolidated Group before income tax (expense) benefit | $ | 360 | $ | 662 | ||||
77 | — | Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) | (8) | (1) | ||||||||
$ | 1,293 | $ | 2,126 | Adjusted income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (A) | $ | 352 | $ | 661 | ||||
$ | (247) | $ | (536) | Income tax (expense) benefit | $ | (75) | $ | (171) | ||||
(17) | (10) | Adjustments impacting Income tax (expense) benefit (b) | 2 | 1 | ||||||||
$ | (264) | $ | (546) | Adjusted income tax (expense) benefit (B) | $ | (73) | $ | (170) | ||||
20.4 % | 25.7 % | Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) | 20.7 % | 25.7 % | ||||||||
a) Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates | ||||||||||||
$ | 94 | $ | 8 | Restructuring expenses | $ | 12 | $ | 5 | ||||
(18) | (18) | Pre-tax gain related to the 2021 modification of a healthcare plan in the U.S. | (6) | (6) | ||||||||
— | 17 | Loss on sale of Industrial Activities, Russia Operations | — | — | ||||||||
— | 6 | Loss on sale of Financial Services, Russia Operations | — | — | ||||||||
15 | — | Sale of certain non-core product lines | — | — | ||||||||
(14) | (13) | Investment fair value adjustments | (14) | — | ||||||||
$ | 77 | $ | — | Total | $ | (8) | $ | (1) | ||||
b) Adjustments impacting Income tax (expense) benefit | ||||||||||||
$ | (17) | $ | (10) | Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates | $ | 2 | $ | 1 | ||||
— | — | Adjustment to valuation allowances on deferred tax assets | — | — | ||||||||
$ | (17) | $ | (10) | Total | $ | 2 | $ | 1 |
Other Supplemental Financial Information
(Unaudited)
Revision of Prior Period Financial Statements: In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we have revised prior periods’ results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. CNH owns
The prior period impacts to the Company’s consolidated statements of operations and the related impacts to the statements of consolidated comprehensive income are as follows.
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||
($ million, except EPS) | Previously Reported | Revision Impacts | As Revised | Previously Reported | Revision Impacts | As Revised | ||||||||
Income (loss) of Consolidated Group before Income Taxes | $ | 662 | $ | — | $ | 662 | $ | 2,126 | $ | — | $ | 2,126 | ||
Income tax expense | (171) | — | (171) | (536) | — | (536) | ||||||||
Equity in income of unconsolidated subsidiaries and affiliates | 79 | (30) | 49 | 176 | (62) | 114 | ||||||||
Net income (loss) | 570 | (30) | 540 | 1,766 | (62) | 1,704 | ||||||||
Net income (loss) attributable to noncontrolling interests | 3 | — | 3 | 11 | — | 11 | ||||||||
Net income (loss) attributable to CNH Industrial N.V. | $ | 567 | $ | (30) | $ | 537 | $ | 1,755 | $ | (62) | $ | 1,693 | ||
Earnings per share attributable to common shareholders | ||||||||||||||
Basic | $ | 0.43 | $ | (0.03) | $ | 0.40 | $ | 1.31 | $ | (0.04) | $ | 1.27 | ||
Diluted | $ | 0.42 | $ | (0.02) | $ | 0.40 | $ | 1.30 | $ | (0.05) | $ | 1.25 |
The prior period impacts to the Company's Consolidated Balance Sheets are as follows:
December 31, 2023 | |||||||
($ million) | Previously Reported | Revision Impacts | As Revised | ||||
Assets | |||||||
Investments in unconsolidated subsidiaries and affiliates(1) | 563 | (84) | 479 | ||||
Total Assets | $ | 46,351 | $ | (84) | $ | 46,267 | |
Liabilities and Equity | |||||||
Total Liabilities | 38,117 | — | 38,117 | ||||
Redeemable equity | 54 | — | 54 | ||||
Retained earnings | 9,750 | (96) | 9,654 | ||||
Accumulated other comprehensive loss | (2,374) | 12 | (2,362) | ||||
Total Equity | 8,180 | (84) | 8,096 | ||||
Total Liabilities and Equity | $ | 46,351 | $ | (84) | $ | 46,267 |
(1) Included in Other Receivables and Assets on the Consolidated Balance Sheets.
Other Supplemental Financial Information
(Unaudited)
The prior period impacts to the Company's Consolidated Statement of Cash Flows are as follows:
Nine Months Ended September 30, 2023 | |||||||
($ million) | Previously Reported | Revision Impacts | As Revised | ||||
Cash Flows from Operating Activities | |||||||
Net Income (loss) | $ | 1,766 | $ | (62) | $ | 1,704 | |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | |||||||
Undistributed income of unconsolidated subsidiaries | (125) | 62 | (63) | ||||
Net cash provided (used) by operating activities | $ | (608) | $ | — | $ | (608) |
Other Supplemental Financial Information
(Unaudited)
($ million, except EPS) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | H1 2024 | |||||||||||||||
Equity in income of unconsolidated subsidiaries and affiliates | |||||||||||||||||||||||
As reported | $ | 33 | $ | 64 | $ | 79 | $ | 98 | $ | 274 | $ | 77 | $ | 79 | $ | 156 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
As revised | $ | 18 | $ | 47 | $ | 49 | $ | 64 | $ | 178 | $ | 44 | $ | 45 | $ | 89 | |||||||
Net income (loss) | |||||||||||||||||||||||
As reported | $ | 486 | $ | 710 | $ | 570 | $ | 617 | $ | 2,383 | $ | 402 | $ | 438 | $ | 840 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
As revised | $ | 471 | $ | 693 | $ | 540 | $ | 583 | $ | 2,287 | $ | 369 | $ | 404 | $ | 773 | |||||||
Net income (loss) attributable to CNH Industrial N.V. | |||||||||||||||||||||||
As reported | $ | 482 | $ | 706 | $ | 567 | $ | 616 | $ | 2,371 | $ | 401 | $ | 433 | $ | 834 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
As revised | $ | 467 | $ | 689 | $ | 537 | $ | 582 | $ | 2,275 | $ | 368 | $ | 399 | $ | 767 | |||||||
Earnings per share attributable to CNH Industrial N.V. - Basic | |||||||||||||||||||||||
As reported | $ | 0.36 | $ | 0.53 | $ | 0.43 | $ | 0.47 | $ | 1.78 | $ | 0.32 | $ | 0.34 | $ | 0.66 | |||||||
Revision impacts | (0.01) | (0.02) | (0.03) | (0.03) | (0.07) | (0.03) | (0.02) | (0.05) | |||||||||||||||
As revised | $ | 0.35 | $ | 0.51 | $ | 0.40 | $ | 0.44 | $ | 1.71 | $ | 0.29 | $ | 0.32 | $ | 0.61 | |||||||
Earnings per share attributable to CNH Industrial N.V. - Diluted | |||||||||||||||||||||||
As reported | $ | 0.35 | $ | 0.52 | $ | 0.42 | $ | 0.46 | $ | 1.76 | $ | 0.31 | $ | 0.34 | $ | 0.66 | |||||||
Revision impacts | (0.01) | (0.01) | (0.02) | (0.02) | (0.07) | (0.02) | (0.02) | (0.05) | |||||||||||||||
As revised | $ | 0.34 | $ | 0.51 | $ | 0.40 | $ | 0.44 | $ | 1.69 | $ | 0.29 | $ | 0.32 | $ | 0.61 | |||||||
Adjusted net income(1) | |||||||||||||||||||||||
As reported | $ | 475 | $ | 711 | $ | 570 | $ | 557 | $ | 2,313 | $ | 421 | $ | 485 | $ | 906 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
As revised | $ | 460 | $ | 694 | $ | 540 | $ | 523 | $ | 2,217 | $ | 388 | $ | 451 | $ | 839 | |||||||
Adjusted diluted EPS(1) | |||||||||||||||||||||||
As reported | $ | 0.35 | $ | 0.52 | $ | 0.42 | $ | 0.42 | $ | 1.70 | $ | 0.33 | $ | 0.38 | $ | 0.71 | |||||||
Revision impacts | (0.01) | (0.01) | (0.02) | (0.03) | (0.07) | (0.03) | (0.03) | (0.05) | |||||||||||||||
As revised | $ | 0.34 | $ | 0.51 | $ | 0.40 | $ | 0.39 | $ | 1.63 | $ | 0.30 | $ | 0.35 | $ | 0.66 | |||||||
Adjusted EBIT of Industrial Activities(1) | |||||||||||||||||||||||
As reported | $ | 555 | $ | 822 | $ | 657 | $ | 696 | $ | 2,730 | $ | 405 | $ | 536 | $ | 941 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
As revised | $ | 540 | $ | 805 | $ | 627 | $ | 662 | $ | 2,634 | $ | 372 | $ | 502 | $ | 874 | |||||||
Adjusted EBIT margin of Industrial Activities(1) | |||||||||||||||||||||||
As reported | | | | | | | | | |||||||||||||||
Revision impacts | (0.3)% | (0.3)% | (0.5)% | (0.6)% | (0.5)% | (0.8)% | (0.7)% | (0.7)% | |||||||||||||||
As revised | | | | | | | | |
Other Supplemental Financial Information
(Unaudited)
($ million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | H1 2024 | |||||||||||||||
Adjusted EBIT of Agriculture(1) | |||||||||||||||||||||||
As reported | $ | 570 | $ | 821 | $ | 672 | $ | 669 | $ | 2,732 | $ | 421 | $ | 536 | $ | 957 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
As revised | $ | 555 | $ | 804 | $ | 642 | $ | 635 | $ | 2,636 | $ | 388 | $ | 502 | $ | 890 | |||||||
Adjusted EBIT Margin of Agriculture(1) | |||||||||||||||||||||||
As reported | 14.5 % | 16.8 % | 15.3 % | 13.5 % | 15.1 % | 12.5 % | 13.7 % | 13.1 % | |||||||||||||||
Revision impacts | (0.4) % | (0.4) % | (0.7) % | (0.7) % | (0.6) % | (1.0) % | (0.9) % | (0.9) % | |||||||||||||||
As revised | 14.1 % | 16.4 % | 14.6 % | 12.8 % | 14.5 % | 11.5 % | 12.8 % | 12.2 % |
(1) This is a non-GAAP financial measure. See reconciliation to the most comparable U.S. GAAP financial measure below.
The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure:
($ million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | H1 2024 | |||||||||||||||
Net Income (loss) - as reported | $ | 486 | $ | 710 | $ | 570 | $ | 617 | $ | 2,383 | $ | 402 | $ | 438 | $ | 840 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
Net income (loss) - as revised | 471 | 693 | 540 | 583 | 2,287 | 369 | 404 | 773 | |||||||||||||||
Less: Consolidated income tax expense | (173) | (192) | (171) | (58) | (594) | (77) | (95) | (172) | |||||||||||||||
Consolidated income before taxes | 644 | 885 | 711 | 641 | 2,881 | 446 | 499 | 945 | |||||||||||||||
Less: Financial Services | |||||||||||||||||||||||
Financial Services Net Income | 78 | 94 | 86 | 113 | 371 | 118 | 91 | 209 | |||||||||||||||
Financial Services Income Taxes | 29 | 26 | 34 | 47 | 136 | 19 | 23 | 42 | |||||||||||||||
Add back of the following Industrial Activities items: | |||||||||||||||||||||||
Interest expense of Industrial Activities, net of Interest income and eliminations | 4 | 22 | 10 | 40 | 76 | 32 | 46 | 78 | |||||||||||||||
Foreign exchange (gains) losses, net of Industrial Activities | 6 | — | 21 | 78 | 105 | — | 4 | 4 | |||||||||||||||
Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities | (1) | (1) | — | 6 | 4 | 1 | 1 | 2 | |||||||||||||||
Adjustments for the following Industrial Activities items: | |||||||||||||||||||||||
Restructuring expenses | 1 | 2 | 5 | 57 | 65 | 30 | 51 | 81 | |||||||||||||||
Other discrete items | (7) | 17 | — | — | 10 | — | 15 | 15 | |||||||||||||||
Total Adjusted EBIT of Industrial Activities | $ | 540 | $ | 805 | $ | 627 | $ | 662 | $ | 2,634 | $ | 372 | $ | 502 | $ | 874 |
Other Supplemental Financial Information
(Unaudited)
The following table includes the reconciliation of adjusted net income to net income, the most comparable U.S. GAAP financial measure and a calculation of the revised adjusted diluted EPS:
($ million, except EPS) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | H1 2024 | |||||||||||||||
Net income (loss) - as reported | $ | 486 | $ | 710 | $ | 570 | $ | 617 | $ | 2,383 | $ | 402 | $ | 438 | $ | 840 | |||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
Net income (loss) - as revised | 471 | 693 | 540 | 583 | 2,287 | 369 | 404 | 773 | |||||||||||||||
Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates | (12) | 13 | (1) | 53 | 53 | 25 | 60 | 85 | |||||||||||||||
Adjustments impacting Income tax (expense) benefit | 1 | (12) | 1 | (113) | (123) | (6) | (13) | (19) | |||||||||||||||
Adjusted net income (loss) | 460 | 694 | 540 | 523 | 2,217 | 388 | 451 | 839 | |||||||||||||||
Adjusted net income (loss) attributable to CNH Industrial N.V. - as reported | 471 | 707 | 567 | 556 | 2,301 | 420 | 480 | 900 | |||||||||||||||
Revision impacts | (15) | (17) | (30) | (34) | (96) | (33) | (34) | (67) | |||||||||||||||
Adjusted net income (loss) attributable to CNH Industrial N.V. - as revised | $ | 456 | $ | 690 | $ | 537 | $ | 522 | $ | 2,205 | $ | 387 | $ | 446 | $ | 833 | |||||||
Weighted average shares outstanding – diluted (million) | 1,359 | 1,355 | 1,351 | 1,334 | 1,350 | 1,274 | 1,260 | 1,267 | |||||||||||||||
Adjusted diluted EPS ($) | $ | 0.34 | $ | 0.51 | $ | 0.40 | $ | 0.39 | $ | 1.63 | $ | 0.30 | $ | 0.35 | $ | 0.66 |
Attachment
FAQ
What were CNH Industrial's Q3 2024 earnings results?
How did CNH Industrial's Agriculture segment perform in Q3 2024?