CNH Industrial: Periodic Report on $1 Billion Buyback Program
- CNH Industrial successfully concluded the €400 million component of its $1 billion share buyback program, demonstrating a commitment to returning value to shareholders.
- The total invested amount in the First Component is approximately €389,133,049.72 ($423,804,057.13) for a total of 39,171,237 common shares purchased, indicating a significant investment in the company's own shares.
- The Company held 76,177,984 common shares in Treasury as of December 29, 2023, potentially impacting the available shares for trading in the market.
- None.
Insights
The completion of the €400 million portion of CNH Industrial's $1 billion share buyback program represents a significant capital allocation decision that can have various implications on the company's financial structure and shareholder value. The repurchase of 39,171,237 common shares at an average price range between €10.495 and €11.0619 per share suggests a strategic move to optimize the company's capital structure, potentially signaling management's confidence in the intrinsic value of the company exceeding the current market price.
Furthermore, the share buyback could lead to earnings per share (EPS) accretion, as the reduction in the number of outstanding shares typically improves this key financial metric, assuming stable net income levels. This could positively influence investor sentiment and the stock's valuation multiples. However, it is also critical to consider the opportunity cost of the buyback, as the funds used for share repurchases are not being invested in growth opportunities or debt reduction.
In the context of the broader industry, such buyback programs are common among firms seeking to return capital to shareholders. The timing and scale of CNH Industrial's buyback, particularly in an environment where interest rates and capital costs may be rising, warrant close scrutiny to assess the balance between shareholder returns and long-term strategic investments.
From a market perspective, CNH Industrial's share buyback program could be interpreted as a positive signal to the market, potentially indicating undervaluation. It is also a reflection of the company's liquidity and balance sheet strength, allowing for such a substantial capital return to shareholders. The market typically reacts favorably to buyback announcements, as they often lead to stock price appreciation.
However, the market's response can also be contingent on the prevailing economic conditions and sector performance. For instance, if the agricultural and construction equipment sectors are facing headwinds due to macroeconomic factors such as trade tensions or commodity price fluctuations, the impact of the buyback on the stock price might be muted. Additionally, the market will also consider the company's future growth prospects and whether the repurchased shares were bought at a perceived discount to their future value.
Investors and analysts will likely monitor subsequent earnings reports to gauge the impact of the buyback on the company's financials, including EPS growth and return on equity. They will also be looking at how the buyback affects the company's strategic flexibility moving forward, especially in terms of pursuing acquisitions, research and development and other capital expenditures.
CNH Industrial: Periodic Report on
Basildon, December 29, 2023
CNH Industrial N.V. (NYSE: CNHI / MI: CNHI) announces the conclusion of the
| Date | Number of common shares purchased | Average price per share excluding fees | Consideration excluding fees | Consideration (*) excluding fees |
| (€) | (€) | ($) | ||
| December 18, 2023 | 877,153 | 10.4953 | 9,205,983.88 | 10,051,093.20 |
| December 19, 2023 | 930,605 | 10.6276 | 9,890,097.70 | 10,841,525.10 |
| December 20, 2023 | 1,002,704 | 10.8167 | 10,845,948.36 | 11,869,805.88 |
| December 21, 2023 | 2,000,000 | 10.7669 | 21,533,800.00 | 23,650,572.54 |
| December 22, 2023 | 1,743,811 | 10.7790 | 18,831,414.99 | 20,757,868.74 |
| December 27, 2023 | 1,662,204 | 10.8578 | 18,047,878.59 | 19,969,977.66 |
| December 28, 2023 | 1,439,276 | 10.9079 | 15,699,478.68 | 17,448,400.61 |
| December 29, 2023 | 1,276,097 | 11.0619 | 14,116,057.40 | 15,598,243.43 |
| 10,931,850 | - | 118,170,659.60 | 130,187,487.16 |
(*) All translations determined from Euro to US Dollar at the exchange rate reported by the European Central Bank on the date of each purchase
As of December 29, 2023, the Company held 76,177,984 common shares in Treasury.
Details of the transactions described in the table above, including the regulated markets where the purchases were made, are available on the Company’s corporate website under the Buyback Programs section at the following address: cnhindustrial.com/BuyBack.
CNH Industrial (NYSE: CNHI / MI: CNHI) is a world-class equipment and services company. Driven by its purpose of Breaking New Ground, which centers on Innovation, Sustainability and Productivity, the Company provides the strategic direction, R&D capabilities, and investments that enable the success of its global and regional Brands. Globally, Case IH and New Holland Agriculture supply 360° agriculture applications from machines to implements and the digital technologies that enhance them; and CASE and New Holland Construction Equipment deliver a full lineup of construction products that make the industry more productive. The Company’s regionally focused Brands include: STEYR, for agricultural tractors; Raven, a leader in digital agriculture, precision technology and the development of autonomous systems; Hemisphere, a leading designer and manufacturer of high-precision satellite-based positioning and heading technologies; Flexi-Coil, specializing in tillage and seeding systems; Miller, manufacturing application equipment; Kongskilde, providing tillage, seeding and hay & forage implements; and Eurocomach, producing a wide range of mini and midi excavators for the construction sector, including electric solutions.
Across a history spanning over two centuries, CNH Industrial has always been a pioneer in its sectors and continues to passionately innovate and drive customer efficiency and success. As a truly global company, CNH Industrial’s 40,000+ employees form part of a diverse and inclusive workplace, focused on empowering customers to grow, and build, a better world.
For more information and the latest financial and sustainability reports visit: cnhindustrial.com
For news from CNH Industrial and its Brands visit: media.cnhindustrial.com
Contacts:
Media Relations
Email: mediarelations@cnhind.com
Investor Relations
Email: investor.relations@cnhind.com
Attachment
FAQ
What is the conclusion of CNH Industrial's share buyback program?
How many common shares did CNH Industrial hold in Treasury as of December 29, 2023?
What is CNH Industrial's purpose?
What are the global Brands of CNH Industrial?
What is the history of CNH Industrial?
