2016 SECOND QUARTER RESULTS
CNH Industrial 2016 second quarter revenues of $6.8 billion, with operating margin of Industrial Activities increasing to 7% and net industrial debt reduced by $0.3 billion in the quarter
Financial results presented under U.S. GAAP(1)
- Reported net income was $129 million in the second quarter of 2016, with diluted EPS of $0.10
- Industrial Activities operating profit
(2)) and margin increased year-over-year, led by improvements in Agricultural Equipment, Commercial Vehicles, and Powertrain segments:
- Agricultural Equipment profitable in all regions, with best-in-class operating margin at 10.7%
- Commercial Vehicles solidly profitable, with 3.9% operating margin
- Net industrial debt (2) of $2.1 billion at June 30, 2016, $0.3 billion lower than March 31, 2016 from $0.6 billion in cash flow generated from Industrial Activities
- Full year Industrial Activities net sales and operating margin guidance reaffirmed; net industrial debt guidance at between $1.5 billion and $1.8 billion excluding the European Commission settlement (approximately $500 million)
Summary of Results
($ million except EPS)
($ million except EPS)
Six Months Ended June 30,
Three Months Ended June 30,
2016
2015
Change
2015
2016
Change
12,125
12,918
-6.1%
Revenues
6,753
6,958
-2.9%
(384)
145
-529
Net income (loss)
129
122
7
217
174
43
Adjusted net income(2)(3)
216
141
75
(0.28)
0.11
-0.39
Basic EPS ($)
0.10
0.01
0,09
(0.28)
0.11
-0.39
Diluted EPS ($)
0.10
0.01
0,09
0.16
0.13
0.03
Adjusted diluted EPS ($)
0.16
0.05
0.11
(1) 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.
(2) 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.
(3) Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between “Net income (loss)” and “Adjusted net income”.
(2) 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.
(3) Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between “Net income (loss)” and “Adjusted net income”.