2017 THIRD QUARTER RESULTS

CNH Industrial 2017 third quarter revenues up 15.3% to $6.6 billion, net income at $57 million, with adjusted net income(2)(3) more than doubling to $148 million or $0.11 per share. Net industrial debt(2)(3) at $2.6 billion

Financial results presented under U.S. GAAP(1)

  • Industrial Activities’ revenues up 16% (up 12% on a constant currency basis) led by solid improvements in all segments
  • Operating profit(2)(3) of Industrial Activities increased 41% to $351 million, with an operating margin of 5.5%, with positive performance in Agricultural Equipment, Construction Equipment and Powertrain
  • Adjusted net income increased to $148 million in the third quarter of 2017, with adjusted diluted EPS(2)(3) of $0.11
  • Net industrial debt was $2.6 billion at September 30, 2017, up $0.5 billion compared to June 30, 2017, due to the typical seasonal increase in net working capital
  • In the quarter, the Company repurchased a total of €800 million in principal amount of 6.250% Notes due 2018 and 2.750% Notes due 2019 issued by CNH Industrial
  • Finance Europe S.A., and issued €650 million in principal amount of 1.750% Notes due 2025
  • Today the Company announced the early redemption of all of the outstanding $600 million in principal amount of CNH Industrial Capital LLC 3⅞% Notes due July 2018
  • On October 24, Fitch Ratings initiated coverage of CNH Industrial N.V. and assigned its longterm issuer default rating of “BBB-” with stable outlook; CNH Industrial securities will be eligible for the main investment grade indices in the U.S. market
  • Full year guidance for Industrial Activities revenues increased to $25.0 to $25.5 billion and Adjusted diluted EPS increased to $0.44 to $0.46; year-end net industrial debt increased to $1.5 to $1.7 billion as a result of the strengthening euro to the U.S. dollar

 

Summary of Results($ million except EPS)
Nine Months Ended September 30
Three Months Ended September 30
2017
2016
Change
2017
2016
Change
19,259
17,874
7.7%
Revenues
6,630
5,749
15.3%
353
(345)
698
Net income (loss)
57
39
18
472
285
187
Adjusted net income
148
68
80
0.25
(0.25)
0.50
Basic EPS ($)
0.04
0.03
0.01
0.25
(0.25)
0.50
Diluted EPS ($)
0.04
0.03
0.01
0.34
0.21
0.13
Adjusted diluted EPS ($)
0.11
0.05
0.06

 

 

(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 the non-GAAP financial measure and the most comparable GAAP financial measure.