2018 SECOND QUARTER RESULTS
CNH Industrial reported 2018 second quarter consolidated revenues up 15% to $8.0 billion, with net income up 73% to $408 million, or $0.29 per share. Net industrial debt(3)(4) decreased by 33% to $1.3 billion
Financial results presented under U.S. GAAP(1)(2)
- Industrial Activities net sales increased 16% (up 13% on a constant currency basis) primarily driven by double-digit improvements in the Agricultural and Construction Equipment segments
- Adjusted EBIT(3)(4) of Industrial Activities increased 44% to $571 million, with a 7.5% margin (up 1.4 percentage points). Adjusted EBITDA(3)(4) of Industrial Activities at $843 million, with an 11.1% margin
- Adjusted net income(3)(4) was $397 million (a $142 million increase, or up 56%, compared to the second quarter of 2017), with adjusted diluted EPS(3)(4) of $0.28 (up $0.10 per share)
- Net industrial debt was $1.3 billion at June 30, 2018, $0.6 billion lower than at March 31, 2018, as a result of a strong operating cash generation in the quarter (up 58% compared to the second quarter of 2017)
- Full year guidance updated as follows: net sales of Industrial Activities unchanged at approximately $28 billion, adjusted diluted EPS increased to between $0.67 and $0.71 per share. Net industrial debt guidance improved to between $0.7 billion and $0.9 billion
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CNH INDUSTRIAL
Summary of Results($ million except EPS) |
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Six Months Ended June 30,
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Three Months Ended June 30,
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2018
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2017
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Change
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2018
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2017
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Change
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|
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14,818
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12,788
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15.9%
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Consolidated revenues
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8,045
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7,003
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14.9%
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610
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282
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328
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Net income
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408
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236
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172
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|
601
|
310
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291
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Adjusted net income
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397
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255
|
142
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0.43
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0.20
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0.23
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Basic EPS ($)
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0.29
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0.17
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0.12
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0.43
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0.20
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0.23
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Diluted EPS ($)
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0.29
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0.17
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0.12
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0.43
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0.22
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0.21
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Adjusted diluted EPS ($)
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0.28
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0.18
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0.10
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(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) On January 1, 2018, the Company adopted, on a retrospective basis, updated FASB accounting standards for revenue recognition (ASC 606), retirement benefits accounting (ASU 2017-07) and cash flow presentation (ASU 2016-18) and began using Adjusted EBIT and Adjusted EBITDA. Please refer to “About this Press Release” section of this press release for additional information.
(3) This item is a non-GAAP financial measure. Refer to the “About this Press Release” and “Non-GAAP Financial Information” sections of this press release for information regarding non-GAAP financial measures.
(4) 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.