2018 THIRD QUARTER RESULTS
CNH Industrial reported 2018 third quarter consolidated revenues of $6.7 billion, with net income up 285% to $231 million, or $0.16 per share. Net industrial debt(3)(4) at $2.0 billion
Financial results presented under U.S. GAAP(1)
- Industrial Activities net sales were flat compared to the third quarter of 2017 (up 4% on a constant currency basis), with an 18% improvement in Construction Equipment and a 4% increase in Agricultural Equipment offset by declines in Commercial Vehicles and Powertrain
- Adjusted EBIT(3)(4) of Industrial Activities increased 24% to $321 million, with a 5.1% margin (up 1.0 percentage points). Adjusted EBITDA(3)(4) of Industrial Activities was $591 million, with a 9.5% margin (up 1.1 percentage points)
- Adjusted net income(3)(4) was $222 million (a $71 million increase, or up 47%, compared to the third quarter of 2017), with adjusted diluted EPS(3)(4) of $0.16 (up $0.05 per share)
- Net industrial debt was $2.0 billion at September 30, 2018, $0.7 billion higher than at June 30, 2018, due to the seasonal increase in net working capital
- On August 8, S&P Global Ratings raised its long-term issuer credit ratings on both CNH Industrial N.V. and CNH Industrial Capital LLC to “BBB” from “BBB-” with a “stable” outlook
- In the quarter, CNH Industrial Capital LLC issued $500 million in principal amount of 4.200% Notes due 2024, and CNH Industrial Finance Europe S.A. issued €500 million in principal amount of 1.875% Notes due 2026
- In September, CNH Industrial was named as Industry Leader in Machinery and Electrical Equipment in the Dow Jones Sustainability Indices (DJSI), World and Europe, for the 8th consecutive year
- Full year guidance for net sales of Industrial Activities, adjusted diluted EPS and net industrial debt is confirmed, with adjusted diluted EPS expected now at the high end of the range
|
Summary of Results($ million except EPS)
|
||||||
|
Nine Months Ended September 30
|
Three Months Ended September 30
|
|||||
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
|
|
21,504
|
19,477
|
10.4%
|
Consolidated revenues
|
6,686
|
6,689
|
0.0%
|
|
841
|
342
|
499
|
Net income
|
231
|
60
|
171
|
|
823
|
461
|
362
|
Adjusted net income
|
222
|
151
|
71
|
|
0.60
|
0.24
|
0.36
|
Basic EPS ($)
|
0.16
|
0.04
|
0.12
|
|
0.60
|
0.24
|
0.36
|
Diluted EPS ($)
|
0.16
|
0.04
|
0.12
|
|
0.58
|
0.33
|
0.25
|
Adjusted diluted EPS ($)
|
0.16
|
0.11
|
0.05
|
(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.