2019 THIRD QUARTER RESULTS
CNH Industrial reports third quarter consolidated revenues of $6.4 billion, net income of $643 million and adjusted net income(2)(3) of $221 million ($0.16 per share). Net debt of Industrial Activities(2)(3) at $2.4 billion
Financial results presented under U.S. GAAP(1)
- Industrial Activities net sales were $5.9 billion, down 6% compared to the third quarter of 2018 (down 3% on a constant currency basis), as lower sales volume and negative currency translation offset positive price realization
- Adjusted EBIT(2)(3) of Industrial Activities was $284 million, equivalent to a 4.8% margin, down 30 basis points compared to the third quarter of 2018. Adjusted EBITDA(2)(3) of Industrial Activities was $523 million, representing an 8.9% margin
- Reported net income of $643 million includes a material discrete tax benefit. Adjusted net income was $221 million in the third quarter of 2019, in line with the third quarter of 2018, benefiting from lower interest expense and a lower adjusted effective tax rate(2)(3)
- Net debt of Industrial Activities at September 30, 2019 was $2.4 billion, up by $0.9 billion from June 30, 2019, due to an increase in net working capital
- During the quarter, CNH Industrial continued corporate planning activities in view of the future separation of the Off-Highway and On-Highway businesses announced on September 3
- During the quarter, CNH Industrial acquired AgDNA, a leader in Farm Management Information Systems, and entered into a strategic and exclusive Heavy-Duty Truck partnership with Nikola Corporation, a U.S.-based leader in fuel cell truck technology
- CNH Industrial recently announced the acquisition of the Australian agricultural tillage and crop implement manufacturer K-Line Ag, and the acquisition of ATI, Inc., a global manufacturer of rubber track systems for high horsepower tractors and combine harvesters, in an effort to strengthen its strategic position and to drive industry consolidation in the agricultural market. In addition, CNH Industrial has agreed the sale of its Truckline
- Full year guidance updated as follows: net sales of Industrial Activities expected now between $26.5 billion-$27 billion with confirmed adjusted diluted EPS of $0.84-$0.88. Net debt of Industrial Activities of $0.6 billion-$0.4 billion mainly reflecting the M&A activity announced since September 3
|
CNH INDUSTRIAL
Summary of Results($ million except EPS) |
||||||||
|
NineMonths Ended September30,
|
Three Months Ended September30,
|
|||||||
|
2019
|
2018
|
$ Change
|
% Change
|
2019
|
2018
|
$ Change
|
% Change
|
|
|
20,384
|
21,504
|
-1,120
|
-5.2
|
Consolidated revenues
|
6,360
|
6,686
|
-326
|
-4.9
|
|
1,334
|
841
|
493
|
58.6
|
Net income
|
643
|
231
|
412
|
178.4
|
|
899
|
823
|
76
|
9.2
|
Adjusted net income
|
221
|
222
|
-1
|
-0.5
|
|
0.97
|
0.60
|
0.37
|
61.7
|
Basic EPS ($)
|
0.47
|
0.16
|
0.31
|
193.8
|
|
0.97
|
0.60
|
0.37
|
61.7
|
Diluted EPS ($)
|
0.47
|
0.16
|
0.31
|
193.8
|
|
0.64
|
0.58
|
0.06
|
10.3
|
Adjusted diluted EPS ($)
|
0.16
|
0.16
|
-
|
-
|
(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.