CNH Industrial announces its exit from Russia
London, April 19, 2023
CNH Industrial announces today the divestiture of its business activities in Russia for a total consideration of approximately $60 million. This follows the Company’s announcement in March 2022 that it was suspending supplies to this market. Up until today, the payment of employee salaries and other administrative expenses in Russia have been duly guaranteed.
Until March of 2022, the Company operated a corporate office in the Moscow region through which it managed the import and distribution of its products in Russia, regional business activities and commercial financing. Its industrial footprint included manufacturing sites for agricultural equipment and implements and construction equipment, and a parts depot. These sites employed approximately 200 employees.
For the fiscal year ending 2021, the last full year of operations, the Russian operations generated revenue of approximately $380 million, representing 2% of the Company’s consolidated revenue in 2021. During the quarter ended March 31, 2022, CNH Industrial recorded charges of $71 million related to assets write down, financial receivable allowances, and a valuation allowance against deferred tax assets. The Company estimates that it will take additional pre-tax charges of approximately $20 million in connection with the divestitures.
We wish to acknowledge our former employees for their years of dedicated service.