BASILDON, United Kingdom, Oct. 30,
2014 /PRNewswire/ --
FINANCIAL RESULTS UNDER U.S. GAAP(*) (**)
- Third quarter revenues totaled $7.7 billion
($8.2 billion in Q3 2013). Net sales
of Industrial Activities were $7.4 billion in Q3 2014
($7.9 billion in Q3 2013).
- Operating profit of Industrial Activities for the quarter
was $522 million, down 12.9%
compared to Q3 2013, with operating margin at 7.1%
(down 0.5 p.p.).
- Net income was $162 million in Q3 2014, or
$0.13 per share. Net income before restructuring and
other exceptional items was $214 million (or
$0.16 per share), down $63 million
compared to Q3 2013.
- Net industrial debt was $3.9 billion at
September 30, 2014 ($3.7 billion at June 30,
2014). Available liquidity totaled
$7.9 billion ($7.7
billion at June 30, 2014),
after the issuance of a €700 million bond ($881
million) due September
2021.
- Full year guidance confirmed.
(*)
|
Beginning with the
filing with the U.S. Securities and Exchange Commission ("SEC") of
its annual report on Form 20-F for the fiscal year ended December
31, 2013, prepared in accordance with U.S. GAAP, CNH Industrial
reports quarterly and annual financial results both under U.S. GAAP
for SEC reporting purposes and under IFRS for European listing
purposes and Dutch law requirements. Financial statements under
both sets of accounting principles use the U.S. dollar as the
reporting currency. In addition, as disclosed in the Form 20-F, CNH
Industrial has expanded its reportable segments from three
(Agricultural and Construction Equipment inclusive of its financial
services activities, Trucks and Commercial Vehicles inclusive of
its financial services activities, and Powertrain) to five
(Agricultural Equipment, Construction Equipment, Commercial
Vehicles, Powertrain and Financial Services). The following
tables and comments on the financial results of the Company and by
segments are prepared in accordance with U.S. GAAP. Financial
results under IFRS are shown in a subsequent section of this press
release. Prior period results under IFRS, prepared in euro, have
been consistently recast into U.S. dollars. A summary
outlining the Company's transition to U.S. GAAP and the U.S. dollar
as the reporting currency is available on the Company's
website, www.cnhindustrial.com.
|
(**)
|
Refer to the Non-GAAP
Financial Information section of this press release for information
regarding Non-GAAP financial measures.
|
|
CNH
INDUSTRIAL Summary
Income Statement ($ million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
24,190
|
24,546
|
-1.5%
|
Revenues
|
7,739
|
8,166
|
-5.2%
|
|
|
621
|
774
|
-153
|
Net income
|
162
|
275
|
-113
|
|
|
773
|
830
|
-57
|
Net income before
restructuring and other exceptional items
|
214
|
277
|
-63
|
|
|
627
|
617
|
10
|
Net income
attributable to CNH Industrial N.V.
|
173
|
223
|
-50
|
|
|
0.46
|
0.50
|
-0.04
|
Basic EPS
($)
|
0.13
|
0.18
|
-0.05
|
|
|
0.57
|
0.55
|
0.02
|
Basic EPS before
restructuring and other exceptional items ($)
|
0.16
|
0.18
|
-0.02
|
|
|
0.46
|
0.50
|
-0.04
|
Diluted EPS
($)
|
0.13
|
0.18
|
-0.05
|
|
|
|
|
|
|
|
|
CNH
INDUSTRIAL Income
Statement Data of Industrial Activities(1)
($ million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
23,180
|
23,665
|
-2.0%
|
Net sales of
Industrial Activities
|
7,403
|
7,872
|
-6.0%
|
|
|
1,612
|
1,706
|
-94
|
Operating profit of
Industrial Activities (2)
|
522
|
599
|
-77
|
|
|
7.0
|
7.2
|
-0.2 p.p.
|
Operating margin of
Industrial Activities (%)
|
7.1
|
7.6
|
-0.5 p.p
|
|
|
(1) Industrial Activities
represent the activities carried out by the four industrial
segments Agricultural Equipment, Construction Equipment, Commercial
Vehicles, and Powertrain, as well as corporate
functions.
(2) Operating profit of
Industrial Activities is a non-GAAP measure and is defined as net
sales less cost of goods sold, selling, general and administrative
expenses, and research and development
expenses.
|
|
CNH Industrial N.V. (NYSE:CNHI / MI:CNHI) today announced
consolidated revenues of $7,739
million for the third quarter of 2014, down 5.2% compared to
Q3 2013. Net sales of Industrial Activities were
$7,403 million in Q3 2014, down 6.0%
from Q3 2013. Net sales increases in Construction Equipment and
Powertrain were more than offset by declines in Agricultural
Equipment, due to challenging trading conditions in the
agricultural row crop sector, particularly in NAFTA and LATAM
regions, and Commercial Vehicles.
CNH
INDUSTRIAL Revenues by
Segment ($ million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
%
change
|
|
2014
|
2013
|
%
change
|
|
|
11,801
|
12,621
|
-6.5
|
Agricultural
Equipment
|
3,659
|
4,138
|
-11.6
|
|
|
2,546
|
2,426
|
4.9
|
Construction
Equipment
|
841
|
733
|
14.7
|
|
|
7,534
|
7,727
|
-2.5
|
Commercial
Vehicles
|
2,522
|
2,688
|
-6.2
|
|
|
3,476
|
3,081
|
12.8
|
Powertrain
|
1,025
|
1,007
|
1.8
|
|
|
(2,177)
|
(2,190)
|
-
|
Eliminations and
other
|
(644)
|
(694)
|
-
|
|
|
23,180
|
23,665
|
-2.0
|
Total Industrial
Activities
|
7,403
|
7,872
|
-6.0
|
|
|
1,363
|
1,247
|
9.3
|
Financial
Services
|
455
|
416
|
9.4
|
|
|
(353)
|
(366)
|
-
|
Eliminations and
other
|
(119)
|
(122)
|
-
|
|
|
24,190
|
24,546
|
-1.5
|
Total
|
7,739
|
8,166
|
-5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit of Industrial Activities was
$522 million in Q3 2014, a 12.9%
decrease compared to Q3 2013, with an operating margin for the
third quarter of 7.1%, down 0.5 p.p. from Q3 2013. Operating profit
improved in Construction Equipment, Powertrain and Commercial
Vehicles in the quarter. Construction Equipment benefitted from
improved trading conditions in the NAFTA and EMEA regions, positive
price realization, and actions from the Company's Efficiency
Program. Positive performance in EMEA for Commercial Vehicles was
partially offset by the negative effects of challenging trading
conditions in LATAM, due to a significant decline in market demand.
In Agricultural Equipment, lower unit volume with a negative
product mix in the row crop sector, and increased manufacturing
costs as a result of cuts in production run rates, were partially
offset by positive net price realization during the quarter.
CNH
INDUSTRIAL Operating
profit/(loss) by Segment (1) ($
million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
1,529
|
1,696
|
-167
|
Agricultural
Equipment
|
433
|
582
|
-149
|
|
|
70
|
(44)
|
114
|
Construction
Equipment
|
39
|
(31)
|
70
|
|
|
(71)
|
(24)
|
-47
|
Commercial
Vehicles
|
20
|
15
|
5
|
|
|
157
|
118
|
39
|
Powertrain
|
59
|
50
|
9
|
|
|
(73)
|
(40)
|
-33
|
Eliminations and
other
|
(29)
|
(17)
|
-12
|
|
|
1,612
|
1,706
|
-94
|
Total Industrial
Activities
|
522
|
599
|
-77
|
|
|
407
|
399
|
8
|
Financial
Services
|
121
|
117
|
4
|
|
|
(255)
|
(242)
|
-13
|
Eliminations and
other
|
(81)
|
(85)
|
4
|
|
|
1,764
|
1,863
|
-99
|
Total
|
562
|
631
|
-69
|
|
|
(1)
Operating profit of Industrial Activities (a non-GAAP measure)
is defined as net sales less cost of goods sold, selling, general
and administrative expenses, and research and development
expenses. Operating profit of Financial Services (a non-GAAP
measure) is defined as revenues less selling, general and
administrative expenses, interest expense and certain other
operating expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
CNH
INDUSTRIAL Reconciliation of Operating Profit to Net
Income ($ million)
|
|
|
|
YTD (01.01 to
09.30)
|
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
|
|
2014
|
2013
|
|
|
1,764
|
1,863
|
Total Operating
Profit
|
|
562
|
631
|
|
|
98
|
32
|
Restructuring
expenses
|
|
56
|
3
|
|
|
449
|
382
|
Interest expenses of
Industrial Activities, net of interest income and
eliminations
|
|
150
|
128
|
|
|
(254)
|
(222)
|
Other, net
|
|
(97)
|
(65)
|
|
|
963
|
1,227
|
Income before
income taxes and equity in income of unconsolidated subsidiaries
and affiliates
|
|
259
|
435
|
|
|
408
|
541
|
Income
taxes
|
|
107
|
182
|
|
|
66
|
88
|
Equity in income of
unconsolidated subsidiaries and affiliates
|
|
10
|
22
|
|
|
621
|
774
|
Net
income
|
|
162
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expenses totaled $56
million, compared to $3
million for Q3 2013, as part of the Efficiency Program
announced in July 2014. Agricultural
Equipment recorded $28 million
primarily due to the closure of a 60% owned joint venture in
China. Commercial Vehicles
recorded $22 million mainly due to
actions to reduce selling, general and administrative ("SG&A")
expenses and business support costs as a result of the transition
to CNH Industrial's regional structure. Construction Equipment
recorded $6 million mainly due to the
re-positioning of the Case and New Holland brand offerings and the
consequent alignment of their dealer networks.
Interest expense, net totaled $150
million for the quarter, $22
million higher than Q3 2013, primarily due to an increase in
average net industrial debt, partially offset by more favorable
interest rates.
Other, net was a charge of $97
million for the quarter ($65
million for Q3 2013). The increase of $32 million was mainly due to higher foreign
exchange losses, which included an $8
million pre-tax charge for the re-measurement of Venezuelan
assets denominated in bolivares.
Income taxes totaled $107
million, representing an effective tax rate of 41.3% for the
quarter, substantially in line with Q3 2013 (effective tax rate of
41.8%). The Company's effective tax rate for the year is still
expected to be in the range of 40% to 44% due to the inability to
recognize the tax benefit of losses in certain jurisdictions.
Equity in income of unconsolidated subsidiaries and
affiliates totaled $10 million
for the quarter ($22 million for Q3
2013). The decrease was mainly due to lower results from APAC joint
ventures, primarily as a result of lower industry volumes in
China.
Net income of Financial Services was $75 million for the quarter compared to
$65 million for Q3 2013, mainly as a
result of higher average portfolio value and lower income taxes,
partially offset by higher provisions for credit losses.
Consolidated net income was $162
million for the quarter ($275
million for Q3 2013). Net income attributable to CNH
Industrial N.V. was $173 million
for the quarter ($223 million for Q3
2013), or $0.13 per share
($0.18 for Q3 2013), and was
positively impacted by losses attributed to minority interest
holder related to the closure of the joint venture in China. Net income before restructuring and
other exceptional items (a non-GAAP measure) was $214 million for the quarter ($277 million in Q3 2013).
Net industrial debt of $3.9
billion at September 30, 2014
was $0.2 billion higher than at
June 30, 2014, as a slowdown of
activity, mainly in Agricultural Equipment and Commercial Vehicles,
resulted in a $0.6 billion reduction
in payables at the end of the quarter. Currency translation
differences on euro-denominated debt positively affected net
industrial debt by $0.4 billion.
Available liquidity at September
30, 2014 was $7.9 billion,
inclusive of $2.5 billion in undrawn
committed facilities ($2.3 billion at
June 30, 2014), compared to
$7.7 billion at June 30, 2014. The increase is mainly
attributable to the proceeds from the €700 million bond issued by
CNH Industrial Finance Europe S.A., due September 2021, with a fixed rate coupon of
2.875%, partially offset by cash utilized in operating activities
and by negative currency translation differences.
2014 U.S. GAAP Guidance
Despite challenging trading condition in the agricultural row
crop sector, particularly in NAFTA, and the generally depressed
markets in LATAM in agricultural equipment and commercial vehicles,
CNH Industrial is confirming its 2014 U.S. GAAP guidance as
follows:
- Net sales of Industrial Activities at approximately
$32 billion;
- Operating profit of Industrial Activities between $2.1 billion and $2.2 billion, with margin
between 6.5% and 6.9%;
- Net industrial debt between $2.2 billion
and $2.1 billion at the end of 2014;
- Consolidated net income before restructuring between
$0.9 billion and $1.0 billion, with
earnings per share before restructuring between $0.69 and $0.74.
2015 U.S. GAAP Outlook
Full year 2014 operating profit to be held in 2015. Improved
profitability in Commercial Vehicles and Construction Equipment,
coupled with productivity actions and structural cost improvement
measures from the Company's Efficiency Program are expected to
offset projected challenging conditions in the row crop sector of
the agricultural business.
Segment Commentary
CNH Industrial expects that trading conditions in Agricultural
Equipment will remain challenging through 2015, largely
concentrated in the harvesting and high horsepower row crop sectors
in the NAFTA and LATAM regions. The Company has already begun to
take actions in 2014 to align its cost structure and its inventory
positions to protect segment margins in this portion of the
business. Despite the headwinds in the row crop sector of the
agricultural industry as a result of declines in commodity prices,
the Company is forecasting that reduced input costs will continue
to benefit the livestock and dairy sectors of the agricultural
industry through 2015.
In the commercial vehicle segment, the EMEA and LATAM regions
are forecast to be flat in unit volume overall, and for trading
conditions to remain challenging. Actions taken in the Company's
Efficiency Program to reduce its cost structure, as well as
improved manufacturing productivity and reduced Euro VI related
launch costs will contribute to improved year over year segment
profitability in 2015.
In Construction Equipment, the Company expects to continue to
improve profitability in 2015 on the back of improved trading
conditions in NAFTA and EMEA, and the full year realization of the
Company Efficiency Program begun in 2014.
Powertrain activities expect the headwind of reduced volume
demand in Agricultural Equipment will be offset by increased third
party sales and manufacturing productivity improvements.
CNH
INDUSTRIAL Key Balance
Sheet data ($ million)
|
|
|
|
|
|
09.30.2014
|
06.30.2014
|
12.31.2013
|
|
|
Total
assets
|
53,873
|
55,542
|
53,843
|
|
|
Total
equity
|
5,266
|
5,144
|
4,955
|
|
|
Equity attributable
to CNH Industrial N.V.
|
5,226
|
5,088
|
4,901
|
|
|
|
|
|
|
|
|
|
|
|
CNH
INDUSTRIAL Net debt
($ million)
|
|
|
|
|
|
09.30.2014
|
06.30.2014
|
12.31.2013
|
|
|
Total debt
(1)
|
(30,833)
|
(31,339)
|
(29,866)
|
|
|
-
Asset-backed financing
|
(13,781)
|
(14,312)
|
(14,712)
|
|
|
- Other
debt
|
(17,052)
|
(17,027)
|
(15,154)
|
|
|
Derivative hedging
debt
|
32
|
41
|
44
|
|
|
Cash and cash
equivalents
|
4,615
|
4,615
|
5,567
|
|
|
Restricted
cash
|
802
|
751
|
922
|
|
|
Net
debt
|
(25,384)
|
(25,932)
|
(23,333)
|
|
|
Industrial
Activities
|
(3,935)
|
(3,692)
|
(2,214)
|
|
|
Financial
Services
|
(21,449)
|
(22,240)
|
(21,119)
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
5,417
|
5,366
|
6,489
|
|
|
Undrawn committed
facilities
|
2,458
|
2,285
|
2,224
|
|
|
Available
liquidity
|
7,875
|
7,651
|
8,713
|
|
|
(1) Inclusive of adjustments to
fair value hedges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNH
INDUSTRIAL Change in
Net Industrial Debt ($
million)
|
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
(2,214)
|
(1,961)
|
Net industrial
(debt)/cash at beginning of period
|
(3,692)
|
(3,049)
|
|
|
621
|
774
|
Net income
|
162
|
275
|
|
|
552
|
508
|
Amortization and
depreciation (*)
|
194
|
162
|
|
|
(36)
|
165
|
Changes in provisions
and similar, and items related to assets sold under buy-back
commitments, and assets under operating lease
|
(123)
|
(74)
|
|
|
(2,481)
|
(1,664)
|
Change in working
capital
|
(737)
|
(371)
|
|
|
(588)
|
(644)
|
Investments in
property, plant and equipment, and intangible assets (*)
|
(246)
|
(244)
|
|
|
77
|
(27)
|
Other
changes
|
53
|
53
|
|
|
(1,855)
|
(888)
|
Net industrial
cash flow
|
(697)
|
(199)
|
|
|
(366)
|
(370)
|
Capital increases and
dividends
|
7
|
(2)
|
|
|
500
|
(143)
|
Currency translation
differences
|
447
|
(112)
|
|
|
(1,721)
|
(1,401)
|
Change in Net
industrial debt
|
(243)
|
(313)
|
|
|
(3,935)
|
(3,362)
|
Net industrial
(debt)/cash at end of period
|
(3,935)
|
(3,362)
|
|
|
(*) Excluding
assets sold under buy-back commitments and assets under operating
lease.
|
|
|
|
|
|
|
|
|
|
|
Agricultural Equipment
AGRICULTURAL
EQUIPMENT Net sales
& Operating profit/(loss) ($
million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
11,801
|
12,621
|
-6.5%
|
Net sales
|
3,659
|
4,138
|
-11.6%
|
|
|
1,529
|
1,696
|
-167
|
Operating
profit
|
433
|
582
|
-149
|
|
|
13.0
|
13.4
|
-0.4 p.p.
|
Operating margin
(%)
|
11.8
|
14.1
|
-2.3 p.p.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales for Agricultural Equipment were $3,659 million for the quarter, down 11.6% from
Q3 2013, driven by lower volumes and less favorable product mix,
partially offset by positive net pricing. The geographic
distribution of net sales for the period was 46% NAFTA, 27% EMEA,
15% LATAM and 12% APAC.
Worldwide agricultural equipment industry unit sales were down
during the third quarter of 2014, with global demand for tractors
down 1% and combines down 22%. In NAFTA, tractor demand was up 10%,
largely concentrated in the lower horsepower segment (under 140 hp)
on improved demand in the dairy & livestock and hay &
forage sectors, while combines were down 23%. In EMEA, tractor and
combine markets were down 7% and 24%, respectively. LATAM tractor
and combine markets decreased 10% and 16%, respectively. In APAC,
demand decreased 2% for tractors and 23% for combines.
Agricultural Equipment's worldwide market share performance was
flat for tractors with decreased market share in NAFTA and EMEA
offset by an increase in APAC. Combine market share decreased in
all markets except for LATAM.
Production of Agricultural Equipment was 10% above retail sales
for the quarter as lower retail sales across all regions more than
offset the slowdown in production (down 6% vs. last year and down
12% vs. Q2 2014). The Company expects to significantly
under-produce retail demand in the last quarter of the year.
Agricultural Equipment's operating profit was
$433 million for the quarter
($582 million in Q3 2013). Operating
margin was 11.8% (14.1% in Q3 2013), with negative volume and mix
(primarily for high horsepower tractors and combines in NAFTA) and
increased manufacturing costs being partially offset by net price
realization.
In September the Company announced the definitive agreement to
acquire substantially all of the assets of precision spraying
equipment manufacturer Miller-St. Nazianz, Inc. These assets will
become part of the New Holland brand, providing a strong platform
to grow the self-propelled sprayer business on a global scale. The
agreement is subject to customary closing conditions, with the goal
of closing before the end of the year.
Construction Equipment
CONSTRUCTION
EQUIPMENT Net sales
& Operating profit/(loss) ($
million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
2,546
|
2,426
|
4.9%
|
Net sales
|
841
|
733
|
14.7%
|
|
|
70
|
(44)
|
114
|
Operating
profit/(loss)
|
39
|
(31)
|
70
|
|
|
2.7
|
(1.8)
|
4.5 p.p.
|
Operating margin
(%)
|
4.6
|
(4.2)
|
8.8 p.p.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales for Construction Equipment were $841 million for the quarter, up 14.7%, with
increases in all regions, especially NAFTA. The geographic
distribution of net sales for the period was 44% NAFTA, 19% EMEA,
28% LATAM and 9% APAC.
In the third quarter of 2014, heavy equipment industry sales
were down 13% and light equipment industry sales were up 3%
compared to the prior year. For both heavy and light equipment, the
industry saw continued softening of demand in LATAM and APAC, which
was partially offset by recovering markets in NAFTA and EMEA.
Construction Equipment's worldwide market share performance was
flat overall for light equipment, with heavy equipment market share
increasing in all regions, especially NAFTA and LATAM.
Production levels were 9% above retail sales, as industry demand
continues to recover.
Construction Equipment reported operating profit of
$39 million compared to an operating
loss of $31 million for Q3 2013, with
an operating margin of 4.6%, as a result of pricing strength in
NAFTA, LATAM and APAC, positive volume and mix in all regions and
continued containment actions in SG&A and research and
development ("R&D") expenses as a result of the realization of
the Company's brand re-alignment initiatives and global excavators
strategy.
Commercial Vehicles
COMMERCIAL
VEHICLES Net sales &
Operating profit/(loss) ($
million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
7,534
|
7,727
|
-2.5%
|
Net sales
|
2,522
|
2,688
|
-6.2%
|
|
|
(71)
|
(24)
|
-47
|
Operating
profit/(loss)
|
20
|
15
|
5
|
|
|
(0.9)
|
(0.3)
|
-0.6 p.p.
|
Operating margin
(%)
|
0.8
|
0.6
|
0.2 p.p.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales for Commercial Vehicles were
$2,522 million, a decrease of 6.2%
compared to Q3 2013. Increased net sales in EMEA driven by light
and heavy vehicles, despite lower deliveries in the bus business
due to the transition to Euro VI applications, were more than
offset by a significant decrease in LATAM (-29%), as a result of
continued overall weak economic conditions. Production adjustments
in LATAM continued during the quarter to allow for dealer
inventories to be aligned to market demand. The geographic
distribution of net sales for the period was 72% EMEA, 19% LATAM
and 9% APAC.
Commercial Vehicles delivered a total of 28,897 vehicles
(including buses and specialty vehicles), representing an 8.2%
decrease from Q3 2013. Volumes were higher in the light segment
(+2.6%) as a result of the launch of the new Daily, while volumes
declined in the heavy (-10.3%) and medium (-29.6%) segments driven
by weak trading conditions in LATAM and pre-Euro VI demand in H2
2013 in EMEA. Commercial Vehicles deliveries increased 7.7% in
EMEA, while APAC was down 14% and LATAM 45% (with Brazil down approximately 48% and Argentina down approximately 36%).
The European truck market (GVW ≥3.5 tons) grew by 4.3% compared
to Q3 2013 to approximately 158,400 units. Light vehicles (GVW
3.5-6 tons) increased by 11.1%, while medium vehicles market (GVW
6.1-15.9 tons) and heavy vehicles market (GVW >16 tons)
decreased by 15.2% and 1.8%, respectively.
The Company's market share in the European truck market (GVW
≥3.5 tons) is estimated to be 10.2%, a decrease of 0.5 p.p. In the
light segment, the share is estimated to be 10.0% (down 1.0 p.p.),
mainly due to the transition to the new Daily, launched in June and
the first results of which appeared in the registrations of
September. In the medium segment, the Company's market share
increased by 2.2 p.p. to 26.6% and in the heavy segment was up 0.2
p.p. to 7.1%.
In LATAM, new truck registrations (GVW ≥3.5 tons), at 47,200
units, were down 22.5% compared to Q3 2013. The largest decrease
was registered in Venezuela, down
79.5%, while Argentina was down
33.6% and Brazil decreased by
15.0%.
The Company's share of the LATAM market (GVW ≥3.5 tons) was down
1.4 p.p. from Q3 2013 to 9.8%. Market share increased by 1.0 p.p.
and 0.5 p.p. respectively in light and medium segments, while
market share declined 2.9 p.p. in the heavy segment.
In APAC, registrations decreased by 7.6% and market share was
down 0.2 p.p. compared to Q3 2013.
In EMEA, dealer inventories of new vehicles remained stable
compared to year-end 2013, representing coverage of approximately
three months of expected retail activity.
Commercial Vehicles closed the third quarter with an
operating profit of $20
million compared to an operating profit of $15 million for Q3 2013. Positive volume in EMEA,
primarily in light and heavy trucks, favorable pricing exceeding
product content cost increase, savings on R&D expenses, and
lower SG&A expenses, were partially offset by losses in LATAM,
including negative fixed-cost absorption in manufacturing plants,
due to continued depressed markets across the region and
inventories realignment actions, particularly in Brazil.
Powertrain
POWERTRAIN Net sales & Operating
profit/(loss) ($ million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
3,476
|
3,081
|
12.8%
|
Net sales
|
1,025
|
1,007
|
1.8%
|
|
|
157
|
118
|
39
|
Operating
profit
|
59
|
50
|
9
|
|
|
4.5
|
3.8
|
0.7 p.p.
|
Operating margin
(%)
|
5.8
|
5.0
|
0.8 p.p.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales for Powertrain were $1,025 million in the third quarter, an increase
of 1.8% compared to Q3 2013, primarily attributable to higher
volumes. Sales to external customers accounted for 39% of total net
sales (33% in the same period in 2013).
During the quarter, Powertrain sold a total of 133,304 engines,
an increase of 3.2% compared to Q3 2013. By major customer, 25% of
engines were supplied to Agricultural Equipment, 25% to Commercial
Vehicles, 5% to Construction Equipment and the remaining 45% to
external customers (units sold to third parties were up 20%
compared to Q3 2013). Additionally, Powertrain delivered 14,112
transmissions and 37,514 axles, an increase of 8% and 9%,
respectively, compared to the same period in 2013.
Powertrain closed the third quarter with an operating
profit of $59 million, up
$9 million from the same period in
2013, with an operating margin of 5.8% (5.0% for Q3 2013). The
improvement was mainly due to the increase in volumes and related
industrial efficiencies.
Financial Services
FINANCIAL
SERVICES Revenues &
Net income ($ million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
1,363
|
1,247
|
9.3%
|
Revenues
|
455
|
416
|
9.4%
|
|
|
266
|
220
|
46
|
Net income
|
75
|
65
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services reported third quarter revenues
of $455 million, an increase of 9.4%
compared to Q3 2013, primarily driven by the increase in the
average value of the portfolio.
Financial Services reported net income of $75 million, up $10
million over the same period in 2013, mainly due to higher
average portfolio value and lower income taxes, partially offset by
higher provisions for credit losses.
Retail loan originations in the quarter were $2.8 billion, flat compared to Q3 2013. The
managed portfolio (including joint ventures) of $28.1 billion (of which retail was 64% and
wholesale 36%) was down $1.0 billion
compared to June 30, 2014, flat
excluding currency impact.
FINANCIAL RESULTS UNDER IFRS (*)
(*)
|
Refer to the Non-GAAP
Financial Information section of this press release for information
regarding Non-GAAP financial measures. Prior period results
prepared in euro have been consistently recast into U.S.
dollar.
|
|
|
CNH
INDUSTRIAL Summary
Income Statement under IFRS ($
million)
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
24,469
|
24,816
|
-1.4%
|
Consolidated net
revenues
|
7,817
|
8,236
|
-5.1%
|
|
|
1,881
|
2,040
|
-159
|
Consolidated trading
profit
|
570
|
674
|
-104
|
|
|
7.7
|
8.2
|
-0.5 p.p
|
Trading margin
(%)
|
7.3
|
8.2
|
-0.9 p.p
|
|
|
1,224
|
1,590
|
-366
|
Profit before
taxes
|
326
|
533
|
-207
|
|
|
783
|
984
|
-201
|
Profit
|
234
|
329
|
-95
|
|
|
789
|
811
|
-22
|
Profit attributable
to CNH Industrial N.V.
|
245
|
273
|
-28
|
|
|
0.58
|
0.66
|
-0.08
|
Basic EPS
($)
|
0.18
|
0.22
|
-0.04
|
|
|
0.58
|
0.66
|
-0.08
|
Diluted EPS
($)
|
0.18
|
0.22
|
-0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On an IFRS basis, CNH Industrial posted net revenues of
$7,817 million for the third quarter
of 2014, a decrease of 5.1% from the same quarter in 2013.
Consolidated trading profit was $570 million for the third quarter, down
$104 million or 15.4% from Q3 2013.
Trading margin for the third quarter decreased 0.9 p.p. to 7.3%.
Agricultural Equipment trading profit was $398 million
($545 million in Q3 2013), with a
trading margin of 10.9% (13.2% for Q3 2013). Construction Equipment
reported a trading profit of $29
million (trading loss of $40
million in Q3 2013) with a trading margin of 3.4%.
Commercial Vehicles closed the third quarter with a trading profit
of $2 million (trading profit of
$25 million for Q3 2013, with a trading margin of 0.9%).
Powertrain reported a trading profit of $52
million, compared to $47
million for Q3 2013, with a trading margin of 5.1% (4.7% for
Q3 2013). Financial Services trading profit was $117 million ($115
million in the same period in 2013).
Profit before taxes totaled $326
million ($533 million for Q3
2013), down $207 million. The decline
was mainly due to the $104 million
reduction in trading profit, the $50
million increase in net unusual expenses mainly associated
with higher restructuring costs, as part of the Efficiency Program
announced in July 2014, and increased
net financial expenses. The increase of $40
million in net financial expenses is attributable to higher
average net industrial debt, higher foreign exchange losses, which
included an $8 million pre-tax charge
for the re-measurement of Venezuelan assets, partially offset by
more favorable interest rates. Results from investments declined by
$13 million to $12 million, due to reduced results from APAC
joint ventures.
Income taxes for the third quarter totaled
$92 million ($204 million for Q3 2013), representing an
effective tax rate of 28.2% for the quarter. The decrease from the
38.3% Q3 2013 effective tax rate is mainly due to recognizing
deferred tax assets in certain jurisdictions. The Company's 2014
forecast effective tax rate on an IFRS-basis is still expected to
be in the range of 36% to 40%.
Consolidated net profit was $234
million, or $0.18 per
share, compared to $329 million, or
$0.22 per share for Q3 2013.
Net industrial debt of $4.1
billion at September 30, 2014
was $0.3 billion higher than at
June 30, 2014.
CNH
INDUSTRIAL Revenues by
Segment under IFRS ($
million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
%
change
|
|
2014
|
2013
|
%
change
|
|
|
11,801
|
12,621
|
-6.5
|
Agricultural
Equipment
|
3,659
|
4,138
|
-11.6
|
|
|
2,546
|
2,426
|
4.9
|
Construction
Equipment
|
841
|
733
|
14.7
|
|
|
7,675
|
7,846
|
-2.2
|
Commercial
Vehicles
|
2,565
|
2,723
|
-5.8
|
|
|
3,484
|
3,090
|
12.8
|
Powertrain
|
1,027
|
1,010
|
1.7
|
|
|
(2,177)
|
(2,190)
|
-
|
Eliminations and
other
|
(644)
|
(694)
|
-
|
|
|
23,329
|
23,793
|
-2.0
|
Total Industrial
Activities
|
7,448
|
7,910
|
-5.8
|
|
|
1,541
|
1,427
|
8.0
|
Financial
Services
|
504
|
462
|
9.1
|
|
|
(401)
|
(404)
|
-
|
Eliminations and
other
|
(135)
|
(136)
|
-
|
|
|
24,469
|
24,816
|
-1.4
|
Total
|
7,817
|
8,236
|
-5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNH
INDUSTRIAL Trading
profit/(loss) by Segment under IFRS ($
million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
1,451
|
1,618
|
-167
|
Agricultural
Equipment
|
398
|
545
|
-147
|
|
|
64
|
(56)
|
120
|
Construction
Equipment
|
29
|
(40)
|
69
|
|
|
(111)
|
10
|
-121
|
Commercial
Vehicles
|
2
|
25
|
-23
|
|
|
147
|
115
|
32
|
Powertrain
|
52
|
47
|
5
|
|
|
(63)
|
(41)
|
-22
|
Eliminations and
other
|
(28)
|
(18)
|
-10
|
|
|
1,488
|
1,646
|
-158
|
Total Industrial
Activities
|
453
|
559
|
-106
|
|
|
393
|
394
|
-1
|
Financial
Services
|
117
|
115
|
2
|
|
|
-
|
-
|
-
|
Eliminations and
other
|
-
|
-
|
-
|
|
|
1,881
|
2,040
|
-159
|
Total
|
570
|
674
|
-104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNH
INDUSTRIAL Key Balance
Sheet data under IFRS ($ million)
|
|
|
|
|
|
09.30.2014
|
06.30.2014
|
12.31.2013
|
|
|
Total
assets
|
56,366
|
58,139
|
56,462
|
|
|
Total
equity
|
7,902
|
7,905
|
7,662
|
|
|
Equity attributable
to CNH Industrial N.V.
|
7,859
|
7,846
|
7,591
|
|
|
Net debt
|
(25,599)
|
(26,052)
|
(23,290)
|
|
|
Of which Net
industrial debt
|
(4,109)
|
(3,804)
|
(2,195)
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Net income under U.S. GAAP to
Profit under IFRS:
CNH
Industrial Net income
reconciliation ($ million)
|
|
|
|
|
YTD (01.01 to
09.30)
|
|
3rd
Quarter
|
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
621
|
774
|
Net income under
U.S. GAAP
|
162
|
275
|
|
|
|
|
Adjustments to conform
with IFRS:
|
|
|
|
|
181
|
240
|
Development costs, net
of amortization
|
39
|
75
|
|
|
6
|
6
|
Goodwill and other
intangible assets
|
2
|
2
|
|
|
12
|
12
|
Defined benefit
plans
|
4
|
4
|
|
|
(18)
|
5
|
Restructuring
provisions
|
5
|
(5)
|
|
|
14
|
12
|
Other
adjustments
|
7
|
-
|
|
|
(97)
|
(106)
|
Tax impact on
adjustments
|
(51)
|
(38)
|
|
|
64
|
41
|
Deferred tax assets
and tax contingencies recognition
|
66
|
16
|
|
|
162
|
210
|
Total
adjustments
|
72
|
54
|
|
|
783
|
984
|
Profit under
IFRS
|
234
|
329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 IFRS Guidance
CNH Industrial is confirming its 2014 IFRS guidance, consistent
with the 5-year plan financial projections presented at the
Investor Day on May 8th, as
follows:
- Consolidated revenues at approximately $34 billion;
- Consolidated trading profit between $2.6
billion and $2.7 billion;
- Net industrial debt between $2.2 billion
and $2.1 billion at the end of 2014;
- Consolidated net income before restructuring between
$1.1 billion and $1.2 billion.
Sergio
Marchionne
|
Richard
Tobin
|
Chairman
|
Chief Executive
Officer
|
Appendix - New product announcements during the
quarter
Agricultural Equipment
Case IH
- At the brand press event in France in July and at the Farm Progress Show
held in Iowa in August, Case IH
launched the Magnum Rowtrac tractor which pairs a proven Case IH
oscillating rear-track system with front tire options to fit
virtually any row width. The new tractor's distinctive design makes
it ideal for farming high-value specialty crops in wet conditions.
At the same time the new 2015 lineup of Farmall®
tractors and hay and forage tools were unveiled, expanding the Case
IH offering for the livestock sector. Case IH also launched a new
farm management system called AFS Connect 2.0 that uses advanced
telematics technology to help producers effectively monitor and
manage their operations. Additionally, at the Farm Progress Show,
Case IH introduced a number of yield-boosting designs and options
for both new and used planters to help producers get the most out
of every acre. The five new options make up the new Case IH
Precision Planting line-up and offer advantages in everything from
seed placement accuracy to residue management.
- In July, the Case IH Puma 210 tractor was recognized with the
"Market Leading Award" within China's Annual Ag Machinery Top 50 Awards.
These awards are handled by China Association of Agricultural
Machinery Manufacturers (CAAMM), Chinese Society for Ag Machinery
(CSAM) and Farm Machinery magazine.
- For the first time in Australia, Case IH is offering its innovative
Magnum tractor in a mid-size frame, with the launch of the Magnum
200, 220 and 240 models. These heavy tractors are ideally suited to
mid-size tillage and farming applications, but they are also
versatile and adaptable for a wide range of uses.
- In Brazil, for the second year
in a row, Case IH was recognized as one of the top two most desired
brands by the National Federation of Motor Vehicles (FENABRAVE) in
the Tractor and Farm Machinery category following the results of
their annual dealer survey.
New Holland Agriculture
- In July, the all-new CR combine harvester range was introduced
in EMEA together with the upgraded CX5000 and CX6000 Elevation
combine models and the Roll-Belt ActiveSweep™ balers,
designed to preserve long unbroken crops and gentle handling for
traditional hay and straw operations.
- In August, the CR10.90 harvester broke the GUINNESS WORLD
RECORDS™ title for the most wheat harvested within eight hours by a
combine, harvesting 797.656 tonnes. This model has up to 15% higher
productivity than the brand's previously highest capacity
model.
- In August, at the Farm Progress show, New Holland celebrated
the 50th anniversary of its windrower technology with
the launch of the new Speedrower® equipped with the
proven ECOBlue™ Tier 4B engine and the industry-leading
QuickMax™ knife-change system. The brand also introduced
the new Genesis® T8 SmartTrax™ Tier 4B that
matches the overall versatility of a wheeled tractor with the high
traction and flotation of rubber tracks ensuring minimum soil
disturbance.
- In NAFTA and EMEA, New Holland Agriculture launched
PLM® Connect telematics that allows farmers to receive
real-time information on every machine working in their fields and
improve productivity and efficiency.
- In Brazil, the brand was
honored with the "Tractor of the Year" award for the T7.245 tractor
as well as with the "Gold Trophy" for the CR6080 Twin Rotor combine
by the Gerdau Melhores da Terra Awards 2014.
- In APAC, the New Holland BC5070 small square baler received the
"Application Contribution Award" within China's Annual Ag Machinery Top 50
Awards.
- In September, New Holland launched its new Excel 6010 tractor
series at a few of the major Agri
Fairs throughout India.
This 60 hp tractor features a unique combination of technological
innovations and international styling. At the Agri Fair in Punjab,
New Holland was also awarded best stand at the fair.
*****
In July 2014, CNH Industrial
inaugurated its new Agricultural Equipment manufacturing complex in
Harbin, in Heilongjiang Province. With an investment of
over $100 million, it is the largest
agricultural equipment production plant in Northeast China. The Company plans to produce
a complete line of products under the Case IH and New Holland
Agriculture brands to support the Country's agricultural needs, and
the full cycle of corn, wheat, soybean and hay production. The new
complex will manufacture planters, tractors, combine harvesters and
corn pickers (as well as their headers), and balers and hay
tools.
In September 2014, CNH Industrial
subsidiary in India was honored
with the prestigious "Industrial Excellence Award" 2014 by The
Sugar Technologists Association of India (STAI). The award was bestowed for the
Company's contributions towards the development of the
mechanization of sugarcane harvesting in the Indian sugar industry
with its market leading Case IH equipment.
Construction Equipment
Case Construction Equipment
- In September, Case Construction Equipment launched in
Europe the new F Series range of
compact wheel loaders that sets new standards of productivity,
versatility, comfort, all with low cost of operation. The four
model line-up, ranging from the 4.4 ton 21F to the 6.2 ton 321F,
delivers consistently high levels of performance in every task with
a powerful, highly efficient new hydraulic system. The low cab
means the new compact wheel loaders move efficiently in every
jobsite and are easy to transport.
- Case Construction Equipment exhibited machines from the
renowned range of highly productive wheel loaders and skid steer
loaders, at the RWM exhibition, which took place in Birmingham (UK) in mid-September. The line-up
included a 721FXR waste specification wheel loader and a 621FXT
wheel loader, designed specifically for working within the waste
and recycling management sectors, together with the versatile Tier
4 SV185 skid steer loader.
- The new Case SiteWatch iPad app, launched globally in July,
gives business owners and fleet managers deployment, maintenance
and security information on their iPad. The app provides actionable
information to help manage fleet maintenance, optimize machine
performance/utilization, lower fuel consumption and idle time, and
lower total cost of operation.
- In August in North America,
Case Construction Equipment launched a new equipment configurator
at www.CaseCE.com/configure. The online tool allows customers to
configure their optimal machine across all Case product categories
and send the specs directly to their local dealer.
- In North America, Case
Construction Equipment's M Series crawler dozers were named as one
of the 2014 "Contractors' Top 50 New Products". The Contractors'
Top 50 list was compiled based on total reader inquiries from
Equipment Today magazine as well as user engagement on
ForConstructionPros.com over a 12-month period.
- In North America, Case
Construction Equipment introduced a new Case S Series Multi-fit
Coupler. By using a coupler system, contractors can transform their
hydraulic excavators into a multi-tool carrier capable of carrying
out a number of tasks all while staying in the comfort of the cab.
This genuine twin-locking coupler is a fully automatic, hydraulic
quick coupler that is proven to be lighter and safer than existing
products on the market.
New Holland Construction
- In August, New Holland Construction increased its portfolio of
products manufactured in Brazil,
after the localization of the dozer model D140B in the brands
facility in Contagem (MG). The D140B comes equipped with an engine
developed by Powertrain, a common rail injection system. Equipped
with a turbocharger and intercooler, the engine meets the
certification standards of Tier 3 emissions.
- In July, New Holland Construction globally launched its new
FleetForce app for iPad, which enables fleet managers to run their
fleet efficiently when they are in the field. The app delivers
in-depth performance and productivity data to the iPad, helping
them optimizing the units' deployment and productivity, reducing
maintenance costs and improving security.
- In July, New Holland Construction received the certificate of
new ISGE Benchmarking (Spontaneous General Satisfaction Index) for
its product range and becoming the reference construction equipment
manufacturer in Latin America for
year 2014. The recognition was granted by the IBRC Institute, whose
mission is to develop the relationship between companies and
customers.
Commercial Vehicles
Trucks
- In EMEA, Iveco participated at the 65th IAA
Commercial Vehicles in Hanover,
which is the sector's most important international trade fair.
Iveco displayed its complete vehicle range and showcased the
patented High-Efficiency Selective Catalytic Reduction system
(Hi-SCR), which significantly contributes to lowering the total
cost of ownership. The stand also featured Iveco's low
environmental impact, alternative propulsion vehicles, including
the new Daily electric, the new Daily CNG (Compressed Natural
Gas) and the Stralis Natural Power Euro VI LNG (Liquefied Natural
Gas). The highlight was the international debut of the new Daily,
the third generation of Iveco's light commercial vehicle, with the
all-new 8-speed HI-MATIC automatic transmission. The new Daily has
been available at dealerships across Europe since early June, and will be gradually
introduced in APAC markets during 2015.
- The new Daily was named "International Van of the Year 2015"
during the IAA in Hanover. The
annual award is conferred by a jury of 23 journalists from leading
international commercial vehicle publications. The jury chooses the
van that "has made the greatest contribution to the standards of
efficiency and the sustainability of transport of goods by road
with respect to environment and safety of people".
- Also presented at Hanover was
the Iveco Vision, a concept commercial vehicle dedicated to
sustainable mobility with a particular focus on environmental
impact, alternative traction, driver assistance and comfort. This
concept, which incorporates a number of innovative solutions,
confirms Iveco's continued commitment to the mobility of the future
through research into advanced technological solutions and trends
in future mobility. More than just a work tool, the Iveco Vision
concept is also a business platform and a mobile management
center.
- The new Astra HD9 with a 560 hp Euro VI Cursor 13 engine was
also presented on the international stage for the first time.
- In the APAC region, Commercial Vehicles presented the new
Stralis LNG at the Gazprom stand at Autotrans 2014 in Moscow in September.
- In August, Iveco appointed its first dealer for imported
vehicles in southwest China at a
ceremony held in the Sichuan
Province. Seven new Stralis trucks were ordered on the
occasion.
- In addition, Iveco officially kicked off retail activities in
Taiwan which will be managed in
partnership with a newly-appointed dealer.
Bus
- In July, Iveco Bus won a significant contract for the supply of
300 Eurorider chassis in Egypt.
The chassis will be manufactured at the Iveco Bus plant in Annonay,
France.
- Iveco Bus also won a major tender in Germany to supply up to 710 Crossway buses to
DB FuhrparkService GmbH (a subsidiary of Deutsche Bahn),
Germany's largest bus transport
company. Under the terms of the agreement, Iveco Bus is to deliver
400 Crossway and Crossway LE (Low Entry) buses to DB Regio Bus,
with an option for an additional 310 vehicles to be delivered in
2017 and 2018. The agreement confirms Iveco Bus's leadership in the
European market and the proven reliability of the Crossway
range.
Powertrain
- In the third quarter, Powertrain signed a contract with a new
customer, Xiamen King Long
United Automotive Industry Co., Ltd. (King
Long), one of the leading Chinese bus manufacturers, for the
supply of Euro VI compliant Cursor 9 engines for a new 12-meter
coach. Production of the engines began during the quarter.
- New production launches included: F1A and F1C GBIV engines for
Naveco, Cursor 16 Tier 4B engines for Case IH and New Holland
Agriculture combines and 650 hp Cursor 9 marine engines for
Caterpillar.
- At the Cannes Yachting Festival in September, Powertrain
showcased its S30 engine powering the innovative hybrid boat "KITE
ALIKE".
- The Driveline plant in Turin
was awarded the WCM program's Silver Level certification,
confirming Powertrain's commitment to increasingly competitive and
reliable production processes.
*****
In September, CNH Industrial was confirmed as Industry Leader in
the Dow Jones Sustainability Indices (DJSI) World and Europe for the fourth consecutive year. The
2014 assessment resulted in a score of 87/100 for CNH Industrial,
compared to an average of 50/100 for the participating companies in
the Machinery and Electrical Equipment industry. All companies
chosen for consideration in the indices are evaluated by RobecoSAM,
investment specialists focused exclusively on Sustainability
Investing. Inclusion in the prestigious DJSI family of indices is
limited to companies judged as exemplary in terms of their
economic, environmental and social performance. The Company's
position in DJSI reflects the significant results achieved in a
number of areas that led to the highest score in the economic and
environmental dimension.
About CNH Industrial
CNH Industrial N.V. is a global leader in the capital goods
sector that, through its various businesses, designs, produces and
sells agricultural and construction equipment, trucks, commercial
vehicles, buses and specialty vehicles, in addition to a broad
portfolio of powertrain applications. Present in all major markets
worldwide, CNH Industrial is focused on expanding its presence in
high growth markets, including through new joint ventures. Further
information on CNH Industrial and its businesses is available on
the corporate website www.cnhindustrial.com.
Additional Information
Today, at 4:00
p.m. GMT, management will hold a conference call
to present 2014 third quarter and first nine months results to
financial analysts and institutional investors. The call can be
followed live and a recording will be available later on the
Company's website (www.cnhindustrial.com). A presentation will be
made available on the CNH Industrial website prior to the call.
Non-GAAP Financial Information
CNH Industrial monitors its operations through the use of
several non-GAAP financial measures. CNH Industrial believes that
these non-GAAP financial measures provide useful and relevant
information regarding its results and enhance the reader's ability
to assess CNH Industrial financial performance and financial
position. They provide measures which facilitate management's
ability to identify operational trends, as well as make decisions
regarding future spending, resource allocations and other
operational decisions. These and similar measures are widely used
in the industries in which the Company operates. These financial
measures may not be comparable to other similarly titled measures
used by other companies and are not intended to be substitutes for
measures of financial performance and financial position prepared
in accordance with U.S. GAAP and/or IFRS.
CNH Industrial non-GAAP financial measures are defined as
follows:
- Operating Profit under U.S. GAAP: Operating Profit of
Industrial Activities is defined as net sales less cost of goods
sold, selling, general and administrative expenses and research and
development expenses. Operating Profit of Financial Services is
defined as revenues, less selling, general and administrative
expenses, interest expenses and certain other operating
expenses.
- Trading Profit under IFRS: Trading Profit derived from
financial information prepared in accordance with IFRS, is the
internal financial measure management uses to assess the
performance of operating segments. Trading Profit is defined as
income before restructuring, gains/(losses) on disposal of
investments and other unusual items, interest expense of Industrial
Activities, income taxes, equity in income (loss) of unconsolidated
subsidiaries and affiliates, non-controlling interests.
- Operating Profit under IFRS: Operating Profit under IFRS is
computed starting from Trading Profit under IFRS plus/minus
restructuring costs, other income (expenses) that are unusual in
the ordinary course of business (such as gains and losses on the
disposal of investments and other unusual items arising from
infrequent external events or market conditions).
- Net income (loss) before restructuring and other exceptional
items: it is defined as Net income (loss), less restructuring
charges and exceptional items, after tax.
- Net Debt and Net Debt of Industrial Activities (or Net
Industrial Debt): CNH Industrial provides the reconciliation of Net
Debt to Total Debt, which is the most directly comparable measure
included in the consolidated balance sheets. Due to different
sources of cash flows used for the repayment of the debt between
Industrial Activities and Financial Services (by cash from
operations for Industrial Activities and by collection of financing
receivables for Financial Services), management separately
evaluates the cash flow performance of Industrial Activities using
Net Debt of Industrial Activities.
- Working capital: it is defined as trade receivables and
financing receivables related to sales, net, plus inventories, less
trade payables, plus other assets (liabilities), net.
- Constant Currency: CNH Industrial discusses the fluctuations in
revenues and certain non-GAAP financial measures on a constant
currency basis by applying the prior-year exchange rates to current
year's values expressed in local currency in order to eliminate the
impact of foreign exchange rate fluctuations.
Forward-looking statements
Certain statements contained in this earnings release that are
not statements of historical fact constitute forward-looking
statements, notwithstanding that such statements are not
specifically identified. These statements may include terminology
such as "may", "will", "expect", "could", "should", "intend",
"estimate", "anticipate", "believe", "remain", "on track",
"design", "target", "objective", "goal", "forecast", "projection",
"outlook", "prospects", "plan", or similar terminology.
Forward-looking statements are not guarantees of future
performance. Rather, they are based on current views and
assumptions and involve known and unknown risks, uncertainties and
other factors, many of which are outside the Company's control and
are difficult to predict. If any of these risks and uncertainties
materialize or other assumptions underlying any of the
forward-looking statements prove to be incorrect the actual results
or developments may differ materially from any future results or
developments expressed or implied by the forward-looking
statements. Factors, risks, and uncertainties that could cause
actual results to differ materially from those contemplated by the
forward-looking statements include, among others: the many
interrelated factors that affect consumer confidence and worldwide
demand for capital goods and capital goods-related products;
general economic conditions in each of the Company's markets;
changes in government policies regarding banking, monetary and
fiscal policies; legislation, particularly relating to capital
goods-related issues such as agriculture, the environment, debt
relief and subsidy program policies, trade and commerce and
infrastructure development; actions of competitors in the various
industries in which the Company competes; development and use of
new technologies and technological difficulties; production
difficulties, including capacity and supply constraints and excess
inventory levels; labor relations; interest rates and currency
exchange rates; inflation and deflation; energy prices; housing
starts and other construction activity; the Company's ability to
obtain financing or to refinance existing debt; a decline in the
price of used vehicles; the resolution of pending litigation and
investigations; the Company's relations with Kobelco Construction
Machinery Co., Ltd and Sumitomo (S.H.I.) Construction Machinery
Co., Ltd.; the Company's pension plans and other post-employment
obligations; political and civil unrest; volatility and
deterioration of capital and financial markets, including further
worsening of the Eurozone sovereign debt crisis and other similar
financial risks and uncertainties; and the Company's success in
managing the risks involved in the foregoing. Further information
concerning factors, risks, and uncertainties that could materially
affect the Company's financial results is included in our
annual report on Form 20-F for the year ended December 31, 2013, prepared in accordance with
U.S. GAAP and in our EU Annual Report at December 31, 2013, prepared in accordance with
IFRS. Investors should refer and consider the incorporated
information on risks, factors, and uncertainties in addition to the
information presented here.
Forward-looking statements speak only as of the date on which
such statements are made. Furthermore, in light of ongoing
difficult macroeconomic conditions, both globally and in the
industries in which CNH Industrial operates, it is particularly
difficult to forecast results, and any estimates or forecasts of
particular periods that are provided in this earnings release are
uncertain. Accordingly, investors should not place undue reliance
on such forward-looking statements. Actual results could differ
materially from those anticipated in such forward-looking
statements. CNH Industrial does not undertake an obligation to
update or revise publicly any forward-looking statements.
The Company's outlook is based upon assumptions relating to the
factors described in the earnings release, which are sometimes
based upon estimates and data received from third parties. Such
estimates and data are often revised. The Company undertakes no
obligation to update or revise its outlook or forward-looking
statements, whether as a result of new developments or otherwise.
Further information concerning the Company and its businesses,
including factors that potentially could materially affect the
Company's financial results, is included in the Company's reports
and filings with the U.S. Securities and Exchange Commission, the
Autoriteit Financiele Markten ("AFM") and Commissione Nazionale per
le Societa e la Borsa ("CONSOB").
Contacts
|
|
|
|
Media
Inquiries
|
Investor
Relations
|
|
|
Richard
Gadeselli
|
Federico
Donati
|
Tel: +44 1268
292468
|
Tel: +39 011 00
62756
|
|
|
Maurizio
Pignata
|
Noah Weiss
|
Tel: +39 011 00
72122
|
Tel: +1 630 887
3745
|
|
|
e-mail:
mediarelations@cnhind.com
|
|
www.cnhindustrial.com
|
|
CNH INDUSTRIAL
N.V.
|
Condensed
Consolidated Statements of Operations
|
For The Three
Months Ended September 30, 2014 and 2013 and For The Nine Months
Ended September 30, 2014 and 2013
|
(Unaudited)
|
|
(U.S.
GAAP)
|
($
million)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues
|
|
|
|
|
|
|
|
Net sales
|
7,403
|
|
7,872
|
|
23,178
|
|
23,655
|
Finance and interest
income
|
336
|
|
294
|
|
1,012
|
|
891
|
TOTAL
REVENUES
|
7,739
|
|
8,166
|
|
24,190
|
|
24,546
|
Costs and
Expenses
|
|
|
|
|
|
|
|
Cost of goods
sold
|
5,998
|
|
6,352
|
|
18,797
|
|
19,117
|
Selling, general and
administrative expenses
|
736
|
|
735
|
|
2,240
|
|
2,225
|
Research and
development expenses
|
254
|
|
277
|
|
809
|
|
838
|
Restructuring
expenses
|
56
|
|
3
|
|
98
|
|
32
|
Interest
expense
|
327
|
|
290
|
|
976
|
|
863
|
Other, net
|
109
|
|
74
|
|
307
|
|
244
|
TOTAL COSTS AND
EXPENSES
|
7,480
|
|
7,731
|
|
23,227
|
|
23,319
|
INCOME BEFORE INCOME
TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND
AFFILIATES
|
259
|
|
435
|
|
963
|
|
1,227
|
Income
taxes
|
107
|
|
182
|
|
408
|
|
541
|
Equity in income of
unconsolidated subsidiaries and affiliates
|
10
|
|
22
|
|
66
|
|
88
|
NET INCOME
|
162
|
|
275
|
|
621
|
|
774
|
Net income
attributable to noncontrolling interests
|
(11)
|
|
52
|
|
(6)
|
|
157
|
NET INCOME
ATTRIBUTABLE TO CNH INDUSTRIAL N.V.
|
173
|
|
223
|
|
627
|
|
617
|
|
|
|
|
|
|
|
|
(in $)
|
|
|
|
|
|
|
|
Earnings per share
attributable to common shareholders
|
|
|
|
|
|
|
|
Basic
|
0.13
|
|
0.18
|
|
0.46
|
|
0.50
|
Diluted
|
0.13
|
|
0.18
|
|
0.46
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
These Condensed
Consolidated Statements of Operations should be read in conjunction
with the Company's Audited Consolidated Financial Statements and
Notes for the Year Ended December 31, 2013 included in the Annual
Report on Form 20-F. These Condensed Consolidated Statements
of Operations represent the consolidation of all CNH Industrial
N.V. subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
Condensed
Consolidated Balance Sheets
|
As of September
30, 2014 and December 31, 2013
|
(Unaudited)
|
|
(U.S.
GAAP)
|
($
million)
|
|
September 30,
2014
|
|
December 31,
2013
|
|
Cash and cash
equivalents
|
|
4,615
|
|
5,567
|
|
Restricted
cash
|
|
802
|
|
922
|
|
Trade receivables,
net
|
|
1,187
|
|
1,362
|
|
Financing
receivables, net
|
|
22,294
|
|
21,976
|
|
Inventories,
net
|
|
8,479
|
|
7,410
|
|
Property, plant and
equipment, net
|
|
6,905
|
|
7,090
|
|
Investments in
unconsolidated subsidiaries and affiliates
|
|
626
|
|
645
|
|
Equipment under
operating leases
|
|
1,350
|
|
1,059
|
|
Goodwill
|
|
2,487
|
|
2,504
|
|
Other intangible
assets, net
|
|
746
|
|
810
|
|
Deferred tax
assets
|
|
1,872
|
|
1,679
|
|
Derivative
assets
|
|
165
|
|
261
|
|
Other
assets
|
|
2,345
|
|
2,558
|
|
TOTAL
ASSETS
|
|
53,873
|
|
53,843
|
|
Debt
|
|
30,833
|
|
29,866
|
|
Trade
payables
|
|
6,130
|
|
7,369
|
|
Deferred tax
liabilities
|
|
453
|
|
385
|
|
Pension,
postretirement and other post-employment benefits
|
|
2,298
|
|
2,427
|
|
Derivative
liabilities
|
|
240
|
|
94
|
|
Other
liabilities
|
|
8,639
|
|
8,735
|
|
Total
liabilities
|
|
48,593
|
|
48,876
|
|
Redeemable
noncontrolling interest
|
|
14
|
|
12
|
|
Equity
|
|
5,266
|
|
4,955
|
|
TOTAL EQUITY AND
LIABILITIES
|
|
53,873
|
|
53,843
|
|
|
|
|
|
|
|
|
These Condensed
Consolidated Balance Sheets should be read in conjunction with the
Company's Audited Consolidated Financial Statements and Notes for
the Year Ended December 31, 2013 included in the Annual Report on
Form 20-F. These Condensed Consolidated Balance Sheets represent
the consolidation of all CNH Industrial N.V.
subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
Condensed
Consolidated Statements of Cash Flows
|
For The Nine
Months Ended September 30, 2014 and 2013
|
(Unaudited)
|
|
(U.S.
GAAP)
|
($
million)
|
Nine Months Ended
September 30,
|
|
2014
|
2013
|
|
Operating
activities:
|
|
|
|
Net income
|
621
|
774
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization expense, net of assets under operating
lease and assets sold under buy-back
commitments
|
556
|
511
|
|
Depreciation and
amortization expense of assets under operating lease
and assets sold under buy-back
commitments
|
303
|
280
|
|
Loss from disposal of
assets
|
4
|
(5)
|
|
Undistributed loss of
unconsolidated subsidiaries
|
(5)
|
(6)
|
|
Other non-cash
items
|
177
|
132
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Provisions
|
210
|
379
|
|
Deferred income
taxes
|
(116)
|
(197)
|
|
Trade and financing
receivables related to sales, net
|
(1,041)
|
(1,416)
|
|
Inventories,
net
|
(1,571)
|
(1,824)
|
|
Trade
payables
|
(861)
|
227
|
|
Other assets and
liabilities
|
255
|
71
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
(1,468)
|
(1,074)
|
|
Investing
activities:
|
|
|
|
Net additions of
retail receivables
|
(99)
|
(656)
|
|
Proceeds from the sale
of assets, net of assets under operating leases
and assets sold under buy-back
commitments
|
16
|
1
|
|
Proceeds from the sale
of assets previously under operating leases and
assets sold under buy-back
commitments
|
391
|
334
|
|
Expenditures
for property, plant and equipment and intangible assets, net
of assets under operating lease
and assets sold under buy-back commitments
|
(601)
|
(645)
|
|
Expenditures for
assets under operating leases and assets sold under
buy-back commitments
|
(1,240)
|
(891)
|
|
Other
|
451
|
151
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
(1,082)
|
(1,706)
|
|
Financing
activities:
|
|
|
|
Net increase in
debt
|
2,267
|
1,700
|
|
Dividends
paid
|
(381)
|
(365)
|
|
Other
|
15
|
(5)
|
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
1,901
|
1,330
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(303)
|
(33)
|
|
DECREASE IN CASH AND
CASH EQUIVALENTS
|
(952)
|
(1,483)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
5,567
|
5,199
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
4,615
|
3,716
|
|
|
|
These
Condensed Consolidated Statements of Cash Flows should be read
in conjunction with the Company's Audited Consolidated Financial
Statements and Notes for the Year Ended December 31, 2013 included
in the Annual Report on Form 20-F. These Condensed Consolidated
Statements of Cash Flows represent the consolidation of all CNH
Industrial N.V. subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
Supplemental
Statements of Operations
|
For The Three
Months Ended September 30, 2014 and 2013 and For The Nine Months
Ended September 30, 2014 and 2013
|
(Unaudited)
|
|
(U.S.
GAAP)
|
|
Industrial
Activities
|
|
Financial
Services
|
($
million)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
Three Months Ended
September 30,
|
Nine Months
Ended
September
30,
|
2014
|
2013
|
2014
|
2013
|
|
2014
|
2013
|
2014
|
2013
|
Revenues
|
|
|
|
|
|
|
|
|
|
Net sales
|
7,403
|
7,872
|
23,180
|
23,665
|
|
-
|
-
|
-
|
-
|
Finance and interest
income
|
65
|
70
|
191
|
203
|
|
455
|
416
|
1,363
|
1,247
|
TOTAL
REVENUES
|
7,468
|
7,942
|
23,371
|
23,868
|
|
455
|
416
|
1,363
|
1,247
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
5,998
|
6,352
|
18,799
|
19,127
|
|
-
|
-
|
-
|
-
|
Selling, general and
administrative expenses
|
629
|
644
|
1,960
|
1,994
|
|
107
|
91
|
280
|
231
|
Research and
development expenses
|
254
|
277
|
809
|
838
|
|
-
|
-
|
-
|
-
|
Restructuring
expenses
|
56
|
3
|
98
|
32
|
|
-
|
-
|
-
|
-
|
Interest
expense
|
211
|
192
|
630
|
571
|
|
180
|
164
|
530
|
491
|
Interest compensation
to Financial Services
|
85
|
91
|
265
|
256
|
|
-
|
-
|
-
|
-
|
Other, net
|
92
|
63
|
239
|
179
|
|
52
|
46
|
161
|
169
|
TOTAL COSTS AND
EXPENSES
|
7,325
|
7,622
|
22,800
|
22,997
|
|
339
|
301
|
971
|
891
|
INCOME BEFORE INCOME
TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND
AFFILIATES
|
143
|
320
|
571
|
871
|
|
116
|
115
|
392
|
356
|
Income
taxes
|
61
|
130
|
267
|
398
|
|
46
|
52
|
141
|
143
|
Equity in income of
unconsolidated subsidiaries and affiliates
|
4
|
18
|
52
|
77
|
|
6
|
4
|
14
|
11
|
Result from
intersegment Investments
|
76
|
67
|
265
|
224
|
|
(1)
|
(2)
|
1
|
(4)
|
NET INCOME
|
162
|
275
|
621
|
774
|
|
75
|
65
|
266
|
220
|
|
|
These Supplemental
Statements of Operations are presented for informational
purposes. The supplemental Industrial Activities data in
these statements (with Financial Services on the equity basis)
include CNH Industrial N.V.'s Agricultural Equipment, Construction
Equipment, Commercial Vehicles and Powertrain segments, as well as
corporate functions. The supplemental Financial Services data in
these statements refer to CNH Industrial N.V.'s Financial Services
segment. Transactions between Industrial Activities and Financial
Services have been eliminated to arrive at the consolidated
financial statements.
|
CNH INDUSTRIAL
N.V.
|
Supplemental
Balance Sheets
|
As of September
30, 2014 and December 31, 2013
|
(Unaudited)
|
|
(U.S.
GAAP)
|
|
Industrial
Activities
|
Financial
Services
|
($
million)
|
September 30,
2014
|
December
31, 2013
|
September
30, 2014
|
December
31, 2013
|
Cash and cash
equivalents
|
3,750
|
4,010
|
865
|
1,557
|
Restricted
cash
|
2
|
-
|
800
|
922
|
Trade receivables,
net
|
1,151
|
1,338
|
84
|
88
|
Financing
receivables, net
|
5,161
|
5,826
|
23,592
|
23,640
|
Inventories,
net
|
8,384
|
7,314
|
95
|
96
|
Property, plant and
equipment, net
|
6,902
|
7,085
|
3
|
5
|
Investments in
unconsolidated subsidiaries and affiliates
|
3,114
|
3,049
|
137
|
129
|
Equipment under
operating leases
|
23
|
34
|
1,327
|
1,025
|
Goodwill
|
2,325
|
2,340
|
162
|
164
|
Other intangible
assets, net
|
725
|
796
|
21
|
14
|
Deferred tax
assets
|
1,641
|
1,437
|
231
|
242
|
Derivative
assets
|
157
|
254
|
11
|
10
|
Other
assets
|
1,794
|
1,884
|
844
|
1,040
|
TOTAL
ASSETS
|
35,129
|
35,367
|
28,172
|
28,932
|
Debt
|
12,768
|
11,948
|
24,524
|
25,408
|
Trade
payables
|
6,037
|
7,162
|
144
|
273
|
Deferred tax
liabilities
|
285
|
225
|
168
|
160
|
Pension,
postretirement and other post-employment benefits
|
2,278
|
2,419
|
20
|
8
|
Derivative
liabilities
|
226
|
78
|
17
|
19
|
Other
liabilities
|
8,255
|
8,568
|
674
|
531
|
Total
liabilities
|
29,849
|
30,400
|
25,547
|
26,399
|
Redeemable
noncontrolling interest
|
14
|
12
|
-
|
-
|
Equity
|
5,266
|
4,955
|
2,625
|
2,533
|
TOTAL EQUITY AND
LIABILITIES
|
35,129
|
35,367
|
28,172
|
28,932
|
|
|
These Supplemental
Balance Sheets are presented for informational purposes. The
supplemental Industrial Activities data in these statements (with
Financial Services on the equity basis) include CNH Industrial
N.V.'s Agricultural Equipment, Construction Equipment, Commercial
Vehicles and Powertrain segments, as well as corporate functions.
The supplemental Financial Services data in these statements refer
to CNH Industrial N.V.'s Financial Services segment. Transactions
between Industrial Activities and Financial Services have been
eliminated to arrive at the consolidated financial
statements.
|
CNH INDUSTRIAL
N.V.
|
Supplemental
Statements of Cash Flows
|
For The Nine
Months Ended September 30, 2014 and 2013
|
(Unaudited)
|
|
(U.S.
GAAP)
|
|
Industrial
Activities
|
Financial
Services
|
|
($
million)
|
Nine Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
2014
|
2013
|
2014
|
2013
|
|
Operating
activities:
|
|
|
|
|
|
Net income
|
621
|
774
|
266
|
220
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization expense, net of assets under
operating lease and assets sold
under buy-back commitments
|
552
|
508
|
4
|
3
|
|
Depreciation and
amortization expense of assets under operating
lease and assets sold under
buy-back commitments
|
196
|
188
|
107
|
92
|
|
Loss (gain) from
disposal of assets
|
-
|
(4)
|
4
|
(1)
|
|
Undistributed income
(loss) of unconsolidated subsidiaries
|
(153)
|
18
|
(15)
|
-
|
|
Other non-cash
items
|
56
|
57
|
121
|
75
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Provisions
|
203
|
357
|
7
|
22
|
|
Deferred income
taxes
|
(124)
|
(188)
|
8
|
(9)
|
|
Trade and financing
receivables related to sales, net
|
110
|
(23)
|
(1,138)
|
(1,405)
|
|
Inventories,
net
|
(1,599)
|
(1,843)
|
28
|
19
|
|
Trade
payables
|
(751)
|
233
|
(123)
|
2
|
|
Other assets and
liabilities
|
(76)
|
69
|
331
|
6
|
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
(965)
|
146
|
(400)
|
(976)
|
|
Investing
activities:
|
|
|
|
|
|
Net additions of
retail receivables
|
-
|
-
|
(99)
|
(656)
|
|
Proceeds from the sale
of assets, net of assets under operating leases
and assets sold under buy-back
commitments
|
16
|
1
|
-
|
-
|
|
Proceeds from the sale
of assets previously under operating leases and
assets sold under buy-back
commitments
|
213
|
153
|
178
|
181
|
|
Expenditures for
property, plant and equipment and intangible assets, net
of assets under operating
lease and assets sold under buy-back commitments
|
(588)
|
(644)
|
(13)
|
(1)
|
|
Expenditures for
assets under operating leases and assets sold under
buy-back commitments
|
(589)
|
(486)
|
(651)
|
(405)
|
|
Other
|
325
|
271
|
113
|
(131)
|
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
(623)
|
(705)
|
(472)
|
(1,012)
|
|
Financing
activities:
|
|
|
|
|
|
Net increase in
debt
|
1,942
|
(84)
|
325
|
1,784
|
|
Dividends
paid
|
(381)
|
(365)
|
(103)
|
(244)
|
|
Other
|
15
|
(5)
|
13
|
11
|
|
NET CASH PROVIDED BY
(USED IN) FINANCING ACTIVITIES
|
1,576
|
(454)
|
235
|
1,551
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(248)
|
(9)
|
(55)
|
(24)
|
|
DECREASE IN CASH AND
CASH EQUIVALENTS
|
(260)
|
(1,022)
|
(692)
|
(461)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
4,010
|
3,890
|
1,557
|
1,309
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
3,750
|
2,868
|
865
|
848
|
|
|
|
|
|
|
|
|
|
These Supplemental
Statements of Cash Flows are presented for informational
purposes. The supplemental Industrial Activities data in
these statements (with Financial Services on the equity basis)
include CNH Industrial N.V.'s Agricultural Equipment, Construction
Equipment, Commercial Vehicles and Powertrain segments, as well as
corporate functions. The supplemental Financial Services data in
these statements refer to CNH Industrial N.V.'s Financial Services
segment. Transactions between Industrial Activities and Financial
Services have been eliminated to arrive at the consolidated
financial statements.
|
|
CNH INDUSTRIAL
N.V.
|
Other Supplemental
Financial Information
|
(Unaudited)
|
|
(U.S.
GAAP)
|
|
Net Income and
basic EPS before Restructuring and Exceptional Items
($ million,
except per share data)
|
|
Nine Months Ended
September 30,
|
|
Three Months Ended
September 30,
|
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
621
|
774
|
Net
income
|
162
|
275
|
|
|
88
|
31
|
Restructuring
expenses, net of tax
|
52
|
2
|
|
|
64
|
25
|
Other exceptional
items, net of tax
|
-
|
-
|
|
|
773
|
830
|
Net income before
restructuring and other exceptional items
|
214
|
277
|
|
|
768
|
673
|
Net income before
restructuring and other exceptional items attributable to CNH
Industrial N.V.
|
214
|
225
|
|
|
1,354
|
1,223
|
Weighted average
shares outstanding (million)
|
1,354
|
1,224
|
|
|
0.57
|
0.55
|
Basic EPS before
restructuring and exceptional items ($)
|
0.16
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
Activities Cash Provided (Used) by Working Capital
($ million)
|
|
|
|
Balance as of
December 31, 2013
|
Effect of Foreign
Currency Translation and Non-Cash Transactions
|
Balance as of
September 30, 2014
|
Cash Provided
(Used) by Working Capital
|
|
|
Trade and financing
receivables related to sales, net
|
|
1,395
|
(58)
|
1,227
|
110
|
|
|
Inventories,
net
|
|
7,314
|
(529)
|
8,384
|
(1,599)
|
|
|
Trade
payables
|
|
7,162
|
(374)
|
6,037
|
(751)
|
|
|
Other assets and
liabilities, net
|
|
(777)
|
(218)
|
(754)
|
(241)
|
|
|
Working
capital
|
|
770
|
(431)
|
2,820
|
(2,481)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Translation of financial statements denominated in a currency
other than the U.S. dollar
The principal exchange rates used to translate into U.S. dollars
the financial statements prepared in currencies other than the U.S.
dollar were as follows:
|
1/1 –
9/30/2014
|
|
At December 31,
2013
|
|
1/1 –
9/30/2013
|
|
Average
|
At September
30
|
|
|
|
Average
|
At September
30
|
Euro
|
0.738
|
0.795
|
|
0.725
|
|
0.759
|
0.740
|
Pound
sterling
|
0.599
|
0.618
|
|
0.605
|
|
0.647
|
0.619
|
Swiss
franc
|
0.899
|
0.959
|
|
0.890
|
|
0.935
|
0.905
|
Polish
zloty
|
3.081
|
3.320
|
|
3.012
|
|
3.190
|
3.131
|
Brazilian
real
|
2.290
|
2.449
|
|
2.362
|
|
2.120
|
2.251
|
Argentine
peso
|
7.984
|
8.478
|
|
6.518
|
|
5.278
|
5.790
|
Turkish
lira
|
2.165
|
2.287
|
|
2.147
|
|
1.867
|
2.037
|
CNH INDUSTRIAL
N.V.
|
Consolidated
Income Statement
|
For The Three
Months Ended September 30, 2014 and 2013 and For The Nine Months
Ended September 30, 2014 and 2013
|
(Unaudited)
|
|
(IFRS)
|
($
million)
|
|
3rd
Quarter 2014
|
3rd
Quarter 2013 (*)
|
1/1 – 9/30
2014
|
1/1 – 9/30 2013
(*)
|
Net
revenues
|
|
7,817
|
8,236
|
24,469
|
24,816
|
Cost of
sales
|
|
6,322
|
6,631
|
19,760
|
19,954
|
Selling, general and
administrative costs
|
|
672
|
690
|
2,110
|
2,143
|
Research and
development costs
|
|
217
|
204
|
645
|
602
|
Other
income/(expenses)
|
|
(36)
|
(37)
|
(73)
|
(77)
|
TRADING
PROFIT/(LOSS)
|
|
570
|
674
|
1,881
|
2,040
|
Gains/(losses) on the
disposal of investments
|
|
-
|
-
|
-
|
-
|
Restructuring
costs
|
|
51
|
8
|
116
|
27
|
Other unusual
income/(expenses)
|
|
(14)
|
(7)
|
(24)
|
(64)
|
OPERATING
PROFIT/(LOSS)
|
|
505
|
659
|
1,741
|
1,949
|
Financial
income/(expenses)
|
|
(191)
|
(151)
|
(585)
|
(453)
|
Result from
investments:
|
|
12
|
25
|
68
|
94
|
Share of the
profit/(loss) of investees accounted for using the equity
method
|
|
12
|
25
|
68
|
93
|
Other
income/(expenses) from investments
|
|
-
|
-
|
-
|
1
|
PROFIT/(LOSS) BEFORE
TAXES
|
|
326
|
533
|
1,224
|
1,590
|
Income
taxes
|
|
92
|
204
|
441
|
606
|
PROFIT/(LOSS) FROM
CONTINUING OPERATIONS
|
|
234
|
329
|
783
|
984
|
Profit/(loss) from
discontinued operations
|
|
-
|
-
|
-
|
-
|
PROFIT/(LOSS) FOR THE
PERIOD
|
|
234
|
329
|
783
|
984
|
|
|
|
|
|
|
PROFIT/(LOSS) FOR THE
PERIOD ATTRIBUTABLE TO:
|
|
|
|
|
|
Owners of the
parent
|
|
245
|
273
|
789
|
811
|
Non-controlling
interests
|
|
(11)
|
56
|
(6)
|
173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in $)
|
|
|
|
|
|
BASIC EARNINGS/(LOSS)
PER COMMON SHARE
|
|
0.18
|
0.22
|
0.58
|
0.66
|
DILUTED
EARNINGS/(LOSS) PER COMMON SHARE
|
|
0.18
|
0.22
|
0.58
|
0.66
|
|
(*) Amounts recast in
order to reflect the change in presentation currency from Euro to
U.S. dollar.
|
|
This Consolidated
Income Statement should be read in conjunction with the Company's
Audited Consolidated Financial Statements and Notes for the Year
Ended December 31, 2013 included in the EU Annual Report. This
Consolidated Income Statement represents the consolidation of all
CNH Industrial N.V. subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
Consolidated
Statement of Financial Position
|
As of September
30, 2014 and December 31, 2013
|
(Unaudited)
|
|
(IFRS)
|
($
million)
|
|
September 30,
2014
|
December 31, 2013
(*)
|
ASSETS
|
|
|
|
Intangible
assets
|
|
5,964
|
6,046
|
Property, plant and
equipment
|
|
6,792
|
6,967
|
Investments and other
financial assets:
|
|
722
|
758
|
Investments accounted
for using the equity method
|
|
653
|
674
|
Other investments and
financial assets
|
|
69
|
84
|
Leased
assets
|
|
1,350
|
1,059
|
Defined benefit plan
assets
|
|
40
|
44
|
Deferred tax
assets
|
|
1,790
|
1,672
|
Total Non-current
assets
|
|
16,658
|
16,546
|
Inventories
|
|
8,594
|
7,536
|
Trade
receivables
|
|
1,187
|
1,362
|
Receivables from
financing activities
|
|
22,294
|
21,986
|
Current tax
receivables
|
|
372
|
348
|
Other current
assets
|
|
1,650
|
1,900
|
Current financial
assets:
|
|
165
|
261
|
Current
securities
|
|
-
|
-
|
Other financial
assets
|
|
165
|
261
|
Cash and cash
equivalents
|
|
5,417
|
6,489
|
Total Current
assets
|
|
39,679
|
39,882
|
Assets held for
sale
|
|
29
|
34
|
TOTAL
ASSETS
|
|
56,366
|
56,462
|
EQUITY AND
LIABILITIES
|
|
|
|
Issued capital and
reserves attributable to owners of the parent
|
|
7,859
|
7,591
|
Non-controlling
interests
|
|
43
|
71
|
Total
Equity
|
|
7,902
|
7,662
|
Provisions:
|
|
6,430
|
6,528
|
Employee
benefits
|
|
2,547
|
2,713
|
Other
provisions
|
|
3,883
|
3,815
|
Debt:
|
|
30,941
|
29,946
|
Asset-backed
financing
|
|
13,781
|
14,727
|
Other debt
|
|
17,160
|
15,219
|
Other financial
liabilities
|
|
240
|
94
|
Trade
payables
|
|
6,130
|
7,369
|
Current tax
payables
|
|
332
|
418
|
Deferred tax
liabilities
|
|
309
|
302
|
Other current
liabilities
|
|
4,082
|
4,143
|
Liabilities held for
sale
|
|
-
|
-
|
Total
Liabilities
|
|
48,464
|
48,800
|
TOTAL EQUITY AND
LIABILITIES
|
|
56,366
|
56,462
|
|
(*) Amounts
recast in order to reflect the change in presentation currency from
Euro to U.S. dollar.
|
|
This Consolidated
Statement of Financial Position should be read in conjunction with
the Company's Audited Consolidated Financial Statements and Notes
for the Year Ended December 31, 2013 included in the EU Annual
Report. This Consolidated Statement of Financial Position
represents the consolidation of all CNH Industrial N.V.
subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
Consolidated
Statement of Cash Flows
|
For The Nine
Months Ended September 30, 2014 and 2013
|
(Unaudited)
|
|
|
|
|
(IFRS)
|
|
|
|
($
million)
|
|
1/1 –
9/30/2014
|
1/1 – 9/30/2013
(*)
|
A) CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
|
6,489
|
6,084
|
B) CASH FLOWS
FROM/(USED IN) OPERATING ACTIVITIES DURING THE PERIOD:
|
|
|
|
Profit/(loss) for the
period
|
|
783
|
984
|
Amortization and
depreciation (net of vehicles sold under buy-back commitments and
operating lease)
|
|
861
|
733
|
(Gains)/losses from
disposal of non-current assets (net of vehicles sold under buy-back
commitments)
|
|
-
|
1
|
Other non-cash
items
|
|
86
|
16
|
Dividends
received
|
|
61
|
81
|
Change in
provisions
|
|
190
|
181
|
Change in deferred
income taxes
|
|
(127)
|
(149)
|
Change in items due
to buy-back commitments (a)
|
|
85
|
54
|
Change in operating
lease items (b)
|
|
(334)
|
(111)
|
Change in working
capital
|
|
(2,310)
|
(1,460)
|
TOTAL
|
|
(705)
|
330
|
C) CASH FLOWS
FROM/(USED IN) INVESTMENT ACTIVITIES:
|
|
|
|
Investments
in:
|
|
|
|
Property, plant and
equipment and intangible assets (net of vehicles sold under
buy-back commitments and operating lease)
|
|
(1,086)
|
(1,114)
|
Consolidated
subsidiaries and other equity investments
|
|
(5)
|
(114)
|
Proceeds from the
sale of non-current assets (net of vehicles sold under
buy-back)
|
|
16
|
1
|
Net change in
receivables from financing activities
|
|
(1,148)
|
(1,938)
|
Change in current
securities
|
|
-
|
5
|
Other
changes
|
|
264
|
(19)
|
TOTAL
|
|
(1,959)
|
(3,179)
|
D) CASH FLOWS
FROM/(USED IN) FINANCING ACTIVITIES:
|
|
|
|
Bonds
issued
|
|
2,801
|
600
|
Repayment of
bonds
|
|
-
|
(1,000)
|
Issuance of other
medium-term borrowings (net of repayments)
|
|
453
|
300
|
Net change in other
financial payables and other financial
assets/liabilities
|
|
(982)
|
1,771
|
Capital
increase
|
|
15
|
-
|
Dividends
paid
|
|
(381)
|
(365)
|
(Purchase)/sale of
ownership interests in subsidiaries
|
|
-
|
(5)
|
TOTAL
|
|
1,906
|
1,301
|
Translation exchange
differences
|
|
(314)
|
(53)
|
E) TOTAL CHANGE IN
CASH AND CASH EQUIVALENTS
|
|
(1,072)
|
(1,601)
|
F) CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
|
5,417
|
4,483
|
|
|
(*)
|
Amounts recast in
order to reflect the change in presentation currency from Euro to
U.S. dollar.
|
|
|
(a)
|
The cash flows
generated by the sale of vehicles under buy-back commitments, net
of the amounts included in Profit/(loss) for the period, are
included under operating activities in a single line item which
includes changes in working capital, capital expenditures,
depreciation and impairment losses. This item also includes gains
and losses arising from the sales of vehicles transferred under
buy-back commitments that occur before the end of the agreement
term without repossession of the vehicle.
|
|
|
(b)
|
Cash flows generated
during the period by operating lease arrangements are included in
operating activities in a single line item which includes capital
expenditures, depreciation, impairment losses and changes in
inventories.
|
|
This Consolidated
Statement of Cash Flows should be read in conjunction with the
Company's Audited Consolidated Financial Statements and Notes for
the Year Ended December 31, 2013 included in the EU Annual Report.
This Consolidated Statement of Cash Flows represents the
consolidation of all CNH Industrial N.V. subsidiaries.
|
SOURCE CNH Industrial N.V.