- 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.
CNH Industrial 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.
2 Basildon (UK) – (October 30, 2014) 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.
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.
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.
CNH Industrial Revenues by Segment
|2014||2013||% Change||2014||2013||% Change|
|- Eliminations and other||(2,177)||(2,190)||(644)||(694)|
|Total Industrial Activites||23,180||23,665||-2.0||7,403||7,872||-6.0|
|- Eliminations and other||(353)||(366)||(119)||(122)|