CNH Industrial 2022 First Quarter Results
2022 FIRST QUARTER RESULTS
CNH Industrial reports solid first
quarter performance:
Consolidated revenues of $4.6 billion, (up 13.4% compared
to Q1 2021 for continuing operations)
Net income of $336 million, Adjusted Net Income of $378
million, with adjusted diluted EPS of $0.28, and
Adjusted EBIT of Industrial Activities of $429 million (up
$36 million compared to Q1 2021).
Seasonal free cash flow absorption of $1,059 million
(Industrial Activities) amid continued supply chain
disruptions.
Financial results presented under U.S. GAAP
“In our first quarter as a pure play
agricultural and construction equipment business, the CNH
Industrial team delivered a solid performance that demonstrates the
potential of a focused, customer-centric company. With redoubled
commitment to customer-inspired innovation, diligent operational
execution, and improved product quality spurring margin expansion,
we delivered net sales of Industrial Activities of nearly $4.2
billion, up 15% from last year on a constant currency basis.
Alongside favorable product mix, this resulted in adjusted gross
margin of 22.2%, up 60 basis points from Q1 2021 and adjusted EBIT
of industrial activities increased by more than 9% to $429M. Order
books remain exceptionally strong, up almost 40% in agriculture and
80% in construction, as demand remained healthy. Our thoughts are
with our employees, customers, and dealers directly impacted by the
war in Ukraine. We are all affected by the associated higher grain
prices, potential food shortages, and rising energy costs. Despite
these mostly unhelpful macro forces, we are maintaining our
original 2022 guidance. We did not plan for positive cash flow in
the first quarter, and as critical supply chain disruptions
constrained our ability to ship finished goods, we ended the
quarter with a cash outflow of $1.1 billion. Logistics pressures
and semiconductor shortages, which are not unique to CNH
Industrial, are expected to remain a headwind through the year, but
I am confident in our team’s ability to navigate the current
environment as evidenced by our results during the first quarter.
With a robust slate of new products to be introduced, strong early
returns from the Raven acquisition and our other Precision efforts,
and a dedicated, tested leadership team ready to execute our
ambitious plans, CNH Industrial is positioned to deliver on our
strategic priorities and our short-term objectives.”
Scott W. Wine, Chief
Executive Officer
2022 First Quarter Results
(all amounts $ million, comparison vs Q1 2021 continuing operations
- unless otherwise stated)
|
US-GAAP |
|
Q1 2022 |
PY(1) |
YOY Change |
Consolidated revenues |
4,645 |
4,096 |
+13% |
+15% |
c.c.(*) |
of
which Net sales of Industrial Activities |
4,180 |
3,694 |
+13% |
+15% |
c.c. |
Net income |
336 |
363 |
-27 |
|
|
Diluted EPS $ |
0.24 |
0.27 |
-0.03 |
|
|
Cash flow from operating activities |
(887) |
241 |
-1,128 |
|
|
Cash and cash equivalents(**) |
3,219 |
5,044 |
-1,825 |
|
|
Gross profit margin of Industrial Activities |
21.4% |
21.6% |
-20 bps |
|
|
|
|
|
|
|
|
NON-GAAP(2) |
|
Q1 2022 |
PY(1) |
YOY Change |
Adjusted EBIT of Industrial Activities |
429 |
393 |
+36 |
|
|
Adjusted EBIT Margin of Industrial Activities |
10.3% |
10.6% |
-0.30 bps |
|
|
Adjusted net income |
378 |
352 |
+26 |
|
|
Adjusted diluted EPS $ |
0.28 |
0.26 |
+0.02 |
|
|
Free cash flow of Industrial Activities |
(1,059) |
(13) |
-1,046 |
|
|
Available liquidity(**) |
9,399 |
10,521 |
-1,122 |
|
|
Adjusted gross margin of Industrial Activities |
22.2% |
21.6% |
+60 bps |
|
|
(*) c.c. means at constant currency (**)
comparison vs December 31, 2021
Net sales of Industrial
Activities of $4,180 million, up 13%
mainly due to favorable price realization.
Adjusted EBIT of Industrial
Activities of $429 million ($393 million
in Q1 2021), with both segments up year over year. Agriculture
adjusted EBIT margin above 12% and Construction at 4%.
Adjusted net income of
$378 million, with adjusted diluted
earnings per share of $0.28 (adjusted net
income of $352 million in Q1 2021, with adjusted diluted earnings
per share of $0.26). Adjusted net income in March 2022 excludes,
among other items, $71 million related to asset write-downs,
financial receivable allowances and valuation allowances on
deferred tax assets as a result of the suspension of operations in
Russia.
Adjusted gross profit margin of
Industrial Activities of 22.2%, up 0.6% from Q1 2021
primarily due to better mix and favorable price realization in
Agriculture.
Reported income tax expense of $159 million and
adjusted income tax expense(1) of $138
million, with adjusted effective tax rate
(adjusted ETR(1)) of 28%, which
reflects jurisdictional mix of pre-tax results and net discrete tax
charges.
Free cash flow of Industrial
Activities was negative $1.1 billion as a
result of higher than historical seasonal working capital cash
absorption primarily due to supply chain disruptions. Total Debt of
$21.3 billion at March 31, 2022 ($20.9 billion at December 31,
2021).
Industrial Activities
net
debt(1)
position at $2.1 billion, an increase of $960
million from December 31, 2021.
Available liquidity at $9,399
million as of March 31, 2022
|
Agriculture |
|
Q1 2022 |
Q1 2021(1) |
Change |
Change at c.c.(*) |
Net sales ($ million) |
3,377 |
3,038 |
+11% |
+13% |
Adjusted EBIT ($ million) |
426 |
399 |
+27 |
|
Adjusted EBIT margin |
12.6% |
13.1% |
-50 bps |
|
In North America, industry volume for tractor
was down 8% for under 140 HP, and up 9% for over 140 HP; combines
were down 22%. In Europe, Middle East and Africa (EMEA), tractor
and combine demand was down 8% and up 6%, respectively. South
America tractor demand was up 11% and combine demand was down 9%.
Asia Pacific tractor demand was down 14% and combine demand was up
10%.
Net sales were up 11%, mainly
due to favorable price realization and better mix, mostly driven by
the North America and South America regions.
Gross profit margin was 24.1%,
up 0.8% compared to Q1 2021, mainly due to better mix, favorable
price realization, and favorable manufacturing absorption primarily
in North America and South America, partially offset by supply
chain disruption costs in all regions.
Adjusted EBIT was $426 million
($399 million for Q1 2021), with Adjusted EBIT margin at 12.6% with
the $27 million increase driven by higher gross margin, partially
offset by higher labor cost, SG&A and R&D expenses.
Order book in Agriculture was
up almost 40% year over year for both tractors and combines, driven
by strong growth in North America and EMEA for tractors, and in
South America and EMEA for combines.
|
Construction |
|
Q1 2022 |
Q1 2021(1) |
Change |
Change at c.c.(*) |
Net sales ($ million) |
803 |
656 |
+22% |
+23% |
Adjusted EBIT ($ million) |
32 |
25 |
+7 |
|
Adjusted EBIT margin |
4.0% |
3.8% |
+20 bps |
|
Global industry volume for construction
equipment decreased in both Heavy and Light sub-segments, with
Heavy down 20% and Light down 14%, mostly driven by a 33% decrease
in Light and Heavy equipment demand for Asia Pacific, particularly
in China. Demand increased 4% in North America, 9% in EMEA and 30%
in South America.
Net sales were up 22%, as a
result of positive volumes due to higher industry demand in our
main markets, market share growth, and better price realization
primarily in North America and South America.
Gross profit margin was 13.3%,
down 1.0.% compared to Q1 2021, mainly due to supply chain
disruption costs, primarily raw materials, partially offset by
better mix and favorable price realization, in all regions.
Adjusted EBIT increased $7
million due to favorable volume and mix and positive price
realization, partially offset by higher purchasing costs. Adjusted
EBIT margin at 4.0%.
Construction order book up more
that 80% year over year in both Heavy and Light sub-segments, with
increases in all regions.
|
Financial Services |
|
Q1 2022 |
Q1 2021(1) |
Change |
Change at c.c.(*) |
Revenues ($ million) |
466 |
397 |
+17% |
+17% |
Net income ($ million) |
82 |
78 |
+4 |
|
Equity at quarter-end ($ million) |
2,254 |
2,120 |
+134 |
|
Retail loan originations ($ million) |
2,139 |
2,019 |
+5.9% |
|
Revenues were up 17% due to
higher used equipment sales, higher base rates in South America and
higher average portfolios in South America and EMEA, partially
offset by lower retail yields in North America.
Net income increased $4 million
to $82 million, primarily as a result of higher recoveries on used
equipment sales in North America, higher base rates in South
America, and higher average portfolios in South America and EMEA,
offset by additional risk costs due to the Eastern Europe
situation, including $15 million for domestic Russian receivables
which are considered an adjusting item for consolidated adjusted
net income.
The managed portfolio
(including unconsolidated joint ventures) was $20.8 billion at
the end of the quarter (of which retail was 73% and wholesale was
27%), up $1.3 billion compared to March 31, 2021 (up $1.0 billion
on a constant currency basis).
The receivable balance greater than 30
days past due as a percentage of receivables was 1.3%
(1.4% as of March 31, 2021).
2022 Outlook
The Company is confirming the following 2022
outlook for its Industrial Activities:
- Net
sales(***)
up between 10% and 14% year on year including currency translation
effects
- SG&A
expenses lower or equal to 7.5% of net sales
- Free
cash flow in excess of $1.0 billion
- R&D
expenses and capital expenditures at
around $1.4 billion
Notes
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.
(1) Effective January 1, 2022, the
Iveco Group business was separated from CNH Industrial N.V. by way
of a demerger under Dutch law to Iveco Group N.V. and Iveco Group
became a public listed company independent from CNH Industrial.
Accordingly, that business is presented as discontinued operations
beginning in the first quarter of 2022. The Company has
reclassified the financial results of Iveco Group to Net income
(loss) from discontinued operations in the Condensed Consolidated
Statements of Operations for all periods presented. The Company has
reclassified the related assets and liabilities as Assets held for
distribution and Liabilities held for distribution on the Condensed
Consolidated Balance Sheets as of December 31, 2021. Cash flows
from the Company’s discontinued operations are presented in the
Condensed Consolidated Statements of Cash Flows for all periods.
All comparative figures shown exclude the results of the
discontinued operations.
(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. 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.
(*) c.c. means at
constant currency.
(**) Certain
financial information in this report has been presented by
geographic area. Our geographical regions are: (1) North America;
(2) Europe, Middle East and Africa; (3) South America and (4) Asia
Pacific. The geographic designations have the following
meanings:
North America: United States, Canada, Mexico and
Puerto Rico, previously included in South America;
Europe, Middle East, and Africa (previously
Europe): member countries of the European Union, European Free
Trade Association, the United Kingdom, Ukraine, Balkans, Russia,
Turkey, the African continent, and the Middle East, previously
included in Rest of World;
South America: Central and South America, and
the Caribbean Islands; and
Asia Pacific (previously Rest of World):
Continental Asia, Oceania and member countries of the Commonwealth
of Independent States.
(***) Net sales reflecting the exchange rate of
1.15 EUR/USD
Non-GAAP Financial Information
CNH Industrial monitors its operations through
the use of several non-GAAP financial measures. CNH Industrial’s
management believes that these non-GAAP financial measures provide
useful and relevant information regarding its operating results and
enhance the readers’ ability to assess CNH Industrial’s financial
performance and financial position. Management uses these non-GAAP
measures to identify operational trends, as well as make decisions
regarding future spending, resource allocations and other
operational decisions as they provide additional transparency with
respect to our core operations. These non-GAAP financial measures
have no standardized meaning under U.S. GAAP or EU-IFRS and are
unlikely to 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 as
prepared in accordance with U.S. GAAP and/or EU-IFRS.
CNH Industrial’s non-GAAP financial measures are
defined as follows:
- Adjusted EBIT of
Industrial Activities under U.S. GAAP is defined as net income
(loss) before income taxes, Financial Services’ results, Industrial
Activities’ interest expenses, net, foreign exchange gains/losses,
finance and non-service component of pension and other
post-employment benefit costs, restructuring expenses, and certain
non-recurring items. In particular, non-recurring items are
specifically disclosed items that management considers rare or
discrete events that are infrequent in nature and not reflective of
on-going operational activities.
- Adjusted EBIT of
Industrial Activities under EU-IFRS: is defined as profit/(loss)
before taxes, Financial Services’ results, Industrial Activities’
financial expenses, restructuring costs, and certain non-recurring
items.
- Adjusted Net
Income (Loss): is defined as net income (loss), less restructuring
charges and non-recurring items, after tax.
- Adjusted Diluted
EPS: is computed by dividing Adjusted Net Income (loss)
attributable to CNH Industrial N.V. by a weighted-average number of
common shares outstanding during the period that takes into
consideration potential common shares outstanding deriving from the
CNH Industrial share-based payment awards, when inclusion is not
anti-dilutive. When we provide guidance for adjusted diluted EPS,
we do not provide guidance on a earnings per share basis because
the GAAP measure will include potentially significant items that
have not yet occurred and are difficult to predict with reasonable
certainty prior to year-end.
- Adjusted Income
Taxes: is defined as income taxes less the tax effect of
restructuring expenses and non-recurring items, and non-recurring
tax charges or benefits.
- Adjusted
Effective Tax Rate (Adjusted ETR): is computed by dividing a)
adjusted income taxes by b) income (loss) before income taxes and
equity in income of unconsolidated subsidiaries and affiliates,
less restructuring expenses and non-recurring items.
- Adjusted Gross
Profit Margin of Industrial Activities: is computed by dividing Net
sales less Cost of goods sold, as adjusted by non-recurring items,
by Net sales.
- Net Cash (Debt)
and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is
defined as total debt less intersegment notes receivable, cash and
cash equivalents, restricted cash, other current financial assets
(primarily current securities, short-term deposits and investments
towards high-credit rating counterparties) and derivative hedging
debt. CNH Industrial provides the reconciliation of Net Cash (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 Cash (Debt) of Industrial Activities.
- Free Cash Flow of
Industrial Activities (or Industrial Free Cash Flow): refers to
Industrial Activities only, and is computed as consolidated cash
flow from operating activities less: cash flow from operating
activities of Financial Services; investments of Industrial
Activities in assets sold under operating leases, property, plant
and equipment and intangible assets; change in derivatives hedging
debt of Industrial Activities; as well as other changes and
intersegment eliminations.
- Available
Liquidity: is defined as cash and cash equivalents plus restricted
cash, undrawn medium-term unsecured committed facilities, net
receivables/payables with Iveco Group N.V. and other current
financial assets (primarily current securities, short-term deposits
and investments in instruments of high-credit rating
counterparties).
- Change excl. FX
or Constant Currency: CNH Industrial discusses the fluctuations in
revenues on a constant currency basis by applying the prior year
average exchange rates to current year’s revenues expressed in
local currency in order to eliminate the impact of foreign exchange
rate fluctuations.
The tables attached to this press release
provide reconciliations of the non-GAAP measures used in this press
release to the most directly comparable GAAP measures.
Forward-looking statements
All statements other than statements of
historical fact contained in this earning release, including
competitive strengths; business strategy; future financial position
or operating results; budgets; projections with respect to revenue,
income, earnings (or loss) per share, capital expenditures,
dividends, liquidity, capital structure or other financial items;
costs; and plans and objectives of management regarding operations
and products, are forward-looking statements. Forward looking
statements also include statements regarding the future performance
of CNH Industrial and its subsidiaries on a standalone basis. These
statements may include terminology such as “may”, “will”, “expect”,
“could”, “should”, “intend”, “estimate”, “anticipate”, “believe”,
“outlook”, “continue”, “remain”, “on track”, “design”, “target”,
“objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”,
or similar terminology. Forward-looking statements, including those
related to the COVID-19 pandemic, 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 our control and are
difficult to predict. If any of these risks and uncertainties
materialize (or they occur with a degree of severity that the
Company is unable to predict) or other assumptions underlying any
of the forward-looking statements prove to be incorrect, including
any assumptions regarding strategic plans, 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 continued
uncertainties related to the unknown duration and economic,
operational and financial impacts of the global COVID-19 pandemic
and the actions taken or contemplated by governmental authorities
or others in connection with the pandemic on our business, our
employees, customers and suppliers; supply chain disruptions,
including delays caused by mandated shutdowns, industry capacity
constraints, material availability, and global logistics delays and
constraints; disruption caused by business responses to COVID-19,
including remote working arrangements, which may create increased
vulnerability to cybersecurity or data privacy incidents; our
ability to execute business continuity plans as a result of
COVID-19; the many interrelated factors that affect consumer
confidence and worldwide demand for capital goods and capital
goods-related products, including demand uncertainty caused by
COVID-19; general economic conditions in each of our markets,
including the significant economic uncertainty and volatility
caused by the war in the Ukraine and COVID-19; changes in
government policies regarding banking, monetary and fiscal policy;
legislation, particularly pertaining to capital goods-related
issues such as agriculture, the environment, debt relief and
subsidy program policies, trade and commerce and infrastructure
development; government policies on international trade and
investment, including sanctions, import quotas, capital controls
and tariffs; volatility in international trade caused by the
imposition of tariffs, sanctions, embargoes, and trade wars;
actions of competitors in the various industries in which we
compete; development and use of new technologies and technological
difficulties; the interpretation of, or adoption of new, compliance
requirements with respect to engine emissions, safety or other
aspects of our products; production difficulties, including
capacity and supply constraints and excess inventory levels; labor
relations; interest rates and currency exchange rates; inflation
and deflation; energy prices; prices for agricultural commodities;
housing starts and other construction activity; our ability to
obtain financing or to refinance existing debt; price pressure on
new and used equipment; the resolution of pending litigation and
investigations on a wide range of topics, including dealer and
supplier litigation, intellectual property rights disputes, product
warranty and defective product claims, and emissions and/or fuel
economy regulatory and contractual issues; security breaches,
cybersecurity attacks, technology failures, and other disruptions
to the information technology infrastructure of CNH Industrial and
its suppliers and dealers; security breaches with respect to our
products; our pension plans and other post-employment obligations;
political and civil unrest; volatility and deterioration of capital
and financial markets, including other pandemics, terrorist attacks
in Europe and elsewhere; our ability to realize the anticipated
benefits from our business initiatives as part of our strategic
plan; our failure to realize, or a delay in realizing, all of the
anticipated benefits of our acquisitions, joint ventures, strategic
alliances or divestitures and other similar risks and
uncertainties, and our success in managing the risks involved in
the foregoing.
Forward-looking statements are based upon
assumptions relating to the factors described in this earnings
release, which are sometimes based upon estimates and data received
from third parties. Such estimates and data are often revised.
Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many
of which are outside CNH Industrial’s control. CNH Industrial
expressly disclaims any intention or obligation to provide, update
or revise any forward-looking statements in this announcement to
reflect any change in expectations or any change in events,
conditions or circumstances on which these forward-looking
statements are based. Further information concerning CNH
Industrial, including factors that potentially could materially
affect CNH Industrial’s financial results, is included in CNH
Industrial’s reports and filings with the U.S. Securities and
Exchange Commission (“SEC”), the Autoriteit Financiële Markten
(“AFM”) and Commissione Nazionale per le Società e la Borsa
(“CONSOB”).
All future written and oral forward-looking
statements by CNH Industrial or persons acting on the behalf of CNH
Industrial are expressly qualified in their entirety by the
cautionary statements contained herein or referred to above.
Conference Call and Webcast
Today, at 3:30 p.m. CEST / 2:30 p.m. BST/ 9:30
a.m. EDT, management will hold a conference call to present first
quarter 2022 results to financial analysts and institutional
investors. The call can be followed live online at https://bit.ly/CNH_Industrial_Q1_2022 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.
London, May 3, 2022
CONTACTS
CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Operations for the
three months ended March 31, 2022 and 2021
(Unaudited,
U.S.-GAAP)
($ million)
|
Three Months Ended March 31, |
2022 |
2021 |
Revenues |
|
|
Net sales |
4,180 |
3,694 |
Finance, interest and other income |
465 |
402 |
TOTAL REVENUES |
4,645 |
4,096 |
Costs and Expenses |
|
|
Cost of goods sold |
3,286 |
2,896 |
Selling, general and administrative expenses |
378 |
319 |
Research and development expenses |
184 |
132 |
Restructuring expenses |
2 |
1 |
Interest expense |
138 |
153 |
Other, net |
183 |
142 |
TOTAL COSTS AND EXPENSES |
4,171 |
3,643 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
474 |
453 |
Income tax (expense) benefit |
(159) |
(116) |
Equity in income (loss) of unconsolidated subsidiaries and
affiliates |
21 |
26 |
Net income (loss) from continuing operations |
336 |
363 |
Net income (loss) from discontinued operations |
- |
62 |
NET INCOME (LOSS) |
336 |
425 |
Net income attributable to noncontrolling interests |
3 |
17 |
NET INCOME (LOSS) ATTRIBUTABLE TO CNH INDUSTRIAL N.V. |
333 |
408 |
|
|
|
Basic earnings (loss) per share attributable to common
shareholders (in $) |
|
|
Continuing operations |
0.24 |
0.27 |
Discontinued operations |
- |
0.03 |
Basic earnings per share attributable to CNH Industrial N.V. |
0.24 |
0.30 |
Diluted earnings (loss) per share attributable to common
shareholders (in $) |
|
|
Continuing operations |
0.24 |
0.27 |
Discontinued operations |
- |
0.03 |
Diluted earnings per share attributable to CNH Industrial N.V. |
0.24 |
0.30 |
Average shares outstanding (in millions) |
|
|
Basic |
1,356 |
1,354 |
Diluted |
1,362 |
1,359 |
Cash dividends declared per common share |
- |
- |
CNH INDUSTRIAL N.V.
Condensed Consolidated Balance Sheets as of March 31, 2022
and December 31, 2021
(Unaudited,
U.S.-GAAP)
($ million) |
|
March 31, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
3,219 |
|
5,044 |
Restricted cash |
|
842 |
|
801 |
Financing receivables, net |
|
16,083 |
|
15,376 |
Receivables from Iveco Group N.V. |
|
297 |
|
- |
Inventories, net |
|
5,427 |
|
4,216 |
Property, plant and equipment, net and equipment under operating
lease |
|
3,139 |
|
3,213 |
Intangible assets, net |
|
4,395 |
|
4,417 |
Other receivables and assets |
|
3,083 |
|
2,803 |
Assets held for distribution |
|
- |
|
13,546 |
TOTAL ASSETS |
|
36,485 |
|
49,416 |
LIABILITIES AND EQUITY |
|
|
|
|
Debt |
|
21,335 |
|
20,897 |
Payables to Iveco Group N.V. |
|
47 |
|
502 |
Other payables and liabilities |
|
9,447 |
|
9,272 |
Liabilities held for distribution |
|
- |
|
11,892 |
Total Liabilities |
|
30,829 |
|
42,563 |
Redeemable noncontrolling interest |
|
47 |
|
45 |
Equity |
|
5,609 |
|
6,808 |
TOTAL LIABILITIES AND EQUITY |
|
36,485 |
|
49,416 |
CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Cash Flows for the
three months ended March 31, 2022 and 2021
(Unaudited-
U.S.-GAAP)
|
Three Months Ended March 31, |
($ million) |
2022 |
2021 |
Net income (loss) |
336 |
425 |
Less: Net income (loss) of Discontinued Operations |
- |
62 |
Net income (loss) of Continuing Operations |
336 |
363 |
Adjustments to reconcile net income (loss) from Continuing
Operations to net cash provided by (used in) operating activities
from Continuing Operations: |
(1,223) |
(122) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS |
(887) |
241 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM
DISCONTINUED OPERATIONS |
- |
131 |
TOTAL NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
(887) |
372 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM CONTINUING
OPERATIONS |
(979) |
(317) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM
DISCONTINUED OPERATIONS |
- |
127 |
TOTAL NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
(979) |
(190) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES FROM CONTINUING
OPERATIONS |
65 |
(1,235) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES FROM
DISCONTINUED OPERATIONS |
- |
(359) |
TOTAL NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
65 |
(1,594) |
Effect of foreign exchange rate changes on cash and cash
equivalents and restricted cash |
17 |
(250) |
DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
(1,784) |
(1,662) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF
YEAR |
5,845 |
9,629 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
4,061 |
7,967 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
(Discontinued Operations) |
- |
529 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
(Continuing Operations) |
4,061 |
7,438 |
CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the three months
ended March 31, 2022 and 2021
(Unaudited,
U.S.-GAAP)
($
million)
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
Industrial
Activities(1) |
Financial Services |
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
Financial Services |
Eliminations |
|
Consolidated |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
4,180 |
- |
- |
|
4,180 |
|
3,694 |
- |
- |
|
3,694 |
|
Finance, interest and other income |
10 |
466 |
(11) |
(2) |
465 |
|
13 |
397 |
(8) |
(2) |
402 |
|
TOTAL REVENUES |
4,190 |
466 |
(11) |
|
4,645 |
|
3,707 |
397 |
(8) |
|
4,096 |
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
3,286 |
- |
- |
|
3,286 |
|
2,896 |
- |
- |
|
2,896 |
|
Selling, general and administrative expenses |
329 |
49 |
- |
|
378 |
|
286 |
33 |
- |
|
319 |
|
Research and development expenses |
184 |
- |
- |
|
184 |
|
132 |
- |
- |
|
132 |
|
Restructuring expenses |
2 |
- |
- |
|
2 |
|
1 |
- |
- |
|
1 |
|
Interest expense |
45 |
104 |
(11) |
(3) |
138 |
|
53 |
108 |
(8) |
(3) |
153 |
|
Other, net |
(17) |
200 |
- |
|
183 |
|
(13) |
155 |
- |
|
142 |
|
TOTAL COSTS AND EXPENSES |
3,829 |
353 |
(11) |
|
4,171 |
|
3,355 |
296 |
(8) |
|
3,643 |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
361 |
113 |
- |
|
474 |
|
352 |
101 |
- |
|
453 |
|
Income tax (expense) benefit |
(123) |
(36) |
- |
|
(159) |
|
(90) |
(26) |
- |
|
(116) |
|
Equity in income (loss) of unconsolidated subsidiaries and
affiliates |
16 |
5 |
- |
|
21 |
|
23 |
3 |
- |
|
26 |
|
NET INCOME (LOSS) Continuing Operations |
254 |
82 |
- |
|
336 |
|
285 |
78 |
- |
|
363 |
|
NET INCOME (LOSS) Discontinued Operations |
- |
- |
- |
|
- |
|
49 |
13 |
- |
|
62 |
|
NET INCOME (LOSS) |
254 |
82 |
- |
|
336 |
|
334 |
91 |
- |
|
425 |
|
Notes:
(1) Industrial Activities
represents the enterprise without Financial Services. Industrial
Activities includes the Company's Agriculture and Construction
segments, and other corporate assets, liabilities, revenues and
expenses not reflected within Financial Services.
(2) Elimination of Financial Services'
interest income earned from Industrial Activities.
(3) Elimination of Industrial Activities'
interest expense to Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Balance Sheets as of March 31, 2022 and
December 31, 2021
(Unaudited,
U.S.-GAAP)
|
March 31, 2022 |
December 31, 2021 |
($ million) |
Industrial
Activities(1) |
Financial Services |
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
Financial Services |
Eliminations |
|
Consolidated |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
2,698 |
521 |
- |
|
3,219 |
|
4,386 |
658 |
- |
|
5,044 |
Restricted cash |
157 |
685 |
- |
|
842 |
|
128 |
673 |
- |
|
801 |
Financing receivables, net |
431 |
16,411 |
(759) |
(2) |
16,083 |
|
199 |
15,508 |
(331) |
(2) |
15,376 |
Receivables from Iveco Group N.V. |
241 |
56 |
- |
|
297 |
|
- |
- |
- |
|
- |
Inventories, net |
5,409 |
18 |
- |
|
5,427 |
|
4,187 |
29 |
- |
|
4,216 |
Property, plant and equipment, net and equipment on operating
lease |
1,490 |
1,649 |
- |
|
3,139 |
|
1,504 |
1,709 |
- |
|
3,213 |
Intangible assets, net |
4,231 |
164 |
- |
|
4,395 |
|
4,255 |
162 |
- |
|
4,417 |
Other receivables and assets |
2,841 |
416 |
(174) |
(3) |
3,083 |
|
2,656 |
345 |
(198) |
(3) |
2,803 |
Assets held for distribution |
- |
- |
- |
|
- |
|
9,814 |
4,543 |
(811) |
|
13,546 |
TOTAL ASSETS |
17,498 |
19,920 |
(933) |
|
36,485 |
|
27,129 |
23,627 |
(1,340) |
|
49,416 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Debt |
5,572 |
16,522 |
(759) |
(2) |
21,335 |
|
5,485 |
15,743 |
(331) |
(2) |
20,897 |
Payables to Iveco Group N.V. |
4 |
43 |
- |
|
47 |
|
334 |
168 |
- |
|
502 |
Other payables and liabilities |
8,520 |
1,101 |
(174) |
(3) |
9,447 |
|
8,426 |
1,044 |
(198) |
(3) |
9,272 |
Liabilities held for distribution |
- |
- |
- |
|
- |
|
8,985 |
3,718 |
(811) |
|
11,892 |
Total Liabilities |
14,096 |
17,666 |
(933) |
|
30,829 |
|
23,230 |
20,673 |
(1,340) |
|
42,563 |
Redeemable noncontrolling interest |
47 |
- |
- |
|
47 |
|
45 |
- |
- |
|
45 |
Equity |
3,355 |
2,254 |
- |
|
5,609 |
|
3,854 |
2,954 |
- |
|
6,808 |
TOTAL LIABILITIES AND EQUITY |
17,498 |
19,920 |
(933) |
|
36,485 |
|
27,129 |
23,627 |
(1,340) |
|
49,416 |
Notes:
(1) Industrial
Activities represents the enterprise without Financial Services.
Industrial Activities includes the Company's Agriculture and
Construction segments, and other corporate assets, liabilities,
revenues and expenses not reflected within Financial
Services.
(2) This item includes the elimination of
receivables/payables between Industrial Activities and Financial
Services.
(3) This item primarily represents the
reclassification of deferred tax assets/liabilities in the same
taxing jurisdiction and elimination of intercompany activity
between Industrial Activities and Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Statements of Cash Flows for the three months
ended March 31, 2022 and 2021
(Unaudited-
U.S.-GAAP)
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
($ million) |
Industrial
Activities(1) |
Financial Services |
Eliminations(3) |
|
Consolidated |
|
Industrial
Activities(1) |
Financial Services |
Eliminations |
|
Consolidated |
|
Net income (loss) |
254 |
82 |
- |
|
336 |
|
334 |
91 |
- |
|
425 |
|
Less: Net income (loss) of Discontinued Operations |
- |
- |
- |
|
- |
|
49 |
13 |
- |
|
62 |
|
Net income (loss) of Continuing Operations |
254 |
82 |
- |
|
336 |
|
285 |
78 |
- |
|
363 |
|
Adjustments to reconcile net income (loss) from Continuing
Operations to net cash provided by (used in) operating activities
from Continuing Operations: |
(1,237) |
39 |
(25) |
(2) |
(1,223) |
|
(220) |
98 |
- |
|
(122) |
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS |
(983) |
121 |
(25) |
|
(887) |
|
65 |
176 |
- |
|
241 |
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM
DISCONTINUED OPERATIONS |
- |
- |
- |
|
- |
|
(165) |
298 |
(2) |
|
131 |
|
TOTAL NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
(983) |
121 |
(25) |
|
(887) |
|
(100) |
474 |
(2) |
|
372 |
|
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM CONTINUING
OPERATIONS |
(606) |
(373) |
- |
|
(979) |
|
(427) |
106 |
4 |
|
(317) |
|
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM
DISCONTINUED OPERATIONS |
- |
- |
- |
|
- |
|
68 |
57 |
2 |
|
127 |
|
TOTAL NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
(606) |
(373) |
- |
|
(979) |
|
(359) |
163 |
6 |
|
(190) |
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES FROM CONTINUING
OPERATIONS |
(62) |
102 |
25 |
|
65 |
|
(712) |
(519) |
(4) |
|
(1,235) |
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES FROM
DISCONTINUED OPERATIONS |
- |
- |
- |
|
- |
|
(24) |
(335) |
- |
|
(359) |
|
TOTAL NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(62) |
102 |
25 |
(4) |
65 |
|
(736) |
(854) |
(4) |
|
(1,594) |
|
Effect of foreign exchange rate changes on cash and cash
equivalents and restricted cash |
(8) |
25 |
- |
|
17 |
|
(227) |
(23) |
- |
|
(250) |
|
DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
(1,659) |
(125) |
- |
|
(1,784) |
|
(1,422) |
(240) |
- |
|
(1,662) |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF
YEAR |
4,514 |
1,331 |
- |
|
5,845 |
|
8,116 |
1,513 |
- |
|
9,629 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
2,855 |
1,206 |
|
|
4,061 |
|
6,694 |
1,273 |
|
|
7,967 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
(DISCONTINUED OPERATIONS) |
- |
- |
- |
|
- |
|
396 |
133 |
- |
|
529 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
(CONTINUING OPERATIONS) |
2,855 |
1,206 |
- |
|
4,061 |
|
6,298 |
1,140 |
- |
|
7,438 |
|
Notes:
(1) Industrial
Activities represents the enterprise without Financial Services.
Industrial Activities includes the Company's Agriculture and
Construction segments, and other corporate assets, liabilities,
revenues and expenses not reflected within Financial
Services.
(2) This item includes the elimination of
dividends from Financial Services to Industrial Activities, which
are included in Industrial Activities net cash used in operating
activities.
(3) This item includes the elimination of
certain minor activities between Industrial Activities and
Financial Services.
(4) This item includes the elimination of
paid in capital from Industrial Activities to Financial
Servicesz
Other Supplemental Financial Information
(Unaudited)
Reconciliation of Consolidated Net Income to Adjusted EBIT
of Industrial Activities by segment under U.S.-GAAP
($ million)
|
|
|
|
|
|
|
Three Months ended March 31, 2022 |
|
|
|
|
Agriculture |
Construction |
Unallocated items, eliminations and other |
Total |
|
|
|
Consolidated Net income |
|
|
|
336 |
|
|
|
Less: Consolidated Income tax (expense) benefit |
|
|
|
(159) |
|
|
|
Consolidated Income before taxes |
|
|
|
495 |
|
|
|
Less: Financial Services |
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
82 |
|
|
|
Financial Services Income taxes |
|
|
|
36 |
|
|
|
Add back of the following Industrial Activities
items: |
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
35 |
|
|
|
Foreign exchange (gains) losses, net |
|
|
|
13 |
|
|
|
Finance and non-service component of Pension
and other post-employment benefit
costs(1) |
|
|
|
(38) |
|
|
|
Adjustments for the following Industrial Activities
items: |
|
|
|
|
|
|
|
Restructuring expenses |
2 |
- |
- |
2 |
|
|
|
Other discrete
items(2) |
- |
- |
40 |
40 |
|
|
|
Adjusted EBIT of Industrial Activities |
426 |
32 |
(29) |
429 |
|
|
|
|
|
|
Three Months ended March 31, 2021 |
|
|
|
Agriculture |
Construction |
Unallocated items, eliminations and other |
Total |
|
|
Consolidated Net income (loss) |
|
|
|
425 |
|
|
Less: Consolidated Net Income (loss) of Discontinued
Operations |
|
|
|
62 |
|
|
Consolidated Net income (loss) of Continuing
Operations |
|
|
|
363 |
|
|
Less: Consolidated Income tax (expense) benefit |
|
|
|
(116) |
|
|
Consolidated Income (loss) before taxes (continuing
operations) |
|
|
|
479 |
|
|
Less: Financial Services |
|
|
|
|
|
|
Financial Services Net income |
|
|
|
78 |
|
|
Financial Services Income taxes |
|
|
|
26 |
|
|
Add back of the following Industrial Activities
items: |
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
40 |
|
|
Foreign exchange (gains) losses, net |
|
|
|
11 |
|
|
Finance and non-service component of Pension
and other post-employment benefit
costs(1) |
|
|
|
(34) |
|
|
Adjustments for the following Industrial Activities
items: |
|
|
|
|
|
|
Restructuring expenses |
2 |
(1) |
- |
1 |
|
|
Other discrete items(2) |
- |
- |
- |
- |
|
|
Adjusted EBIT of Industrial Activities |
399 |
25 |
(31) |
393 |
|
|
(1) In the three months ended March 31,
2022, this item includes the pre-tax gain of $30 million as a
result of the amortization over approximately 4.5 years of the $527
million positive impact from the 2018 modification of a healthcare
plan in the U.S. and a pre-tax gain of $6 million as a result of
the amortization over 4 years of the $101 million positive impact
from 2021 modifications of a healthcare plan in the U.S. In the
three months ended March 31, 2021, this item includes the pre-tax
gain of $30 million as a result of the 2018
modification.
(2) In the three months ended March 31,
2022, this item included $44 million of asset write-downs, $3.8
million of separation costs incurred in connection with our
spin-off of the Iveco Group Business and $7.8 million of income
from the two Raven businesses that are held for sale.
|
|
|
Other Supplemental Financial Information
(Unaudited)
Reconciliation of Total (Debt) to Net Cash (Debt) under
U.S.-GAAP
($ million)
|
|
|
|
|
Consolidated |
|
Industrial Activities |
|
Financial Services |
|
|
|
March 31,
2022 |
December 31,
2021 |
|
March 31,
2022 |
December 31,
2021 |
|
March 31,
2022 |
December 31,
2021 |
|
|
Third party (debt) |
(21,335) |
(20,897) |
|
(5,228) |
(5,335) |
|
(16,107) |
(15,562) |
|
|
Intersegment notes payable |
- |
- |
|
(344) |
(150) |
|
(415) |
(181) |
|
|
Payable to Iveco Group N.V.(4) |
(47) |
(3,986) |
|
(4) |
(3,764) |
|
(43) |
(222) |
|
|
Total
(Debt)(1) |
(21,382) |
(24,883) |
|
(5,576) |
(9,249) |
|
(16,565) |
(15,965) |
|
|
Cash and cash equivalents |
3,219 |
5,044 |
|
2,698 |
4,386 |
|
521 |
658 |
|
|
Restricted cash |
842 |
801 |
|
157 |
128 |
|
685 |
673 |
|
|
Intersegment notes receivable |
- |
- |
|
415 |
181 |
|
344 |
150 |
|
|
Receivables from Iveco Group N.V.(4) |
297 |
3,484 |
|
241 |
3,430 |
|
56 |
54 |
|
|
Other current financial assets(2) |
1 |
1 |
|
1 |
1 |
|
- |
- |
|
|
Derivatives hedging debt |
(22) |
(3) |
|
(22) |
(3) |
|
- |
- |
|
|
Net Cash
(Debt)(3) |
(17,045) |
(15,556) |
|
(2,086) |
(1,126) |
|
(14,959) |
(14,430) |
|
(1) Total (Debt) of Industrial Activities
includes Intersegment notes payable to Financial Services of $344
million and $150 million as of March 31, 2022 and December 31,
2021, respectively. Total (Debt) of Financial Services includes
Intersegment notes payable to Industrial Activities of $415 million
and $181 million as of March 31, 2022 and December 31,
2021, respectively.
(2) This item includes short-term deposits and
investments towards high-credit rating counterparties.
(3) The net intersegment receivable/(payable)
balance recorded by Financial Services relating to Industrial
Activities was $(71) million and $(31) million as of March 31,
2022 and December 31, 2021, respectively.
(4) For December 31, 2021, this item is shown
net on the CNH Industrial balance sheet. |
Reconciliation of Cash and cash equivalents to Available
liquidity under U.S.-GAAP
($ million)
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
Cash and cash equivalents |
|
3,219 |
|
|
5,044 |
|
|
Restricted cash |
|
842 |
|
|
801 |
|
|
Undrawn committed facilities |
|
5,087 |
|
|
5,177 |
|
|
Receivables from Iveco Group N.V. |
|
297 |
|
|
3,484 |
|
|
Payables to Iveco Group N.V. |
|
(47) |
|
|
(3,986) |
|
|
Other current financial
assets(1) |
|
1 |
|
|
1 |
|
|
Available liquidity |
|
9,399 |
|
|
10,521 |
|
|
(1) This item includes short-term deposits and
investments towards high-credit rating counterparties. |
Change in Net Cash (Debt) of Industrial Activities under
U.S.-GAAP
($ million) |
|
|
|
|
|
Three Months ended March 31, |
|
|
|
|
2022 |
|
2021 |
|
|
Net
Cash (Debt) of Industrial Activities at beginning of period |
|
(1,126) |
|
(893) |
|
|
Adjusted EBIT of Industrial Activities |
|
429 |
|
393 |
|
|
Depreciation and Amortization |
|
82 |
|
72 |
|
|
Depreciation of assets under operating leases |
|
1 |
|
- |
|
|
Cash
interest and taxes |
|
(120) |
|
(54) |
|
|
Changes
in provisions and similar(1) |
|
(99) |
|
(29) |
|
|
Change
in working capital |
|
(1,296) |
|
(332) |
|
|
Operating cash flow of Industrial Activities – Continuing
operations |
|
(1,003) |
|
50 |
|
|
Investments in property, plant and equipment, and intangible
assets |
|
(53) |
|
(36) |
|
|
Other
changes |
|
(3) |
|
(27) |
|
|
Free cash flow of Industrial Activities – Continuing
operations |
|
(1,059) |
|
(13) |
|
|
Capital
increases and dividends(3) |
|
(21) |
|
(1) |
|
|
Currency translation differences and other(2) |
|
120 |
|
219 |
|
|
Change in Net Cash (Debt) of Industrial Activities –
Continuing operations |
|
(960) |
|
205 |
|
|
Net
Cash (Debt) of Industrial Activities at end of period |
|
(2,086) |
|
(688) |
|
|
(1) Including other cash flow items related to operating
lease.
(2) In the three months ended March 31, 2021, this item also
includes the charge of $8 million related to the repurchase of
Notes.
(3) In the three months ended March 31, 2022, this item also
includes share buy-back transactions. |
Change in Net Cash (Debt) of Industrial Activities under
U.S.-GAAP
($ million)
|
|
|
|
Three Months ended March 31, |
|
|
|
|
2022 |
|
2021 |
|
|
Net Cash (Debt) of Industrial Activities at beginning of
period |
|
(1,126) |
|
(893) |
|
|
Adjusted EBIT of Industrial Activities |
|
429 |
|
393 |
|
|
Depreciation and Amortization |
|
82 |
|
72 |
|
|
Depreciation of assets under operating leases |
|
1 |
|
- |
|
|
Cash interest and taxes |
|
(120) |
|
(54) |
|
|
Changes in provisions and similar(1) |
|
(99) |
|
(29) |
|
|
Change in working capital |
|
(1,296) |
|
(332) |
|
|
Operating cash flow of Industrial Activities – Continuing
operations |
|
(1,003) |
|
50 |
|
|
Investments in property, plant and equipment, and intangible
assets |
|
(53) |
|
(36) |
|
|
Other changes |
|
(3) |
|
(27) |
|
|
Free cash flow of Industrial Activities – Continuing
operations |
|
(1,059) |
|
(13) |
|
|
Capital increases and dividends(3) |
|
(21) |
|
(1) |
|
|
Currency translation differences and
other(2) |
|
120 |
|
219 |
|
|
Change in Net Cash (Debt) of Industrial Activities –
Continuing operations |
|
(960) |
|
205 |
|
|
Net Cash (Debt) of Industrial Activities at end of period |
|
(2,086) |
|
(688) |
|
|
(1) Including other cash flow items related to
operating lease.
(2) In the three months ended March 31, 2021, this
item also includes the charge of $8 million related to the
repurchase of Notes.
(3) In the three months ended March 31, 2022, this
item also includes share buy-back transactions.
|
Other Supplemental Financial Information
(Unaudited)
Reconciliation of Net cash provided by (used in) Operating
Activities
to Free cash flow of Industrial Activities under
U.S.-GAAP
($ million)
|
|
|
|
|
|
Three Months ended March 31, |
|
|
|
|
2022 |
|
2021 |
|
|
Net cash provided by (used in) Operating Activities
(Continuing Operations) |
|
(887) |
|
241 |
|
|
Less: Cash flows from Operating Activities of Financial Services
net of eliminations |
|
(96) |
|
(176) |
|
|
Change in derivatives hedging debt of Industrial Activities and
other |
|
(18) |
|
(12) |
|
|
Investments in assets sold under
operating lease assets of Industrial Activities |
|
(2) |
|
(3) |
|
|
Operating cash flow of Industrial Activities |
|
(1,003) |
|
50 |
|
|
Investments in property, plant and equipment,
and intangible assets of Industrial Activities |
|
(53) |
|
(36) |
|
|
Other changes(1) |
|
(3) |
|
(27) |
|
|
Free cash flow of Industrial Activities |
|
(1,059) |
|
(13) |
|
|
(1) This item primarily includes change in
intersegment financial receivables and capital increases in
intersegment investments. |
Reconciliation of Adjusted net income and Adjusted income
tax (expense) benefit to Net income (loss) and
Income tax (expense) benefit and calculation of Adjusted
diluted EPS and Adjusted ETR under U.S.-GAAP
($ million, except per share data)
|
|
|
|
|
|
Three Months ended March 31, |
|
|
|
|
|
2022 |
2021 |
|
|
Net income (loss) – Continuing Operations |
336 |
363 |
|
|
Adjustments impacting Income (loss) before income tax (expense)
benefit and equity in income of unconsolidated subsidiaries and
affiliates (a) |
21 |
(21) |
|
|
Adjustments impacting Income tax (expense) benefit (b) |
21 |
10 |
|
|
Adjusted net income (loss) |
378 |
352 |
|
|
Adjusted net income (loss) attributable to CNH Industrial N.V. |
375 |
349 |
|
|
Weighted average shares outstanding – diluted (million) |
1,362 |
1,359 |
|
|
Adjusted diluted EPS ($) |
0.28 |
0.26 |
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income tax
(expense) benefit and equity in income of unconsolidated
subsidiaries and affiliates |
474 |
453 |
|
|
Adjustments impacting Income (loss) before income tax (expense)
benefit and equity in income of unconsolidated subsidiaries and
affiliates (a) |
21 |
(21) |
|
|
Adjusted income (loss) from continuing operations before
income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and affiliates
(A) |
495 |
432 |
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
(159) |
(116) |
|
|
Adjustments impacting Income tax (expense) benefit (b) |
21 |
10 |
|
|
Adjusted income tax (expense) benefit (B) |
(138) |
(106) |
|
|
|
XX |
|
|
|
|
|
Adjusted Effective Tax Rate (Adjusted ETR)
(C=B/A) |
28% |
25% |
|
|
|
|
|
|
|
|
|
a) Adjustments impacting Income (loss) from
continuing operations before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and
affiliates |
|
|
Restructuring expenses |
2 |
1 |
|
|
Loss on repurchase of notes |
- |
8 |
|
|
Pre-tax gain related to the 2018 modification of a healthcare plan
in the U.S. |
(30) |
(30) |
|
|
Pre-tax gain related to the 2021 modification of a healthcare plan
in the U.S. |
(6) |
- |
|
|
Asset write-down: Industrial Activities, Russia Operations |
44 |
- |
|
|
Asset write-down: Financial Services, Russia Operations |
15 |
|
|
|
Spin related costs |
4 |
|
|
|
Raven income from segments held for sale |
(8) |
|
|
|
Total |
21 |
(21) |
|
|
|
|
|
|
|
|
|
b) Adjustments impacting Income tax (expense)
benefit |
|
|
Tax effect of adjustments impacting Income (loss) before income tax
(expense) benefit and equity in income of unconsolidated
subsidiaries and affiliates(1) |
22 |
7 |
|
|
Other |
(1) |
3 |
|
|
Total |
21 |
10 |
|
(1) Includes $12 million of increase to the
valuation allowances on historical deferred tax assets as a result
of the suspension of operations in Russia. |
Other Supplemental Financial Information
(Unaudited)
Reconciliation of Adjusted gross profit to gross profit
under U.S.-GAAP
($ million,) |
|
|
|
|
|
|
Three Months ended March 31, |
|
|
|
|
|
2022 |
2021 |
|
|
Net Sales (A) |
4,180 |
3,694 |
|
|
Cost of goods sold |
3,286 |
2,896 |
|
|
Gross profit (B) |
894 |
798 |
|
|
Asset write down (Russia operations) |
34 |
- |
|
|
Adjusted gross profit (C) |
928 |
798 |
|
|
|
|
|
|
|
|
|
Gross profit margin (B ÷ A) |
21.4% |
21.6% |
|
|
Adjusted gross profit margin (C ÷ A) |
22.2% |
21.6% |
|
|
Revenues by Segment under EU-IFRS
($ million)
|
|
|
|
|
Three Months ended March 31, |
|
|
2022 |
2021 |
% change |
|
|
Agriculture |
3,377 |
3,039 |
11.1% |
|
|
Construction |
803 |
656 |
22.4% |
|
|
Eliminations and other |
- |
- |
- |
|
|
Total Industrial Activities of Continuing
Operations |
4,180 |
3,695 |
13.1% |
|
|
Financial Services |
465 |
396 |
17.4% |
|
|
Eliminations and other |
(8) |
(5) |
60.0% |
|
|
Total of Continuing Operations |
4,637 |
4,086 |
13.5% |
|
|
|
Adjusted EBIT of Industrial
Activities(1)
by Segment under EU-IFRS
($ million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended March 31, |
|
|
2022 |
2021 |
$ change |
2022 adjusted EBIT margin |
2021 adjusted EBIT margin |
|
|
Agriculture |
421 |
390 |
31 |
12.5% |
12.8% |
|
|
Construction |
30 |
24 |
6 |
3.7% |
3.7% |
|
|
Unallocated items, eliminations and other |
(30) |
(34) |
4 |
- |
- |
|
|
Adjusted EBIT of Industrial Activities of Continuing
Operations |
421 |
380 |
41 |
10.1% |
10.3% |
|
|
(1) 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. |
|
Other Supplemental Financial Information
(Unaudited)
Other key data under EU-IFRS
($ million)
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
Total Assets |
37,272 |
|
|
51,122 |
|
|
Total Equity |
6,258 |
|
|
8,426 |
|
|
Equity attributable to CNH Industrial N.V. |
6,251 |
|
|
8,393 |
|
|
Net Cash (Debt) of Continuing Operations |
(17,454) |
|
|
(15,840) |
|
|
Net Cash (Debt) of Discontinued Operations |
- |
|
|
(1,480) |
|
|
Net Cash (Debt) of CNH Industrial |
(17,454) |
|
|
(17,320) |
|
|
of which Net Cash (Debt) of Industrial
Activities(1) of
Continuing Operations |
(2,452) |
|
|
(1,374) |
|
|
of which Net Cash (Debt) of Industrial
Activities(1) of
Discontinued Operations |
- |
|
|
1,204 |
|
|
of which Net Cash (Debt) of Industrial
Activities(1) |
(2,452) |
|
|
(170) |
|
|
Net Income of Financial Services of Continuing
Operations |
73 |
|
|
357 |
|
|
Net Income of Financial Services of Discontinued
Operations |
- |
|
|
71 |
|
|
Net Income of Financial Services of CNH Industrial
Pre-Demerger |
73 |
|
|
428 |
|
|
(1) 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. |
|
Net income (loss) reconciliation U.S. GAAP to
EU-IFRS
($ million) |
|
|
|
|
|
Three Months ended March 31, |
|
|
|
|
2022 |
|
2021 |
|
|
Net income (loss) in accordance with U.S.
GAAP |
336 |
336 |
|
363 |
|
|
Adjustments to conform with EU-IFRS: |
|
|
|
|
|
|
Development costs |
(7) |
(7) |
|
(11) |
|
|
Other adjustments(1) |
(52) |
(52) |
|
(31) |
|
|
Tax impact on adjustments and other income tax differences |
11 |
11 |
|
10 |
|
|
Total adjustments |
(48) |
(48) |
|
(32) |
|
|
Profit (loss) in accordance with EU-IFRS |
288 |
288 |
|
331 |
|
|
This item also includes the different accounting impacts from
the modifications of a healthcare plan in the U.S. |
Total Equity reconciliation U.S. GAAP to
EU-IFRS
($ million) |
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
Total Equity under U.S. GAAP |
|
5,609 |
|
6,808 |
|
|
Adjustments to conform with EU-IFRS: |
|
|
|
|
|
|
Development costs |
|
783 |
|
2,058 |
|
|
Other adjustments |
|
41 |
|
28 |
|
|
Tax impact on adjustments and other income tax differences |
|
(175) |
|
(468) |
|
|
Total adjustments |
|
649 |
|
1,618 |
|
|
Total Equity under EU-IFRS |
|
6,258 |
|
8,426 |
|
|
|
Other Supplemental Financial Information
(Unaudited)
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:
|
Three Months Ended March 31, 2022 |
|
|
|
Three Months Ended March 31, 2021 |
|
Average |
At March 31, |
|
At December 31, 2021 |
|
Average |
At March 31, |
Euro |
0.892 |
0.901 |
|
0.883 |
|
0.830 |
0.853 |
Pound sterling |
0.746 |
0.762 |
|
0.742 |
|
0.725 |
0.727 |
Swiss franc |
0.924 |
0.925 |
|
0.912 |
|
0.906 |
0.944 |
Polish zloty |
4.121 |
4.192 |
|
4.059 |
|
3.773 |
3.967 |
Brazilian real |
5.233 |
4.775 |
|
5.571 |
|
5.477 |
5.749 |
Canadian dollar |
1.267 |
1.252 |
|
1.271 |
|
1.266 |
1.261 |
Turkish lira |
13.972 |
14.667 |
|
13.450 |
|
7.400 |
8.294 |
Condensed Consolidated
Income Statement for
the three months ended
March 31, 2022 and 2021
(Unaudited,
EU-IFRS)
Three Months Ended
March 31, |
($ million) |
2022 |
2021 |
Net revenues |
4,637 |
4,086 |
Cost of sales |
3,609 |
3,159 |
Selling, general and administrative costs |
358 |
309 |
Research and development costs |
193 |
144 |
Result from investments: |
|
|
Share of the profit/(loss) of investees accounted for using the
equity method |
22 |
26 |
Restructuring costs |
2 |
1 |
Other income/(expenses) |
(9) |
(13) |
Financial income/(expenses) |
(52) |
(49) |
PROFIT/(LOSS) BEFORE TAXES |
436 |
437 |
Income tax (expense) benefit |
(148) |
(106) |
PROFIT/(LOSS) FROM CONTINUING OPERATIONS |
288 |
331 |
PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
- |
82 |
PROFIT/(LOSS) FOR THE PERIOD |
288 |
413 |
|
|
|
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS
ATTRIBUTABLE TO: |
|
|
Owners of the parent |
285 |
328 |
Non-controlling interests |
3 |
3 |
(in $) |
|
|
BASIC EARNINGS/(LOSS) PER COMMON SHARE |
0.21 |
0.29 |
Basic earnings/(loss) per common share from continuing
operations |
0.21 |
0.24 |
DILUTED EARNINGS/(LOSS) PER COMMON SHARE |
0.21 |
0.29 |
Diluted earnings/(loss) per common share from continuing
operations |
0.21 |
0.24 |
Notes:
(*) The 2021 data
have been re-presented
following the classification of
the Iveco Group Business
as Discontinued Operations for
the quarter ended March
31, 2021, as requested
by the IFRS 5 - Non-current
assets held for sale and discontinued
operations.
Condensed Consolidated
Statement of
Financial Position
as of March 31, 2022
and December 31,
2021
(Unaudited,
EU-IFRS)
($ million) |
March 31,
2022 |
December 31,
2021 |
ASSETS |
|
|
Intangible assets |
5,129 |
5,159 |
Property, plant and equipment and Leased assets |
3,356 |
3,435 |
Inventories |
5,456 |
4,228 |
Receivables from financing activities |
16,442 |
15,443 |
Cash and cash equivalents |
4,061 |
5,845 |
Other receivables and assets |
2,828 |
2,535 |
Assets held for distribution(*) |
- |
14,477 |
TOTAL ASSETS |
37,272 |
51,122 |
EQUITY AND LIABILITIES |
|
|
Issued capital and reserves attributable to owners of the
parent |
6,251 |
8,393 |
Non-controlling interests |
7 |
33 |
Total Equity |
6,258 |
8,426 |
Debt |
21,648 |
21,689 |
Other payables and liabilities |
9,366 |
9,148 |
Liabilities held for distribution(*) |
- |
11,859 |
Total Liabilities |
31,014 |
42,696 |
TOTAL EQUITY AND
LIABILITIES |
37,272 |
51,122 |
Condensed Consolidated
Statement of Cash
Flows for the three
months ended March
31, 2022 and
2021
(Unaudited,
EU-IFRS)
($ million) |
March 31, 2022 |
March 31, 2021 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR |
5,845 |
9,629 |
Profit/(loss) from Continuing Operations |
288 |
331 |
Adjustment to reconcile profit/(loss) from Continuing Operation to
cash flows from/(used in) operating activities from Continuing
Operations |
(1,132) |
(26) |
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES FROM CONTINUING
OPERATIONS |
(844) |
305 |
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES FROM DISCONTINUED
OPERATIONS |
- |
(230) |
TOTAL |
(844) |
75 |
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES FROM CONTINUING
OPERATIONS |
(1,081) |
(386) |
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES FROM DISCONTINUED
OPERATIONS |
- |
500 |
TOTAL |
(1,081) |
114 |
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES FROM CONTINUING
OPERATIONS |
125 |
(1,233) |
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES FROM DISCONTINUED
OPERATIONS |
- |
(366) |
TOTAL |
125 |
(1,599) |
Translation exchange differences |
16 |
(252) |
TOTAL CHANGE IN CASH AND CASH EQUIVALENTS |
(1,784) |
(1,662) |
Less:
CASH AND EQUIVALENTS AT END OF THE PERIOD – INCLUDED WITHIN ASSETS
HELD FOR DISTRUBUTION AT THE END OF THE PERIOD |
- |
529 |
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD |
4,061 |
7,438 |
Grafico Azioni CNH Industrial NV (BIT:CNHI)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni CNH Industrial NV (BIT:CNHI)
Storico
Da Apr 2023 a Apr 2024