CNH Industrial closed 2015 first quarter with revenues of $6.0 billion, operating profit of Industrial Activities of $223 million, and net income of $23 million.
LONDON, April 30, 2015 /PRNewswire/ --
Financial results under U.S. GAAP(*) (**)
- First quarter revenues totaled $6.0 billion, down 11% compared to Q1 2014 on a constant currency basis (down 21% on a reported basis). Net sales of Industrial Activities were $5.6 billion, down 12% compared to Q1 2014 on a constant currency basis (down 22% on a reported basis).
- Operating profit of Industrial Activities for the quarter was $223 million ($412 million in Q1 2014), with operating margin at 4.0% (5.7% in Q1 2014).
- Selling, general and administrative expenses were $567 million, down $185 million compared to Q1 2014.
- Net income was $23 million, or $0.02 per share. Net income before restructuring and other exceptional items was $33 million (or $0.02 per share), down $144 million compared to Q1 2014.
- Net industrial debt was $3.1 billion at March 31, 2015 ($2.7 billion at December 31, 2014). Available liquidity totaled $7.2 billion ($8.9 billion at December 31, 2014).
- Full year guidance confirmed reflecting current currency exchange rates as follows: net sales of Industrial Activities in the range of $26-27 billion, with operating margin of Industrial Activities held at 6.1% to 6.4% and net industrial debt expected between $2.1 billion and $2.3 billion at year end.
(*) |
CNH Industrial reports quarterly and annual consolidated financial results under U.S. GAAP and IFRS. The following tables and discussion related to the financial results of the Company and its segments are prepared in accordance with U.S. GAAP. Financial results under IFRS are shown in specific tables at the end of this press release. |
(**) |
Refer to the Non-GAAP Financial Information section of this press release for information regarding Non-GAAP financial measures. |
CNH INDUSTRIAL |
|||||||
1st Quarter |
|||||||
2015 |
2014 |
Change |
|||||
Revenues |
5,960 |
7,540 |
-21.0% |
||||
Net income |
23 |
101 |
-78 |
||||
Net income before restructuring and other exceptional items |
33 |
177 |
-144 |
||||
Net income attributable to CNH Industrial N.V. |
22 |
100 |
-78 |
||||
Basic EPS ($) |
0.02 |
0.07 |
-0.05 |
||||
Diluted EPS ($) |
0.02 |
0.07 |
-0.05 |
||||
Basic EPS before restructuring and other exceptional items ($) |
0.02 |
0.13 |
-0.11 |
||||
CNH INDUSTRIAL |
|||||||
1st Quarter |
|||||||
2015 |
2014 |
Change |
|||||
Net sales of Industrial Activities |
5,625 |
7,213 |
-22.0% |
||||
Operating profit of Industrial Activities (2) |
223 |
412 |
-189 |
||||
Operating margin of Industrial Activities (%) |
4.0 |
5.7 |
-1.7 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 $5,960 million for the first quarter 2015, a decrease of 11.1% compared to Q1 2014 on a constant currency basis (down 21.0% on a reported basis). Net sales of Industrial Activities were $5,625 million in Q1 2015, down 11.9% compared to Q1 2014 on a constant currency basis (down 22.0% on a reported basis). Net of the negative impact of currency translation, net sales increased for Commercial Vehicles (+5.6%), mainly driven by positive volume and mix in EMEA offsetting challenging trading conditions in LATAM. This increase was more than offset by the forecasted decline in Agricultural Equipment, due to unfavorable industry volume and mix in all regions primarily in the row crop sector of the business, in Construction Equipment, due to negative volume and mix primarily in LATAM, and in Powertrain, due to lower sales to captive customers.
CNH INDUSTRIAL |
|||||||||
Revenues |
Operating profit/(loss) (1) |
||||||||
2015 |
2014 |
% change |
2015 |
2014 |
Change |
||||
2,577 |
3,706 |
-30.5 |
Agricultural Equipment |
204 |
464 |
-260 |
|||
602 |
774 |
-22.2 |
Construction Equipment |
0 |
3 |
-3 |
|||
2,037 |
2,308 |
-11.7 |
Commercial Vehicles |
1 |
(70) |
71 |
|||
901 |
1,201 |
-25.0 |
Powertrain |
36 |
34 |
2 |
|||
(492) |
(776) |
- |
Eliminations and other |
(18) |
(19) |
1 |
|||
5,625 |
7,213 |
-22.0 |
Total of Industrial Activities |
223 |
412 |
-189 |
|||
413 |
440 |
-6.1 |
Financial Services |
129 |
134 |
-5 |
|||
(78) |
(113) |
- |
Eliminations and other |
(68) |
(80) |
12 |
|||
5,960 |
7,540 |
-21.0 |
Total |
284 |
466 |
-182 |
|||
(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. |
|||||||||
Operating profit of Industrial Activities was $223 million in Q1 2015, a 39.4% decrease compared to Q1 2014 on a constant currency basis (down 45.9% on a reported basis), with an operating margin at 4.0% (5.7% for Q1 2014). Operating profit declined in Agricultural Equipment, driven by negative volume and mix including negative industrial absorption as a result of forecasted inventory balancing measures, partially offset by positive net price realization, purchasing efficiencies and positive contribution from structural cost reductions. Commercial Vehicles' operating result improved due to favorable volume and mix and cost reductions in selling, general and administrative ("SG&A") expenses. Powertrain operating profit improved mainly due to positive product mix, industrial efficiencies and SG&A expense reduction. Construction Equipment reported breakeven operating profit, substantially flat compared to Q1 2014, as unfavorable volume and mix, mainly in heavy equipment in LATAM, were offset by structural cost containment actions implemented last year.
CNH INDUSTRIAL |
||||||
1st Quarter |
||||||
2015 |
2014 |
|||||
Total Operating Profit |
284 |
466 |
||||
Restructuring expenses |
12 |
12 |
||||
Interest expenses of Industrial Activities, net of interest income and eliminations |
106 |
141 |
||||
Other, net |
(75) |
(94) |
||||
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates |
91 |
219 |
||||
Income taxes |
77 |
143 |
||||
Equity in income of unconsolidated subsidiaries and affiliates |
9 |
25 |
||||
Net income |
23 |
101 |
||||
Restructuring expenses totaled $12 million for the first quarter, in line with Q1 2014, and mainly relate to actions in Agricultural Equipment and Commercial Vehicles as per the Company's Efficiency Program launched in 2014.
Interest expense, net totaled $106 million for the quarter, a decrease of $35 million compared to Q1 2014, primarily due to lower cost of funding.
Other, net was a charge of $75 million for the quarter (charge of $94 million for Q1 2014) and mainly includes foreign exchange losses. In Q1 2014, Other, net included a pre-tax charge of $64 million due to the re-measurement of Venezuelan assets denominated in Bolivars following the changes in Venezuela's exchange rate mechanism.
Income taxes totaled $77 million, representing an effective tax rate of 84.6% for Q1 2015 (65.3% in Q1 2014). This tax rate for the quarter is mainly due to not recording deferred tax assets on losses in certain jurisdictions. For the full year 2015, the Company expects an effective tax rate within a 40% to 43% range.
Equity in income of unconsolidated subsidiaries and affiliates totaled $9 million for the quarter compared to $25 million recorded in Q1 2014. The decrease was due to lower results of joint ventures in APAC.
Net income of Financial Services was $85 million for the quarter, in line with Q1 2014.
Consolidated net income was $23 million for the quarter ($101 million for Q1 2014), or $0.02 per share ($0.07 per share for Q1 2014). Net income before restructuring and other exceptional items (a non-GAAP measure) was $33 million for the quarter ($177 million in Q1 2014), or $0.02 per share ($0.13 per share in Q1 2014).
Net industrial debt of $3.1 billion at March 31, 2015 was $0.4 billion higher than at December 31, 2014. Compared to Q1 2014, net industrial cash flow has improved by $0.8 billion, due to lower seasonal increase in net-working capital and a 38% reduction in capital expenditure.
Available liquidity at March 31, 2015 was $7.2 billion ($8.9 billion at December 31, 2014), inclusive of $2.7 billion in undrawn committed facilities ($2.7 billion at December 31, 2014).
Agricultural Equipment
AGRICULTURAL EQUIPMENT |
||||||||
1st Quarter |
||||||||
2015 |
2014 |
Change |
||||||
Net sales |
2,577 |
3,706 |
-30.5% |
|||||
Operating profit |
204 |
464 |
-260 |
|||||
Operating margin (%) |
7.9 |
12.5 |
-4.6 p.p. |
|||||
Agricultural Equipment registered net sales of $2,577 million for the quarter, down 23.9% compared to Q1 2014 on a constant currency basis (down 30.5% on a reported basis), as a result of unfavorable industry volume and mix in all regions primarily in the row crop sector. The geographic distribution of net sales for the period was 45% NAFTA, 32% EMEA, 12% LATAM and 11% APAC.
Worldwide agricultural equipment industry unit sales were down 14% for tractors and down 26% for combines. In our key product segments within NAFTA, the over 140 hp tractor segment was down 26%, and combine demand was down 44%. Smaller hp tractors in NAFTA were slightly positive, with the under 40 hp segment up 2%, and the 40-140 hp segment up 4%. In LATAM, tractor and combine markets decreased 10% and 35%, respectively. EMEA markets were down 14% for tractors and 8% for combines. APAC markets decreased 17% for tractors and 19% for combines.
Agricultural Equipment's worldwide market share performance was up for both tractors and combines. For tractors, our market share was down in LATAM as a result of destocking, and up or flat in all other regions. For combines, our market share was down in APAC, but increased in all other regions.
In Q1 2015, Agricultural Equipment's worldwide unit production was 4% above retail sales in support of the expected seasonal increase in demand from dairy and livestock customers. In row crop related products comparable production units were cut significantly with production for worldwide combine and high horsepower tractors in NAFTA down 40% versus last year as part of the Company's efforts to balance inventory with forecasted demand.
Agricultural Equipment's operating profit was $204 million for the quarter ($464 million in Q1 2014). Operating margin decreased 4.6 p.p. to 7.9% (12.5% in Q1 2014), driven by negative volume and mix including negative industrial absorption, with production hours declining nearly 40% in NAFTA and LATAM, partially offset by net positive price realization, purchasing efficiencies and a positive contribution from structural cost reductions.
Construction Equipment
CONSTRUCTION EQUIPMENT |
||||||||
1st Quarter |
||||||||
2015 |
2014 |
Change |
||||||
Net sales |
602 |
774 |
-22.2% |
|||||
Operating profit/(loss) |
0 |
3 |
-3 |
|||||
Operating margin (%) |
0.0 |
0.4 |
-0.4 p.p. |
|||||
Construction Equipment registered net sales of $602 million for the quarter, down 16.9% compared with Q1 2014 on a constant currency basis (down 22.2% on a reported basis), due to negative volume and mix primarily in LATAM. The geographic distribution of net sales for the period was 53% NAFTA, 21% EMEA, 17% LATAM and 9% APAC.
In Q1 2015, Construction Equipment's worldwide heavy and light industry sales were down 19% and 4%, respectively. Industry heavy and light equipment sales were up in NAFTA and EMEA, but down in LATAM and APAC. Construction Equipment's worldwide market share was mainly in line with prior year for heavy and light construction equipment in all regions except for LATAM, where municipality-driven demand declined significantly.
Construction Equipment's worldwide production levels were 36% above retail sales, in support of the seasonal increase expected in NAFTA and EMEA.
Construction Equipment reported breakeven operating profit compared to $3 million gain for Q1 2014, as improved profits in NAFTA and EMEA and a reduction of structural costs were able to offset the negative effects of the challenging trading conditions in LATAM.
Commercial Vehicles
COMMERCIAL VEHICLES |
||||||||
1st Quarter |
||||||||
2015 |
2014 |
Change |
||||||
Net sales |
2,037 |
2,308 |
-11.7% |
|||||
Operating profit/(loss) |
1 |
(70) |
71 |
|||||
Operating margin (%) |
0.0 |
(3.0) |
3.0 p.p. |
|||||
Commercial Vehicles posted first quarter net sales of $2,037 million, up 5.6% compared to Q1 2014 on a constant currency basis (down 11.7% on a reported basis) primarily as a result of favorable volume and mix in EMEA. Excluding negative currency translation, net sales increased in EMEA driven by higher volumes for trucks and buses. In LATAM, net sales were slightly down due to lower volumes for trucks, partially offset by favorable performance for buses and specialty vehicles, and positive pricing. In APAC, overall net sales were flat with a decline for trucks, mainly in Russia, offset by increased bus sales. The geographic distribution of net sales for the period was 77% EMEA, 14% LATAM and 9% APAC.
The European truck market was up 12.4% compared with Q1 2014, with light vehicles (GVW 3.5-6.0 tons) and heavy vehicles (GVW >16 tons) increasing while medium vehicles (GVW 6.1-15.9 tons) declined. In LATAM, new truck registrations declined 32.5% compared to Q1 2014, affecting all ranges.
In Q1 2015, the Company's market share in the European truck market was 10.8%, down 0.4 p.p. compared with Q1 2014. The Company's share of the LATAM market was 10.8%, down 1.1 p.p. compared to Q1 2014 as a result of the weighting of the Company's business in Argentina.
A total of 27,458 vehicles (including buses and specialty vehicles) were delivered in the quarter, representing a 1% decrease compared to Q1 2014. Volumes were higher in the light segment (up 4%), while in the medium and heavy segments volumes were down 8% and 10%, respectively. Commercial Vehicles' deliveries increased 9% in EMEA, while LATAM and APAC were down 28% and 35%, respectively.
Commercial Vehicles' ending book-to-bill ratio as of Q1 2015 was 1.40, an increase of 11% over Q1 2014. Q1 2015 order intake in EMEA Trucks increased by 15% compared to Q1 2014, with a 43% increase in Heavy Trucks in Europe.
Commercial Vehicles closed the first quarter with an operating profit of $1 million compared with a loss of $70 million for Q1 2014 (up $68 million on a constant currency basis), as a result of improved volume and mix, and cost reductions in SG&A expenses, primarily as a result of the Efficiency Program. In EMEA, the increase in operating profit is mainly attributable to trucks, as a result of favorable volume and mix, and SG&A cost reductions. LATAM, despite the negative market trend, started to recover relative to 2014. Results in APAC were negatively affected by decreased industry volumes in Russia, Turkey and Australia.
On April 10, 2015, CNH Industrial announced that, in line with the ongoing Efficiency Program launched in 2014, it plans to focus the operations of its Iveco commercial vehicles manufacturing facilities in Madrid and Valladolid, Spain. Under the announced plan, Madrid will be fully dedicated to the assembly of Stralis and Trakker heavy commercial vehicles and Valladolid will be transformed into a center of excellence for heavy commercial vehicles cab production. The transfer of cab operations from Madrid to Valladolid will be executed in two steps beginning mid-2015 and concluding at the end of 2016. In addition, the production of the extra heavy special vehicles and the chassis cab versions of the Iveco Daily light duty commercial vehicles, currently carried out, respectively, in Madrid and in Valladolid, will be transferred to existing facilities in Italy. The Iveco Astra plant, located in Piacenza, Italy, will assume production of the extra heavy special vehicles from Madrid in the second half of 2015 and the CNH Industrial's facility in Suzzara, Italy, will become the central production hub for the Iveco Daily by the end of 2016.
Powertrain
POWERTRAIN |
||||||||
1st Quarter |
||||||||
2015 |
2014 |
Change |
||||||
Net sales |
901 |
1,201 |
-25.0% |
|||||
Operating profit |
36 |
34 |
2 |
|||||
Operating margin (%) |
4.0 |
2.8 |
1.2 p.p. |
|||||
Powertrain reported first quarter net sales of $901 million, a decrease of 10.3% compared to Q1 2014 on a constant currency basis (down 25.0% on a reported basis) on lower volumes mainly in the captive portion of the business as a result of decreased agricultural equipment demand and the 2014 buildup of Tier 4 final transition engine inventory for the off-road segment. Sales to external customers accounted for 47% of total net sales (37% in Q1 2014).
During the quarter, Powertrain sold a total of 129,714 engines, a decrease of 17.6% compared to Q1 2014. By major customer, 11% of engines were supplied to Agricultural Equipment, 30% to Commercial Vehicles, 5% to Construction Equipment and the remaining 54% to external customers. Additionally, Powertrain delivered 15,860 transmissions and 41,374 axles, a decrease of 8.2% and an increase 3.1%, respectively, compared to Q1 2014.
Despite the decline in engine volumes, Powertrain closed the first quarter with an operating profit of $36 million, up $2 million from the same period in 2014, with an operating margin of 4.0% (2.8% for Q1 2014). The improvement (up $12 million on a constant currency basis) was mainly due to positive product mix, industrial efficiencies and SG&A expense reduction.
Financial Services
FINANCIAL SERVICES |
||||||||
1st Quarter |
||||||||
2015 |
2014 |
Change |
||||||
Revenues |
413 |
440 |
-6.1% |
|||||
Net income |
85 |
86 |
-1 |
|||||
Financial Services reported first quarter revenues of $413 million, an increase of 7.3% compared to Q1 2014 on a constant currency basis (a decrease of 6.1% on a reported basis), primarily due to a larger average portfolio during the quarter, partially offset by a decrease in interest yields.
Net income was $85 million for the first quarter, flat compared to the same period in 2014, as the negative impact of currency translation and lower interest margin were offset by reduced SG&A costs and lower provisions for credit losses. In Q1 2014, SG&A expenses were affected by increased costs associated with new activities launched in EMEA and LATAM to support Commercial Vehicles.
Retail loan originations in the quarter were $2.1 billion, down $0.2 billion compared to Q1 2014, mostly due to the decline in Agricultural Equipment sales. The managed portfolio (including unconsolidated joint ventures) of $25.2 billion as of March 31, 2015 (of which retail was 65% and wholesale 35%) was down $2.1 billion compared to December 31, 2014. Excluding the impact of currency, such portfolio decreased $0.3 billion, primarily in NAFTA (retail).
2015 U.S. GAAP Outlook
Full year guidance is confirmed reflecting current currency exchange rates as follows:
Therefore, CNH Industrial is revising its 2015 guidance as follows:
- Net sales of Industrial Activities in the range of $26-27 billion, with an operating margin of Industrial Activities between 6.1% and 6.4%;
- Net industrial debt at the end of 2015 between $2.1 billion and $2.3 billion.
Sergio Marchionne |
Richard Tobin |
Chairman |
Chief Executive Officer |
About CNH Industrial
CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines, transmissions and axles. More information can be found on the corporate website: www.cnhindustrial.com
Additional Information
Today, at 4:00 p.m. GMT, (5:00 p.m. CET, 11:00 a.m. EDT), management will hold a conference call to present 2015 first quarter 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's 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 is derived from financial information prepared in accordance with IFRS and 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
All statements other than statements of historical fact contained in this earning release including statements regarding our: 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, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements, 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 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 including, 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; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; actions of competitors in the various industries in which the Company competes; development and use of new technologies and technological difficulties; compliance requirements imposed if additional engine emissions legislation and/or regulations are adopted; 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; 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 evolution of the Company's alliance 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 deterioration of the Eurozone sovereign debt crisis and other similar 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, 2014, prepared in accordance with U.S. GAAP and in our EU Annual Report at December 31, 2014, prepared in accordance with IFRS. Investors should refer to 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. The Company can give no assurance that the expectations reflected in this forward-looking statements will prove to be correct. Actual results could differ materially from those anticipated in such 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 publicly 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 Financiële Markten ("AFM") and Commissione Nazionale per le Società e la Borsa ("CONSOB").
All future written and oral forward-looking statements by the Company or persons acting on Company's behalf are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.
Contacts |
|
Media Inquiries |
Investor Relations |
Richard Gadeselli |
Federico Donati |
Tel: +44 207 7660 346 |
Tel: +39 011 00 62756 |
Laura Overall |
Noah Weiss |
Tel: +44 207 7660 346 |
Tel: +1 630 887 3745 |
e-mail: [email protected] |
|
CNH INDUSTRIAL N.V. |
||||
Condensed Consolidated Statements of Operations |
||||
For The Three Months Ended March 31, 2015 and 2014 |
||||
(Unaudited) |
||||
(U.S. GAAP) |
||||
($ million) |
Three Months Ended March 31, |
|||
2015 |
2014 |
|||
Revenues |
||||
Net sales |
5,625 |
7,211 |
||
Finance and interest income |
335 |
329 |
||
TOTAL REVENUES |
5,960 |
7,540 |
||
Costs and Expenses |
||||
Cost of goods sold |
4,716 |
5,877 |
||
Selling, general and administrative expenses |
567 |
752 |
||
Research and development expenses |
190 |
257 |
||
Restructuring expenses |
12 |
12 |
||
Interest expense |
284 |
311 |
||
Other, net |
100 |
112 |
||
TOTAL COSTS AND EXPENSES |
5,869 |
7,321 |
||
INCOME BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
91 |
219 |
||
Income taxes |
77 |
143 |
||
Equity in income of unconsolidated subsidiaries and affiliates |
9 |
25 |
||
NET INCOME |
23 |
101 |
||
Net income attributable to noncontrolling interests |
1 |
1 |
||
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL N.V. |
22 |
100 |
||
(in $) |
||||
Earnings per share attributable to common shareholders |
||||
Basic |
0.02 |
0.07 |
||
Diluted |
0.02 |
0.07 |
||
These Condensed Consolidated Statements of Operations should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2014 included in the Annual Report on Form 20-F. These Condensed Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V. |
||||||
Condensed Consolidated Balance Sheets |
||||||
As of March 31, 2015 and December 31, 2014 |
||||||
(Unaudited) |
||||||
(U.S. GAAP) |
||||||
($ million) |
March 31, 2015 |
December 31, 2014 |
||||
Cash and cash equivalents |
3,698 |
5,163 |
||||
Restricted cash |
817 |
978 |
||||
Trade receivables, net |
782 |
1,054 |
||||
Financing receivables, net |
19,571 |
21,472 |
||||
Inventories, net |
7,105 |
7,008 |
||||
Property, plant and equipment, net |
6,188 |
6,865 |
||||
Investments in unconsolidated subsidiaries and affiliates |
563 |
605 |
||||
Equipment under operating lease |
1,584 |
1,518 |
||||
Goodwill |
2,473 |
2,484 |
||||
Other intangible assets, net |
808 |
850 |
||||
Deferred tax assets |
1,515 |
1,747 |
||||
Derivative assets |
314 |
205 |
||||
Other assets |
1,865 |
1,964 |
||||
TOTAL ASSETS |
47,283 |
51,913 |
||||
Debt |
26,639 |
29,594 |
||||
Trade payables |
5,512 |
5,982 |
||||
Deferred tax liabilities |
476 |
452 |
||||
Pension, postretirement and other post-employment benefits |
2,472 |
2,614 |
||||
Derivative liabilities |
337 |
235 |
||||
Other liabilities |
6,876 |
8,059 |
||||
Total liabilities |
42,312 |
46,936 |
||||
Redeemable Noncontrolling interest |
16 |
16 |
||||
Equity |
4,955 |
4,961 |
||||
TOTAL EQUITY AND LIABILITIES |
47,283 |
51,913 |
||||
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, 2014 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 Three Months Ended March 31, 2015 and 2014 |
||
(Unaudited) |
||
(U.S. GAAP) |
||
($ million) |
Three Months Ended March 31, |
|
2015 |
2014 |
|
Operating activities: |
||
Net income |
23 |
101 |
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 |
173 |
176 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments |
103 |
97 |
Loss from disposal of assets |
3 |
2 |
Undistributed income of unconsolidated subsidiaries |
19 |
30 |
Other non cash items |
47 |
45 |
Changes in operating assets and liabilities: |
||
Provisions |
(75) |
27 |
Deferred income taxes |
81 |
30 |
Trade and financing receivables related to sales, net |
276 |
(386) |
Inventories, net |
(746) |
(1,105) |
Trade payables |
7 |
(559) |
Other assets and liabilities |
(532) |
(362) |
NET CASH USED IN OPERATING ACTIVITIES |
(621) |
(1,904) |
Investing activities: |
||
Net collections of retail receivables |
454 |
234 |
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments |
- |
2 |
Proceeds from the sale of assets previously under operating leases and assets sold under buy-back commitments |
162 |
128 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and assets sold under buy-back commitments |
(88) |
(152) |
Expenditures for assets under operating leases and assets sold under buy-back commitments |
(363) |
(318) |
Other |
429 |
95 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
594 |
(11) |
Financing activities: |
||
Net increase (decrease) in debt |
(1,033) |
1,350 |
Dividends paid |
- |
(3) |
Other |
2 |
4 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(1,031) |
1,351 |
Effect of foreign exchange rate changes on cash and cash equivalents |
(407) |
25 |
DECREASE IN CASH AND CASH EQUIVALENTS |
(1,465) |
(539) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
5,163 |
5,567 |
CASH AND CASH EQUIVALENTS, END OF PERIOD |
3,698 |
5,028 |
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, 2014 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 March 31, 2015 and 2014 |
||||
(Unaudited) |
||||
(U.S. GAAP) |
||||
Industrial Activities |
Financial Services |
|||
($ million) |
Three Months Ended March 31, |
Three Months Ended March 31, |
||
2015 |
2014 |
2015 |
2014 |
|
Revenues |
||||
Net sales |
5,625 |
7,213 |
- |
- |
Finance and interest income |
71 |
60 |
413 |
440 |
TOTAL REVENUES |
5,696 |
7,273 |
413 |
440 |
Costs and Expenses |
||||
Cost of goods sold |
4,716 |
5,879 |
- |
- |
Selling, general and administrative expenses |
496 |
665 |
71 |
87 |
Research and development expenses |
190 |
257 |
- |
- |
Restructuring expenses |
12 |
12 |
- |
- |
Interest expense |
174 |
195 |
156 |
172 |
Interest compensation to Financial Services |
71 |
86 |
- |
- |
Other, net |
73 |
89 |
59 |
52 |
TOTAL COSTS AND EXPENSES |
5,732 |
7,183 |
286 |
311 |
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
(36) |
90 |
127 |
129 |
Income taxes |
30 |
95 |
47 |
48 |
Equity in income of unconsolidated subsidiaries and affiliates |
4 |
21 |
5 |
4 |
Result from intersegment investments |
85 |
85 |
- |
1 |
NET INCOME |
23 |
101 |
85 |
86 |
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 March 31, 2015 and December 31, 2014 |
||||
(Unaudited) |
||||
(U.S. GAAP) |
||||
Industrial Activities |
Financial Services |
|||
($ million) |
March 31, 2015 |
December 31, 2014 |
March 31, 2015 |
December 31, |
Cash and cash equivalents |
2,730 |
4,122 |
968 |
1,041 |
Restricted cash |
2 |
1 |
815 |
977 |
Trade receivables |
771 |
1,025 |
50 |
92 |
Financing receivables |
3,367 |
4,767 |
20,279 |
22,717 |
Inventories, net |
6,939 |
6,845 |
166 |
163 |
Property, plant and equipment, net |
6,186 |
6,862 |
2 |
3 |
Investments in unconsolidated subsidiaries and affiliates |
2,807 |
3,063 |
123 |
136 |
Equipment under operating leases |
11 |
20 |
1,573 |
1,498 |
Goodwill |
2,318 |
2,324 |
155 |
160 |
Other intangible assets, net |
789 |
828 |
19 |
22 |
Deferred tax assets |
1,305 |
1,508 |
210 |
239 |
Derivative assets |
307 |
198 |
10 |
9 |
Other assets |
1,533 |
1,502 |
752 |
781 |
TOTAL ASSETS |
29,065 |
33,065 |
25,122 |
27,838 |
Debt |
9,099 |
11,520 |
21,615 |
24,086 |
Trade payables |
5,385 |
5,850 |
173 |
197 |
Deferred tax liabilities |
187 |
202 |
289 |
250 |
Pension, postretirement and other post-employment benefits |
2,453 |
2,594 |
19 |
20 |
Derivative liability |
323 |
221 |
17 |
16 |
Other liabilities |
6,647 |
7,701 |
640 |
675 |
Total liabilities |
24,094 |
28,088 |
22,753 |
25,244 |
Equity |
4,955 |
4,961 |
2,369 |
2,594 |
Redeemable noncontrolling interest |
16 |
16 |
- |
- |
TOTAL EQUITY AND LIABILITIES |
29,065 |
33,065 |
25,122 |
27,838 |
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 Three Months Ended March 31, 2015 and 2014 |
||||
(Unaudited) |
||||
(U.S. GAAP) |
||||
Industrial Activities |
Financial Services |
|||
($ million) |
Three Months Ended March 31, |
Three Months Ended March 31, |
||
2015 |
2014 |
2015 |
2014 |
|
Operating activities: |
||||
Net income |
23 |
101 |
85 |
86 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments |
172 |
175 |
1 |
1 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments |
56 |
63 |
47 |
34 |
Loss from disposal of assets |
1 |
2 |
2 |
- |
Undistributed income (loss) of unconsolidated subsidiaries |
(25) |
40 |
(6) |
(6) |
Other non-cash items |
22 |
13 |
25 |
32 |
Changes in operating assets and liabilities: |
||||
Provisions |
(77) |
8 |
2 |
19 |
Deferred income taxes |
38 |
8 |
43 |
22 |
Trade and financing receivables related to sales, net |
178 |
50 |
115 |
(441) |
Inventories, net |
(738) |
(1,125) |
(8) |
20 |
Trade payables |
6 |
(473) |
(16) |
(78) |
Other assets and liabilities |
(490) |
(431) |
(42) |
66 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
(834) |
(1,569) |
248 |
(245) |
Investing activities: |
||||
Net collections of retail receivables |
- |
- |
454 |
234 |
Proceeds from the sale of assets, net of assets sold under operating lease and assets sold under buy-back commitments |
- |
2 |
- |
- |
Proceeds from the sale of assets previously under operating lease and assets sold under buy-back commitments |
60 |
58 |
102 |
70 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and assets sold under buy-back commitments |
(88) |
(142) |
- |
(10) |
Expenditures for assets under operating lease and assets sold under buy-back commitments |
(117) |
(163) |
(246) |
(155) |
Other |
905 |
698 |
(416) |
(603) |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES |
760 |
453 |
(106) |
(464) |
Financing activities: |
||||
Net increase (decrease) in debt |
(1,022) |
1,332 |
(11) |
18 |
Dividends paid |
- |
(3) |
(35) |
(90) |
Other |
2 |
4 |
(60) |
- |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |
(1,020) |
1,333 |
(106) |
(72) |
Effect of foreign exchange rate changes on cash and cash equivalents |
(298) |
18 |
(109) |
7 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(1,392) |
235 |
(73) |
(774) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
4,122 |
4,010 |
1,041 |
1,557 |
CASH AND CASH EQUIVALENTS, END OF PERIOD |
2,730 |
4,245 |
968 |
783 |
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) |
|||||||
CNH INDUSTRIAL Net debt ($ million) |
|||||||
March 31, 2015 |
December 31, 2014 |
Change |
|||||
Total debt (1) |
(26,639) |
(29,594) |
2,955 |
||||
- Asset-backed financing |
(12,501) |
(13,587) |
1,086 |
||||
- Other debt |
(14,138) |
(16,007) |
1,869 |
||||
Derivative hedging debt |
39 |
35 |
4 |
||||
Cash and cash equivalents |
3,698 |
5,163 |
(1,465) |
||||
Restricted cash |
817 |
978 |
(161) |
||||
Net debt |
(22,085) |
(23,418) |
1,333 |
||||
Of which: Industrial Activities |
(3,051) |
(2,691) |
(360) |
||||
Financial Services |
(19,034) |
(20,727) |
1,693 |
||||
Cash, cash equivalents and restricted cash |
4,515 |
6,141 |
(1,626) |
||||
Undrawn committed facilities |
2,674 |
2,716 |
(42) |
||||
Available liquidity |
7,189 |
8,857 |
(1,668) |
||||
(1) Inclusive of adjustments to fair value hedges. |
|||||||
(U.S. GAAP) |
||||||
CNH INDUSTRIAL Change in Net Industrial Debt ($ million) |
||||||
Three Months Ended March 31, |
||||||
2015 |
2014 |
Change |
||||
Net industrial (debt)/cash at beginning of period |
(2,691) |
(2,214) |
(477) |
|||
Net income |
23 |
101 |
(78) |
|||
Amortization and depreciation (*) |
172 |
175 |
(3) |
|||
Changes in provisions and similar, and items related to assets sold under buy-back commitments, and assets under operating lease |
(55) |
63 |
(118) |
|||
Change in working capital |
(1,039) |
(2,011) |
972 |
|||
Investments in property, plant and equipment, and intangible assets (*) |
(88) |
(142) |
54 |
|||
Other changes |
(5) |
20 |
(25) |
|||
Net industrial cash flow |
(992) |
(1,794) |
802 |
|||
Capital increases and dividends |
2 |
1 |
1 |
|||
Currency translation differences |
630 |
(17) |
647 |
|||
Change in Net industrial debt |
(360) |
(1,810) |
1,450 |
|||
Net industrial (debt)/cash at end of period |
(3,051) |
(4,024) |
973 |
|||
(*) Excluding assets sold under buy-back commitments and assets under operating lease. |
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) |
|||||||
Three Months Ended March 31, |
|||||||
2015 |
2014 |
||||||
Net income |
23 |
101 |
|||||
Restructuring expenses, net of tax |
10 |
12 |
|||||
Other exceptional items, net of tax |
- |
64 |
|||||
Net income before restructuring and other exceptional items |
33 |
177 |
|||||
Net income before restructuring and other exceptional items attributable to CNH Industrial N.V. |
32 |
176 |
|||||
Weighted average shares outstanding (million) |
1,359 |
1,353 |
|||||
Basic EPS before restructuring and exceptional items ($) |
0.02 |
0.13 |
|||||
(U.S. GAAP) |
||||||||||
Industrial Activities Cash Provided (Used) by Working Capital ($ million) |
||||||||||
Balance as of March 31, 2015 |
Balance as of December 31, 2014 |
Differences |
Of which: effect of Foreign Currency Translation and Non-Cash Transactions |
Cash Provided (Used) by Working Capital |
||||||
Trade and financing receivables related to sales, net |
836 |
1,096 |
260 |
82 |
178 |
|||||
Inventories, net |
6,939 |
6,845 |
(94) |
644 |
(738) |
|||||
Trade payables |
(5,385) |
(5,850) |
(465) |
(471) |
6 |
|||||
Other assets and liabilities, net |
(176) |
(674) |
(498) |
(13) |
(485) |
|||||
Working capital |
2,214 |
1,417 |
(797) |
242 |
(1,039) |
|||||
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:
1st Quarter 2015 |
At December 31, 2014 |
1st Quarter 2014 |
|||||
Average |
At March 31 |
Average |
At March 31 |
||||
Euro |
0.888 |
0.929 |
0.824 |
0.730 |
0.725 |
||
Pound sterling |
0.660 |
0.676 |
0.642 |
0.604 |
0.601 |
||
Swiss franc |
0.952 |
0.972 |
0.990 |
0.893 |
0.884 |
||
Polish zloty |
3.723 |
3.797 |
3.520 |
3.055 |
3.026 |
||
Brazilian real |
2.863 |
3.249 |
2.653 |
2.366 |
2.268 |
||
Canadian dollar |
1.239 |
1.277 |
1.158 |
1.103 |
1.104 |
||
Argentine peso |
8.684 |
8.809 |
8.551 |
7.598 |
8.002 |
||
Turkish lira |
2.462 |
2.615 |
2.333 |
2.218 |
2.154 |
CNH INDUSTRIAL N.V. |
||
Condensed Consolidated Income Statement |
||
For The Three Months Ended March 31, 2015 and 2014 |
||
(Unaudited) |
||
(IFRS) |
||
($ million) |
1st Quarter 2015 |
1st Quarter 2014 |
Net revenues |
6,067 |
7,644 |
Cost of sales |
5,047 |
6,189 |
Selling, general and administrative costs |
539 |
719 |
Research and development costs |
203 |
208 |
Other income/(expenses) |
(11) |
(18) |
TRADING PROFIT/(LOSS) |
267 |
510 |
Gains/(losses) on the disposal of investments |
- |
- |
Restructuring costs |
9 |
30 |
Other unusual income/(expenses) |
- |
- |
OPERATING PROFIT/(LOSS) |
258 |
480 |
Financial income/(expenses) |
(155) |
(215) |
Result from investments: |
10 |
26 |
Share of the profit/(loss) of investees accounted for using the equity method |
12 |
26 |
Other income/(expenses) from investments |
(2) |
- |
PROFIT/(LOSS) BEFORE TAXES |
113 |
291 |
Income taxes |
83 |
145 |
PROFIT/(LOSS) FROM CONTINUING OPERATIONS |
30 |
146 |
Profit/(loss) from discontinued operations |
- |
- |
PROFIT/(LOSS) FOR THE PERIOD |
30 |
146 |
PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO: |
||
Owners of the parent |
28 |
145 |
Non-controlling interests |
2 |
1 |
(in $) |
||
BASIC EARNINGS/(LOSS) PER COMMON SHARE |
0.02 |
0.11 |
DILUTED EARNINGS/(LOSS) PER COMMON SHARE |
0.02 |
0.11 |
This Condensed Consolidated Income Statement should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2014 included in the EU Annual Report. This Condensed Consolidated Income Statement represents the consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V. |
|||
Condensed Consolidated Statement of Financial Position |
|||
As of March 31, 2015 and December 31, 2014 |
|||
(Unaudited) |
|||
(IFRS) |
|||
($ million) |
March 31, 2015 |
December 31, 2014 |
|
ASSETS |
|||
Intangible assets |
5,727 |
6,031 |
|
Property, plant and equipment |
6,079 |
6,733 |
|
Investments and other financial assets: |
641 |
690 |
|
Investments accounted for using the equity method |
595 |
633 |
|
Other investments and financial assets |
46 |
57 |
|
Leased assets |
1,584 |
1,518 |
|
Defined benefit plan assets |
18 |
20 |
|
Deferred tax assets |
1,512 |
1,655 |
|
Total Non-current assets |
15,561 |
16,647 |
|
Inventories |
7,216 |
7,140 |
|
Trade receivables |
782 |
1,054 |
|
Receivables from financing activities |
19,571 |
21,472 |
|
Current tax receivables |
370 |
324 |
|
Other current assets |
1,280 |
1,434 |
|
Current financial assets: |
315 |
205 |
|
Current securities |
1 |
- |
|
Other financial assets |
314 |
205 |
|
Cash and cash equivalents |
4,515 |
6,141 |
|
Total Current assets |
34,049 |
37,770 |
|
Assets held for sale |
22 |
24 |
|
TOTAL ASSETS |
49,632 |
54,441 |
|
EQUITY AND LIABILITIES |
|||
Issued capital and reserves attributable to owners of the parent |
7,339 |
7,534 |
|
Non-controlling interests |
44 |
43 |
|
Total Equity |
7,383 |
7,577 |
|
Provisions: |
5,790 |
6,386 |
|
Employee benefits |
2,610 |
2,831 |
|
Other provisions |
3,180 |
3,555 |
|
Debt: |
26,657 |
29,701 |
|
Asset-backed financing |
12,501 |
13,587 |
|
Other debt |
14,156 |
16,114 |
|
Other financial liabilities |
337 |
235 |
|
Trade payables |
5,512 |
5,982 |
|
Current tax payables |
196 |
206 |
|
Deferred tax liabilities |
444 |
399 |
|
Other current liabilities |
3,313 |
3,955 |
|
Liabilities held for sale |
- |
- |
|
Total Liabilities |
42,249 |
46,864 |
|
TOTAL EQUITY AND LIABILITIES |
49,632 |
54,441 |
This Condensed 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, 2014 included in the EU Annual Report. This Condensed Consolidated Statement of Financial Position represents the consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V. |
||
Condensed Consolidated Statement of Cash Flows |
||
For The Three Months Ended March 31, 2015 and 2014 |
||
(Unaudited) |
||
(IFRS) |
||
($ million) |
1st Quarter 2015 |
1st Quarter 2014 |
A) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
6,141 |
6,489 |
B) CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES DURING THE PERIOD: |
||
Profit/(loss) for the period |
30 |
146 |
Amortization and depreciation (net of vehicles sold under buy-back commitments and operating lease) |
280 |
269 |
(Gains)/losses on disposal of non-current assets (net of vehicles sold under buy-back commitments) |
1 |
1 |
Other non-cash items |
27 |
12 |
Dividends received |
29 |
55 |
Change in provisions |
(185) |
(73) |
Change in deferred income taxes |
64 |
23 |
Change in items due to buy-back commitments (a) |
(153) |
(2) |
Change in operating lease items (b) |
(110) |
(35) |
Change in working capital |
(653) |
(1,896) |
TOTAL |
(670) |
(1,500) |
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) |
(185) |
(305) |
Consolidated subsidiaries and other equity investments |
(5) |
(5) |
Proceeds from the sale of non-current assets (net of vehicles sold under buy-back commitments) |
- |
2 |
Net change in receivables from financing activities |
571 |
(153) |
Change in current securities |
(1) |
- |
Other changes |
262 |
5 |
TOTAL |
642 |
(456) |
D) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES: |
||
Bonds issued |
- |
1,370 |
Repayment of bonds |
(1,126) |
- |
Issuance of other medium-term borrowings |
535 |
824 |
Repayment of other medium-term borrowings |
(378) |
(391) |
Net change in other financial payables and other financial assets/liabilities |
(201) |
(493) |
Capital increase |
2 |
4 |
Dividends paid |
- |
(3) |
TOTAL |
(1,168) |
1,311 |
Translation exchange differences |
(430) |
25 |
E) TOTAL CHANGE IN CASH AND CASH EQUIVALENTS |
(1,626) |
(620) |
F) CASH AND CASH EQUIVALENTS AT END OF PERIOD |
4,515 |
5,869 |
(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 Condensed 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, 2014 included in the EU Annual Report. This Condensed Consolidated Statement of Cash Flows represents the consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V. |
|||||||||
Other Supplemental Financial Information |
|||||||||
(Unaudited) |
|||||||||
CNH INDUSTRIAL |
|||||||||
Net revenues |
Trading profit/(Loss) |
||||||||
2015 |
2014 |
% change |
2015 |
2014 |
Change |
||||
2,577 |
3,706 |
-30.5 |
Agricultural Equipment |
157 |
442 |
-285 |
|||
602 |
774 |
-22.2 |
Construction Equipment |
(4) |
1 |
-5 |
|||
2,091 |
2,354 |
-11.2 |
Commercial Vehicles |
(22) |
(74) |
52 |
|||
904 |
1,205 |
-25.0 |
Powertrain |
28 |
30 |
-2 |
|||
(492) |
(776) |
- |
Eliminations and other |
(19) |
(19) |
- |
|||
5,682 |
7,263 |
-21.8 |
Total of Industrial Activities |
140 |
380 |
-240 |
|||
494 |
509 |
-2.9 |
Financial Services |
127 |
130 |
-3 |
|||
(109) |
(128) |
- |
Eliminations and other |
- |
- |
- |
|||
6,067 |
7,644 |
-20.6 |
Total |
267 |
510 |
-243 |
|||
CNH INDUSTRIAL |
||||||
March 31, 2015 |
December 31, 2014 |
|||||
Total assets |
49,632 |
54,441 |
||||
Total equity |
7,383 |
7,577 |
||||
Equity attributable to CNH Industrial N.V. |
7,339 |
7,534 |
||||
Net debt |
(22,164) |
(23,590) |
||||
Of which Net industrial debt |
(3,120) |
(2,874) |
||||
CNH INDUSTRIAL |
|||||
2015 |
2014 |
||||
Net income in accordance with U.S. GAAP |
23 |
101 |
|||
Adjustments to conform with IFRS: |
|||||
Development costs |
(10) |
60 |
|||
Goodwill and other intangible assets |
2 |
2 |
|||
Defined benefit plans |
11 |
4 |
|||
Restructuring provisions |
3 |
(18) |
|||
Other adjustments |
7 |
(1) |
|||
Tax impact on adjustments |
(8) |
(14) |
|||
Deferred tax assets and tax contingencies recognition |
2 |
12 |
|||
Total adjustments |
7 |
45 |
|||
Profit in accordance with IFRS |
30 |
146 |
|||
CNH INDUSTRIAL N.V. |
|||||
Other Supplemental Financial Information |
|||||
(Unaudited) |
|||||
CNH INDUSTRIAL |
|||||
March 31, 2015 |
December 31, 2014 |
||||
Total Equity under U.S. GAAP |
4,955 |
4,961 |
|||
Adjustments to conform with IFRS: |
|||||
Development costs, net of amortization |
2,565 |
2,819 |
|||
Goodwill and other intangible assets |
(119) |
(122) |
|||
Defined benefit plans |
(18) |
(6) |
|||
Restructuring provisions |
(7) |
(12) |
|||
Other adjustments |
(7) |
(16) |
|||
Tax impact on adjustments |
(719) |
(815) |
|||
Deferred tax assets and tax contingencies recognition |
733 |
768 |
|||
Total adjustments |
2,428 |
2,616 |
|||
Total Equity under IFRS |
7,383 |
7,577 |
|||
SOURCE CNH Industrial N.V.
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