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For the second quarter of 2019 CNH Industrial reported a robust net income of $427 million, or $0.31 per share, on consolidated revenues of $7.6 billion. Net debt of Industrial Activities at $1.5 billion

  • Industrial Activities net sales were $7.1 billion, down 7% compared to the second quarter of 2018 (down 2% on a constant currency basis), with positive price realization more than offset by lower sales volume and negative currency translation impact • Adjusted EBIT(2)(3) of Industrial Activities was $527 million, with a 7.5% margin, flat compared to the second quarter of 2018.

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    Adjusted EBITDA(2)(3) of Industrial Activities was $768 million, with a 10.9% margin

  • Adjusted net income(2)(3) was $430 million in the second quarter of 2019, with adjusted diluted EPS(2)(3) of $0.31, up 11% compared to the second quarter of 2018

  • Net debt of Industrial Activities at June 30, 2019 was $1.5 billion, in line with March 31, 2019 • On July 2, Fitch Ratings improved the outlook of CNH Industrial N.V. to positive from stable and affirmed CNH Industrial N.V.’s and CNH Industrial Capital LLC’s long-term issuer default rating at “BBB-”

  • On July 3, CNH Industrial Finance Europe S.A. issued €500 million in principal amount of 1.625% notes due 2029 and guaranteed by CNH Industrial N.V.

  • Full year guidance at: net sales of Industrial Activities expected between $27 and $27.5 billion, adjusted diluted EPS between $0.84 and $0.88, and net debt of Industrial Activities between $0.4 billion and $0.2 billion

CNH Industrial N.V. (NYSE:CNHI / MI:CNHI) today announced consolidated revenues of $7,567 million for the second quarter of 2019, down 6% compared to the second quarter of 2018 (down 2% on a constant currency basis). Net sales of Industrial Activities were $7,068 million in the second quarter of 2019, down 7% compared to the second quarter of 2018 (down 2% on a constant currency basis). Net income was $427 million for the second quarter of 2019 ($408 million in the second quarter of 2018). 

Adjusted net income was $430 million for the second quarter of 2019 compared to $397 million in the second quarter of 2018, as a result of a lower consolidated adjusted EBIT more than offset by the non-repeat of foreign exchange losses incurred in 2018 primarily due to the volatility in emerging markets. Adjusted diluted EPS was $0.31 in the second quarter of 2019, compared to $0.28 in the second quarter of 2018.

Adjusted EBIT of Industrial Activities was $527 million in the second quarter of 2019 ($571 million in the second quarter of 2018), with an adjusted EBIT margin of 7.5%, flat compared to the second quarter of 2018. Adjusted EBITDA of Industrial Activities was $768 million in the second quarter of 2019 ($843 million in the second quarter of 2018), with an adjusted EBITDA margin of 10.9% (11.1% in the second quarter of 2018).

Income taxes were $135 million in the second quarter of 2019 ($118 million in the second quarter of 2018). Adjusted income taxes(1)(2) for the second quarter of 2019 were $130 million ($114 million in the second quarter of 2018). The adjusted effective tax rate (adjusted ETR)(1)(2) was 24% (23% in the second quarter of 2018). Full year 2019 adjusted ETR is expected to be approximately 27%. Net debt of Industrial Activities was $1.5 billion at June 30, 2019, in line with March 31, 2019. In the second quarter the Company generated a free cash flow of Industrial Activities(1)(2) of $382 million, and paid $275 million in dividends to shareholders. Total debt was $24.4 billion at June 30, 2019, up $0.6 billion compared to March 31, 2019. At June 30, 2019, available liquidity(1)(2) was $9.9 billion, down $0.2 billion compared to March 31, 2019.

On July 2, Fitch Ratings (“Fitch”) improved the outlook of CNH Industrial N.V. to positive from stable. Fitch also affirmed CNH Industrial N.V.’s and CNH Industrial Capital LLC’s long-term issuer default rating at “BBB-”. On July 3, CNH Industrial Finance Europe S.A. issued €500 million in principal amount of 1.625% notes due 2029 and guaranteed by CNH Industrial N.V.

Source: CNH Industrial N.V.

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