CNH Industrial
(27.18% stake
Fiat also holds a 2.52% stake)






The main consolidated figures of the CNH Industrial Group for 2013 are as follows:

 
€ million
Year  
2013 2012(1) Change
Net revenues 25,778 25,785 (7)
Trading profit/(loss) 1,985 2,063 (78)
Operating profit/(loss) 1,868 1,846 22
Profit/(loss) for the year 917 900 17
Profit/(loss) attributable to owners of the parent 789 791 (2)
(1) The figures for the full year 2012 and at December 31, 2012 have been restated following the adoption of IAS 19 Revised.
 
At
€ million 12/31/2013 12/31/2012 (1)
Total assets 40,941 38,861
Net (debt)/cash (16,888) (15,994)
- of which: Net industrial (debt) / cash (1,592) (1,642)
Equity attributable to owners of the parent 5,504 4,628

Net revenues

The CNH Industrial Group reported 2013 net revenues of €25.8 billion, in line with 2012; on a constant currency basis revenues increased 4.3%.

 
Year  
€ million 2013 2012  Change %
Agricultural and Construction Equipment  16,006 16,056 (0.3)
Trucks and Commercial Vehicles  8,752 8,924 (1.9)
Powertrain 3,331 2,933 13.6
Eliminations and other  (2,311) (2,128)  
Net revenues 25,778 25,785 (0.0)

Agricultural and Construction Equipment reported revenues of €16.0 billion for the year, in line with 2012 (up 4.7% on a constant currency basis) as strong demand for Agricultural Equipment continued to offset a challenging business environment in the Construction Equipment business. The geographic distribution of industrial net revenues for the year was 43% NAFTA, 28% EMEA, 18% LATAM, and 11% APAC.

Agricultural Equipment full-year net revenues were up 3.6% over 2012 (up 9% on a constant currency basis) driven by positive net pricing, increased volumes and favorable product mix. All geographic regions except APAC reported increased revenue on a constant currency basis. Worldwide Agricultural Equipment market share performance was substantially flat for both tractors and combines. Worldwide Agricultural Equipment production was in line with retail sales during 2013 but 17% below retail sales for the fourth quarter, as the CNH Industrial Group implemented the scheduled production slowdown to reduce company and dealer inventory to target year-end levels.

Construction Equipment net revenues decreased 16.4% over 2012 (down 11% on a constant currency basis), as continued weakness in most geographic regions was only partially offset by strength in LATAM. Worldwide Construction Equipment market share was substantially flat for both heavy and light equipment. Worldwide Construction Equipment production was 4% below retail sales for 2013, reflecting actions taken in the fourth quarter to realign dealer inventory to retail demand. 

Trucks and Commercial Vehicles reported full-year revenues of €8.8 billion, an increase of 1.5% on a constant currency basis (-1.9% on a reported basis). A modest recovery in demand in Europe, mainly in the fourth quarter of 2013, and a sustained increase in LATAM were largely offset by the negative market mix of products sold, as well as reduced activity in the parts and services business.

During 2013, Trucks and Commercial Vehicles delivered a total of 135,709 vehicles (including buses and specialty vehicles), representing a 1% decrease from the prior year. The overall decrease was largely attributable to light vehicles, with deliveries down 7% for the year mainly to realign dealer inventory to retail demand. Volumes were up 16% for medium vehicles, 2% for heavy and 3% for buses. Deliveries were down 1% in EMEA and up 15% in LATAM.

Powertrain reported 2013 revenues of €3.3 billion, an increase of 13.6% over the prior year (up 14.6% on a constant currency basis) with higher volumes recorded for both CNH Industrial Group companies and external customers. For 2013, sales to external customers accounted for 34% of total revenues, in line with 2012.

Trading profit /(loss)

The CNH Industrial Group reported trading profit for the year of €1,985 million (trading margin of 7.7%), down €78 million largely as a result of negative exchange rates. On a constant currency basis, trading profit was in line with 2012 as higher volumes and positive mix in the Agricultural and Construction Equipment Segment and higher revenues and better capacity utilization for Powertrain compensated for Euro VI transitional costs and a less favorable product mix and pricing environment in the Trucks and Commercial Vehicles Segment.


Year
€ million 2013 2012 (1) Change
Agricultural and Construction Equipment  1,783 1,554 229
Trucks and Commercial Vehicles  101 466 (365)
Powertrain 158 141 17
Eliminations and other  (57) (98) 41
Trading profit 1,985 2,063 (78)
Trading margin (%)  7.7  8.0  
(1) The figures for the full year 2012 have been restated following the adoption of IAS 19 Revised.

Agricultural and Construction Equipment trading profit increased to €1,783 million for the year, up €229 million (+14.7%) from the prior year, with a trading margin of 11.1% (9.7% in 2012), reflecting positive pricing, mix and industrial productivity compared to 2012.

Trucks and Commercial Vehicles closed the year with a trading profit of €101 million, compared to €466 million for 2012. Negative market and product mix and tight price competition continued to affect margins primarily in Southern Europe. In LATAM, new product launch costs and unfavorable foreign exchange rate impacts more than offset positive market trends and pricing.

Powertrain closed the year with a trading profit of €158 million, an increase of 12%, representing a trading margin of 4.7%, compared to €141 million (trading margin of 4.8%) for 2012. Higher revenues and better capacity utilization drove the improvement, which was partially offset by an increase in R&D costs aimed at maintaining technological leadership.

Operating profit/(loss)

Operating profit increased €22 million to €1,868 million in 2013 mainly as a result of reduced restructuring costs from the prior year.

Profit (loss) for the year

Net financial expense totaled €463 million for 2013, compared to €467 million for 2012.

Income taxes totaled €590 million, representing an effective tax rate of 39% for the year, slightly above full year CNH Industrial Group expectations mainly due to one-time merger related impacts. For 2014, CNH Industrial Group expects an effective tax rate between 35% and 38%.

CNH Industrial Group net profit was €917 million for 2013 (€900 million for 2012), or €0.63 per share (€0.65 for 2012).

Profit attributable to owners of the parent was €789 million for 2013 compared to €791 million for 2012.

Equity

Equity attributable to owners of the parent of CNH Industrial at December 31, 2013 was €5,504 million compared to €4,628 million at December 31, 2012.

Net debt

Net debt at December 31, 2013 came to €16,888 million (€15,994 million at December 31, 2012). Net industrial debt of €1,592 million at December 31, 2013 was €50 million lower than year-end 2012.


At  
€ million 12/31/2013 12/31/2012 Change
Debt (21,714) (20,633) (1,081)
- Asset backed financing (10,679) (9,708) (971)
- Other debt (11,035) (10,925) (110)
Other financial assets (liabilities) (1) 121 24 97
Cash and cash equivalents and current securities 4,705 4,615 90
Net debt (16,888) (15,994) (894)
Industrial Activities (1,592) (1,642) 50
Financial Services (15,296) (14,352) (944)
(1) Includes the fair value of derivative financial instruments.

Significant events subsequent to December 31, 2013

On January 28, 2014, CNH Industrial and BNP Paribas Leasing Solutions, the two shareholders of CNH Industrial Capital Europe, agreed on the extension of the joint-venture services to CNH Industrial Trucks and Commercial Vehicles business in Italy, Germany, France, the United Kingdom and other major European markets. This extension has been approved by the French banking regulatory authority (ACPR). Prior to this agreement, the joint venture provided leasing and financing to CNH Industrial customers in the Agricultural and Construction Equipment businesses in Europe starting from 1997. The company currently finances over 40,000 customers in nine countries, for a total outstanding portfolio of €1.7 billion. As a result of this increase in scope, CNH Industrial Capital Europe is now the captive finance company for all CNH Industrial Group businesses in major European countries. CNH Industrial Capital Europe will henceforth use the CNH Industrial Capital and Iveco Capital brands for dealer and customer-oriented financing activities.

Commercial Register No.64236277 Legal notes | Credits