CNH Industrial

 

(27.20% stake.
Fiat also holds a 2.52% stake)

The deed for the merger of Fiat Industrial S.p.A. with and into CNH Industrial N.V. and the deed for the merger of CNH Global N.V. with and into CNH Industrial N.V. were executed on September 27 and 28, 2013, respectively, and the integration of these two companies was completed on September 29, 2013.

The key consolidated figures of the CNH Industrial Group for the first nine months of 2013 are as follows:

  9 months
to September 30
Quarter III
€ million 2013 2012(1) 2013 2012(1)
Net revenues 18,844 18,771  6,217 6,313 
Trading profit/(loss) 1,549 1,628  508 570 
Operating profit/(loss) 1,480 1,488  498 561 
Profit/(loss) for the period 747 744  248 291 
Profit/(loss) attributable to owners of the parent 616 648  206 256 
(1) For the first nine months and third quarter of 2012, the figures have been restated following the adoption of IAS 19 Revised. There was no significant impact for any individual line item.
  Balances at
€ million 9/30/2013 12/31/2012
(1)
Total assets 40,013 38,861 
Net (debt)/cash (17,855) (15,994) 
- of which: (Net industrial debt) / cash (2,502) (1,642) 
Equity attributable to owners of the parent 5,489 4,628 
(1) The figures at December 31, 2012 are provided on a restated basis following the adoption of IAS 19 Revised.

Net revenues
Net revenues
of the CNH Industrial Group for the first nine months totaled €18.8 billion, an increase of 0.4% (+4.3% on a constant currency basis) over the prior year. Sales increases for Agricultural Equipment and Powertrain compensated for the lower revenue in Construction Equipment and Trucks and Commercial Vehicles.

  9 months to September 30 Change
€ million 2013
2012 %
Agricultural and Construction Equipment (CNH) 12,107 12,004 0.9
Trucks and Commercial Vehicles (Iveco) 6,063 6,226 (2.6)
Powertrain (FPT Industrial) 2,346 2,106 11.4
Eliminations and other
(1,672) (1,565)  
Net revenues 18,844 18,771 0.4

Agricultural and Construction Equipment reported revenues of €12.1 billion for the first nine months of 2013, a 0.9% increase over the same period in 2012 (+5.3% on a constant currency basis) as net revenues of Agricultural Equipment increased 5.4% while decreasing 17.4% for Construction Equipment.

Trucks and Commercial Vehicles posted revenues of €6.1 billion for the first nine months of 2013, a 2.6% decrease (+0.7% on a constant currency basis) over the same period a year ago. During the first nine months of 2013 Trucks and Commercial Vehicles delivered a total of 92,833 vehicles (including buses and special vehicles), representing a 1.2% increase over the same period in 2012. There was a 3.5% decrease in deliveries of light vehicles, while volumes were up 13.0% in medium and 2.4% in heavy vehicles. Deliveries were down 3.0% in EMEA and 9.3% in APAC, but up 21.8% in LATAM.

Powertrain reported revenues of €2.3 billion for the first nine months of 2013, representing an 11.4% (+12.3% on a constant currency basis) year-over-year increase, mainly driven by higher volumes. Sales to external customers accounted for 32% of total revenues, in line with the first nine months of 2012. In the first nine months Powertrain delivered a total of 387,900 engines, up 12% compared to the same period in 2012, to Trucks and Commercial Vehicles (31%) and Agricultural and Construction Equipment (30%), with the remaining 39% of sales to external customers. In addition, Powertrain delivered 46,511 transmissions and 114,010 axles, up 1.2% and 3.4% respectively from the same period 2012. 

Trading profit/(loss)
Group trading profit for the first nine months totaled €1,549 million, a decrease of €79 million compared to the same period of 2012 (-4.9%).  Trading margin in the first nine months decreased 0.5 p.p. to 8.2%. On a constant currency basis, trading profit decreased by 0.7%, primarily due to lower profitability from negative volume/mix, pricing pressures and negative exchange rate impacts affecting both Trucks and Commercial Vehicles and Construction Equipment. These adverse factors were offset by improved results for the Agricultural Equipment business driven primarily by positive pricing.

  9 months to September 30  
€ million 2013 2012(1) Change
Agricultural and Construction Equipment (CNH) 1,485 1,290  195
Trucks and Commercial Vehicles (Iveco) 7 299  (292)
Powertrain (FPT Industrial) 87 77  10
Eliminations and other
(30) (38)  8
Trading profit 1,549 1,628  (79)
Trading margin (%)                       8.2 8.7   
(1) For the first nine months of 2012, figures are provided on a restated basis due to the adoption of IAS 19 Revised.

Agricultural and Construction Equipment’s trading profit of totaled €1,485 million, up €195 million from the first nine months of 2012, with a trading margin of 12.3% (10.7% in the first nine months of 2012). Agricultural Equipment trading profit increased €200 million over the corresponding period in 2012 to €1,228 million and trading margin was 1.5 p.p. higher at 12.8% mainly due to positive net price realization, as well as improved volume/mix, which more than compensated for increased R&D expenditures and other operational costs. Construction Equipment reported a trading loss of €42 million, compared to trading profit of €10 million for the first nine months of 2012, primarily as a result of lower volumes and unfavorable product mix. Financial Services posted a trading profit of €299 million, a €47 million increase over the first nine months of 2012.

Trucks and Commercial Vehicles closed the first nine months of 2013 with atrading profit of €7 million, compared to €299 million for the corresponding period in 2012. The decrease was primarily attributable to negative volume/mix, pricing pressures, operational costs related to transition to Euro VI and unfavorable exchange rate effects.

Powertrain’s trading profittotaled €87 million for the first nine months, up €10 million compared to the corresponding period in 2012, with a trading margin of 3.7%, in line with the same period in 2012.

Operating profit/(loss)
For the nine months through September 2013, operating profit was €1,480 million, compared to €1,488 million for the corresponding period in 2012.

Profit/(loss) for the period
Net financial expense
totaled €344 million for the period, an increase of €10 million over the same period in 2012, mainly due to the increase in average net industrial.

Net profit for the first nine months was €747 million (€744 million for the same period in 2012), or €0.504 per share (€0.530 for the same period in 2012).

Profit attributable to owners of the parent was €616 million for the nine months of 2013 compared to €648 million for the same period in 2012.

Equity
Equity attributable to owners of the parent
of CNH Industrial at September 30, 2013 was €5,489 million compared to €4,628 at December 31, 2012.

Net debt
At September 30, 2013, net debt was €17.9 billion, up €1.9 billion compared to €16 billion at the beginning of the year.

Net industrial debt was €2,502 million at September 30, 2013, compared to €1,642 million at December, 31, 2012, with positive operating performance offset by a seasonal increase in working capital, sustained capital expenditures (mostly due to new product related initiatives), dividend payments and currency effects.

  Balances at
 
€ million 9/30/2013
12/31/2012
Change
Financial debt (21,273) (20,633) (640)
- Asset-backed financing (10,121) (9,708) (413)
- Other debt (11,152) (10,925) (227)
Other financial assets/(liabilities) (1) 99 24 75
Cash, cash equivalents and current securities 3,319 4,615 (1,296)
Net Debt (17,855) (15,994) (1,861)
Industrial Activities (2,502) (1,642) (860)
Financial Services (15,353) (14,352) (1,001)
(1) Includes positive and negative fair value of derivative financial instruments.

Significant events in the third quarter and subsequently
The deed for the merger of Fiat Industrial S.p.A. with and into CNH Industrial N.V. and the deed for the merger of CNH Global N.V. with and into CNH Industrial N.V. were executed on September 27 and 28, 2013, respectively, and the integration of these two companies was completed on September 29, 2013. At closing, CNH Industrial issued 1,348,867,772 common shares allotted to Fiat Industrial and CNH Global shareholders on the basis of the established exchange ratios. CNH Industrial also issued special voting shares (non-tradable) allotted to eligible Fiat Industrial and CNH Global shareholders who elected to also receive special voting shares in connection with the closing of the merger. On the basis of the requests received, CNH Industrial issued a total of 474,474,276 special voting shares. On September 30, 2013 CNH Industrial N.V. common shares began trading on the New York Stock Exchange and the Mercato Telematico Azionario managed by Borsa Italiana S.p.A.

Also in September, CNH Industrial was confirmed Sector Leader in the Dow Jones Sustainability Indices (DJSI) World, Europe and World Enlarged. In its 2013 assessment, RobecoSAM, the specialists in sustainable investment, assigned a score of 88/100 compared to an average of 49/100 for the universe of Industrial Engineering companies evaluated. Inclusion in the prestigious DJSI family of indices is limited to companies judged best-in-class in terms of their economic, environmental and social performance. The Group’s position as Sector Leader reflects the significant results achieved in a number of areas that led to the highest score in the environmental and social categories.

On October 9, 2013, CNH Capital LLC, a wholly-owned subsidiary of CNH Industrial N.V., completed a private offering of $500 million in aggregate principal amount of 3.250% notes due 2017. The notes were issued at par.

 

Commercial Register No.64236277 Legal notes | Credits