CNH Industrial

(26.96% stake, 39.98% of the voting rights issued capital.
In addition, FCA holds a 1.17% stake, 1.74% of the voting rights)

 

The key consolidated figures of CNH Industrial in the first nine months of 2015 (drawn up in accordance with IFRS) are as follows:

  9 months
to September 30
QIII
$ million 2015 2014
2015 2014
Net revenues
19,095 24,469 5,968 7,817
Trading profit (loss)
991 1,881 267 570
Operating profit (loss)
902
1,741 221 505
Profit (loss) before taxes
332 1,224 (63) 326
Profit (loss) for the period
95 783 (112) 234
Profit (loss) attributable to owners of the parent
98789(108)245
$ million 9/30/2015 12/31/2014
Change
Total assets
48,952 54,441(5,489)
Net debt
(21,456) (23,590)2,134
- of which: Net industrial debt
(3,299) (2,874) (425)
Equity attributable to owners of the parent
6,895 7,534 (639)

Net revenues

Net revenues of the CNH Industrial Group in the first nine months of 2015 total $19,095 million, down 22% compared to the first nine months of 2014 (-10.7% on a constant currency basis). Net revenues of Industrial Activities are $17,980 million, down 22.9% (-11.4% on a constant currency basis).
In particular, the decline for Agricultural Equipment (-24.2% on a constant currency basis) is driven by lower volumes in all regions. Net sales also decreased in Construction Equipment (-18.2% on a constant currency basis) due principally to the decrease in volumes, primarily in LATAM, and in Powertrain (-8.2% on a constant currency basis) as a result of lower sales to captive clients. Net of the negative impact of currency translation, net revenues of Commercial Vehicles show an increase in revenues of approximately 7.7%, primarily driven by a favorable volume in EMEA, whereas in LATAM revenues decreased due to the decline of the Brazilian market.
Financial Services
show an increase of 5% on a constant currency basis, owing mainly to higher sales of equipment formerly on operating leases.
In the third quarter of 2015, net revenues total $6 billion, down $1.9 billion (-23.77%; -12.3% on a constant currency basis) compared to $7.8 billion in the third quarter of 2014.

  9 months
to September 30
Change
$ million 2015 2014 amount%
Agricultural Equipment
8,043
11,801 (3,758)-31.8
Construction Equipment 1,933
2,546 (613)-24.1
Commercial Vehicles
6,860
7,675 (815)-10.6
Powertrain 2,656
3,484 (828)-23.8
Eliminations and other
(1,512)
(2,177) 665n.s.
Total Industrial Activities
17,980
23,329 (5,349)-22.9
Financial Services
1,450
1,541 (91)-5,9
Eliminations and other
(335)
(401) 66n.s.
Net revenues
19,095
24,469 (5,374)-22.0

Trading profit (loss)

Trading profit in the first nine months of 2015 is $991 million, down $890 million
(-47.3%) compared to the corresponding period of 2014. The trading margin is 2.5%, compared to 5.2% in the first nine months of 2014.
Trading profit of Industrial Activities totals $599 million, down $889 million compared to the first nine months of 2014, with a trading margin of 3.3%, compared to 6.4% in the same period of 2014.
The reduction in the trading profit of Agricultural Equipment was driven by negative volume and mix primarily in NAFTA, partially offset by purchasing efficiencies and structural cost reductions.
Construction Equipment
reported lower trading profit in the first nine months of 2015 compared to the corresponding period of 2014 due to the negative impact of lower volumes in LATAM, only partially offset by cost containment actions.
Commercial Vehicles’
trading profit improved due to higher volumes, mainly in EMEA, favorable mix and a reduction in selling, general and administrative expenses.
Trading profit of Financial Services is flat compared with the first nine months of 2014.

  9 months
to September 30
 
$ million 2015 2014 Change
Agricultural Equipment
434
1,451 (1,017)
Construction Equipment 38
64 (26)
Commercial Vehicles
79
(111) 190
Powertrain 105
147 (42)
Eliminations and other
(57)
(63) 6
Total Industrial Activities
599
1,488 (889)
Financial Services
392
393(1)
Trading profit
991
1,881(890)

Operating profit (loss)

Restructuring costs in the first nine months of 2015 amount to $48 million and mainly related to actions in Agricultural Equipment and Commercial Vehicles as part of the Efficiency Program launched in 2014. Restructuring costs in the first nine months of 2014 were equal to $116 million and referred mainly to the same program.

Profit (loss) for the period

In the first nine months of 2015 net financial expenses are recorded for $608 million, including an unusual charge of $150 million due to the remeasurement of Venezuelan net monetary assets denominated in bolivars following the adoption of the SIMADI exchange rate.
In the first nine months of 2014 net financial expenses were $585 million and included an unusual charge of $64 million due to the remeasurement of Venezuelan net monetary assets denominated in bolivars.
Excluding these usual charges for both years, net financial expenses decreased by $63 million compared to the first nine months of 2014, owing to a more favorable cost of funding and a lower average indebtedness.

Income taxes total $237 million in the first nine months of 2015 ($441 million in the first nine months of 2014). Excluding the impact of the exceptional pre-tax charge relating to the remeasurement of the Venezuelan operations, for which no corresponding tax benefit has been booked, and the impact deriving from the inability to record deferred tax assets on losses in certain jurisdictions, the effective tax rate for the first nine months of 2015 was 37%.

Net debt

Net industrial debt at September 30, 2015 is $3,299 million compared to $2,874 million at December 31, 2014, an increase of $425 million. Cash generation in the operations before change in working capital contributed for $918 million. Change in working capital negatively impacted by $933 million, mainly due to the increase in inventories. Capital expenditures activity totaled $704 million. Currency translation differences positively affected net industrial debt by $471 million.

$ million
9/30/2015 12/31/2014 Change
Total debt
(26,202)
(29,701)
3,499
- asset-backed financing
(12,498)
(13,587)
1,089
- other debt
(13,704)
(16,114)
2,410
Other financial assets and liabilities (1) 247
(30)
277
Cash and cash equivalents
4,499
6,141
(1,642)
Net debt
(21,456)
(23,590) 2,134
Industrial Activities
(3,299)
(2,874) (425)
Financial Services
(18,157)
(20,716) 2,559
(1) Includes the positive and negative fair value of derivative financial instruments.

Significant events in the third quarter of 2015

In September 2015, CNH Industrial was confirmed as Industry Leader in the Dow Jones Sustainability Indices (DJSI) World and Europe. The Company was also named as leader in the Capital Goods Industry Group. The 2015 assessment resulted in a score of 91/100 for CNH Industrial, compared to an average of 52/100 for the participating companies in the Machinery and Electrical Equipment industry. All companies chosen for consideration in the indices are evaluated on their economic, environmental and social performance by RobecoSAM, investment specialists focused exclusively on Sustainability Investing.

Commercial Register No.64236277 Legal notes | Credits