Key consolidated data of CNH Industrial for the year 2018 are as follows:

  Year Change
$ million 2018 2017 (1)  
Revenues 29,736 27,624   2,112
Revenues in € 25,179 24,739   440
Adjusted EBIT (2) 2,028 1,507   521
Net income (loss) (3) 1,399 456   943
of which attributable to owners the parents 1,368 439   929
Net Industrial Debt (4) (640) (1,023)   383
(1) 2017 data have been recast following the retrospective adoption, on 1 January 2018, of the updated accounting standard for revenue recognition (IFRS 15). (2) Adjusted EBIT is a non-GAAP financial measure used to measure performance. Adjusted EBIT is defined as profit/(loss) before taxes, financial income (expense) of financial activities, restructuring costs, and certain non- recurring items. (3) 2018 includes a gain of €446 million related to the modification of a healthcare plan in the U.S. (4) Net Industrial debt is defined as net debt excluding the funded portion of the self-liquidating financial receivables portfolio.


Revenues in the year 2018 were $29.736 million, an increase of 7.6% (up 8.5% on a constant currency basis) compared to 2017, primarily due to an improvement in net revenues in each segment of Industrial Activities which were $27,927 million in 2018, an increase of 8.4% (up 9.1% on a constant currency basis) compared to the prior year.

Net revenues for Agricultural Equipment were $11,786 million in 2018, a 10.3% increase (up 13.5% on a constant currency basis) compared to 2017. The increase was driven by a sustained price realization performance, coupled with a stabilization of end-user demand in most of our markets, including emerging evidence of a replacement cycle in the row crop sector in North America. For 2018, worldwide agricultural equipment industry unit sales increased 3%. In North America, industry volumes in the over 140 h.p. tractor market sector were up 5% and combines were up 10%. Industry volumes for under 140 h.p. tractors were up 6%. EMEA markets were down 8% for tractors and up 4% for combines. LATAM tractor industry volumes decreased 1% and combine industry volumes increased 10%. APAC markets increased 3% for tractors and 2% for combines.

Net revenues for Construction Equipment were $3,021 million in 2018, a 19.4% increase (up 20.2% on a constant currency basis) compared to 2017, primarily due to increased end-user demand in all regions and favorable net price realization. In 2018, Construction Equipment’s worldwide heavy industry volumes were up 20% and light industry volumes were up 17% compared to 2017. Overall industry volumes increased in all regions.

Commercial Vehicles net revenues were $10,933 million in 2018, an increase of 3.5% compared to 2017 (up 2.4% on a constant currency basis), as a result of positive pricing and a favorable product mix.

Powertrain net revenues were $4,557 million in 2018, an increase of 4.3% (up 2.8% on a constant currency basis) compared to 2017, due to higher sales volume in engine applications. Sales to external customers accounted for 50% of total net revenues (48% in 2017).

Financial Services reported net revenues of $1,996 million in 2018, a 1.6% decrease (up 1.7% on a constant currency basis) compared to 2017, primarily due to a lower average portfolio balance in North America.

$ million 2018 2017(1) % change
Agricultural Equipment 11,786 10,683  10.3
Construction Equipment 3,021 2,530  19.4
Commercial Vehicles 10,933 10,562  3.5
Powertrain 4,557 4,371  4.3
Eliminations and other (2,370) (2,375)  -
Total Industrial Activities 27,927 25,771  8.4
Financial Services 1,996 2,028  -1.6
Eliminations and other (187) (175)  -
Revenues 29,736 27,624  7.6
(1) 2017 data have been recast following the retrospective adoption, on 1 January 2018, of the updated accounting standard for revenue recognition (IFRS 15).

Adjusted EBIT

Adjusted EBIT of Industrial Activities was up 48.1% to $1,496 million in 2018, compared to $1,010 million in 2017, with an Adjusted EBIT margin of 5.4%, up 1.5 percentage points (“p.p.”) compared to 2017.

Adjusted EBIT for Agricultural Equipment was $1,098 million in 2018, a $386 million increase compared to $712 million in 2017. The increase was mainly due to positive net price realization and favorable volume in most of our regions. Adjusted EBIT margin increased 2.6 p.p. to 9.3%. The Company continues to invest in its product development program for precision farming and compliance with Stage V emissions requirements.

Adjusted EBIT of Construction Equipment was $69 million in 2018, a $120 million increase compared to 2017. Adjusted EBIT margin increased 4.3 p.p. to 2.3%. The increase was due to higher sales volume, favorable mix and positive net price realization, more than offsetting raw material cost increases, mainly in North America.

Adjusted EBIT of Commercial Vehicles was $285 million in 2018, a 57.5% increase compared to 2017, mainly due to a favorable product mix in light duty trucks and buses, and to the focus on sales of alternative propulsion solutions in heavy duty trucks. Positive price realization in trucks and manufacturing efficiencies also contributed to the improved results. Adjusted EBIT margin increased 0.9 p.p. to 2.6%.

Adjusted EBIT of Powertrain was $385 million in 2018, a $23 million increase compared to $362 million in 2017. The improvement was mainly due to a favorable product mix and manufacturing efficiencies, partially offset by higher product development spending. Adjusted EBIT margin increased 0.1 p.p. to 8.4% compared to 2017.

  Year Change
$ million 2018 2017(1)
Agricultural Equipment 1,098 712  386 9.3% 6.7%
Construction Equipment 69 (51)  120 2.3% -2.0%
Commercial Vehicles 285 181  104 2.6% 1.7%
Powertrain 385 362  23 8.4% 8.3%
Unallocated items, eliminations and other (341) (194)  (147) - -
Total Industrial Activities 1,496 1,010  486 5.4% 3.9%
Financial Services 532 497  35 26.7% 24.5%
Eliminations and other - -  - - -
Adjusted EBIT 2,028 1,507  521 6.8% 5.5%
(1) Concurrently with the changes following the adoption of the new accounting standards, CNH Industrial reviewed the metrics on which the operating segments will be assessed. Starting in 2018, the Chief Operating Decision Maker began to assess segment performance and make decisions about resource allocation based upon Adjusted EBIT and Adjusted EBITDA.

Net industrial debt

Net industrial debt at 31 December 2018 was $640 million compared to $1,023 million at 31 December 2017. The decrease was primarily due to a significant cash generation from operating activities of $0.6 billion and to positive foreign exchange translation impacts on euro denominated debt, partially offset by dividend payments and by purchase of treasury shares.

$ million 12/31/2018 12/31/2017 (1) Change
Third party debt (1) (24,543) (26,014)   1,471
Cash and cash equivalents 5,803 6,200   (397)
Other/financial asset/(liabilities) (2) (10) (21)   11
(Net debt)/Cash (3) (18,750) (19,835)   1,085
Industrial Activities (640) (1,023)   383
Financial Services (18,110) (18,812)   702
(1) As a result of the role played by the central treasury, debt for industrial Activities also includes funding raised by the central treasury on behalf Financial Services. (2) Including fair value of derivative financial instruments. (3) The net intersegment receivable/payable balance owed by Financial Services to Industrial Activities was $71 million and $642 million as of 31 December 2018 and 31 December 2017, respectively.

2019 Outlook (US GAAP) (1)

The performance achieved in 2018 confirms CNH Industrial on track with a profitable growth trajectory, despite a softer macroeconomic and business environment in the second part of the year, caused by escalating trade tensions and related tariffs across global markets, other economic and political uncertainties (including those concerning the outcome of the Brexit negotiations), and a general expectation of a slowdown in global economic growth. In addition, the emerging megatrends in the industries where CNH Industrial competes, such as digitalization, automation, and electrification, entail a re-assessment of the go to market approach and of the capital investment requirements in new technologies for new products and customer solutions. Subject to this evolving scenario, CNH Industrial is defining 2019 guidance as follows:

  • Net sales of Industrial Activities at approximately $28 billion
  • Adjusted diluted EPS(2) up between 5% and 10% to previous year at a range of $0.84 to $0.88 per share
  • Net industrial debt at the end of 2019 between $0.4 billion and $0.2 billion, with investments in research and development expected to increase over 5% and in capital expenditures by over 25% compared to 2018, with a growing portion of this spend to support development on key megatrends (digitalization, electrification, automation and servitization) and engine regulatory capital investments.

(1) 2019 guidance does not include any impacts deriving from the gain resulting from the modification of the healthcare plan in the U.S. previously mentioned and anticipated on April 16, 2018, as this gain has been considered non-recurring and therefore treated as an adjusting item for the purpose of the adjusted diluted EPS calculation. In addition, 2019 guidance does not include any impacts deriving from possible further repurchases of Company’s shares under the plan authorized by the AGM on 13 April 2018.
(2) Outlook is not provided on diluted EPS, the most comparable GAAP financial measure of this non-GAAP financial measure, as the income or expense excluded from the calculation of adjusted diluted EPS and instead included in the calculation of diluted EPS are, by definition, not predictable and uncertain.


Commercial Register No.64236277 Legal notes | Credits