CNH Industrial


(26.89% stake, 41.68% of voting rights on issued capital)

Key consolidated figures of CNH Industrial for the year 2020 are as follows:

$ million20202019
Revenues in €22,74925,033(2,284)
Adjusted EBIT of Industrial Activities(1)4161,376(960)
Net income(695)906(1,601)
of which attributable to owners of the parent(750)874(1,624)
Net Industrial Debt(2)297(1,403)1,700
(1) Adjusted EBIT is a non-GAAP financial measure used to measure performance. Adjusted EBIT is defined as profit/(loss) before taxes, financial services results, industrial activities financial expenses, restructuring costs and certain non- recurring items. (2) Net Industrial debt is defined as net debt excluding the funded portion of the sell-liquidating financial receivables portfolio.


During 2020, the effects of the COVID-19 pandemic and the related actions of governments and other authorities to contain COVID-19 spread impacted CNH Industrial’s business, results and outlook. Many governments in countries, where CNH Industrial operates designated parts of its businesses as essential critical infrastructure businesses. This designation allows CNH Industrial to operate in support of its dealer and customers to the extent possible.

CNH Industrial’s priorities in addressing the effects of COVID-19 continue to be the health, safety and well-being of its employees, the continuity of its business from a liquidity, cost management and market presence perspective and supporting its dealers, customers, suppliers and the communities in which it operates. CNH Industrial has proactively implemented health and safety measures at its operations around the world. The measures taken beginning in the first quarter of 2020 to aggressively decrease operational and selling, general and administrative expenses have been effective. CNH Industrial also worked closely with its dealers during 2020, and, as necessary, provided them with short-term payment relief.

As a consequence of the significant decline in industry demand and other market conditions due to the economic disruption caused by the pandemic, during the second quarter of 2020 CNH Industrial reviewed its current manufacturing footprint and, consequently, reassessed the recoverability of certain assets. As a result, Agriculture recognized $111 million of impairment charges against tangible assets and $137 million of impairment charges against intangible assets. In the same quarter, Construction recognized impairment charges of $62 million against intangible and other long-lived assets, and Commercial and Specialty Vehicles recognized charges of $282 million in connection with new actions identified in order to realize the asset portfolio of vehicles sold under buyback commitments. These actions were taken as a result of the significant deterioration of the used vehicle markets in which the segment operates and the consequent impact on truck residual values. The segment also recognized other asset impairment charges of $7 million. Lastly, CNH Industrial performed a quantitative interim assessment of impairment for Construction goodwill, previously disclosed as being at risk of impairment. Having reassessed the expected future business performance of the segment and its projected cash flows, which deteriorated significantly, CNH Industrial recognized a charge of $576 million in the second quarter, representing the total impairment of Construction goodwill.

Starting from the easing of COVID-19 restrictions in the third quarter of 2020, a general improvement was noted in market demand and in customer sentiment. The improvement continued in the fourth quarter, despite increasing COVID-19 restrictions in most geographies.

Uncertainty remains about the future impacts on CNH Industrial’s end-markets and operations of renewed restrictions on social interactions and business operations until widespread vaccination is achieved.

CNH Industrial is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, its results of operations, financial condition and cash flows in 2021, which may also be significantly negatively impacted by, among other things, further restructuring actions and other non-cash asset impairments, price pressure on new and used vehicles, which may give rise to further reserve requirements, excess inventory, difficulty in collecting financial receivables and subsequent increased allowances for credit losses.


Revenues for 2020 were $25,984 million, a decrease of 7.3% (down 4.9% on a constant currency basis) compared to 2019, primarily due to a decrease of 7.2% (down 4.9% on a constant currency basis) compared to the prior year in net revenues of Industrial Activities due to adverse COVID-19 impacts on end markets and actions to lower channel inventory levels primarily in the first half of the year.

Net revenues for Agriculture were $10,916 million in 2020, flat compared to 2019 (up 3.4% on a constant currency basis), as favorable price realization in all regions and higher volumes in Rest of World were offset by lower volumes in North America and in Europe, due to the COVID-19 impact in the first half of the year.

For 2020, worldwide industry unit sales for tractors increased 12% compared to 2019, while worldwide industry sales for combines were up 8% compared to 2019. In North America, industry volumes in the over 140 hp tractor market sector were flat and combines were up 1%. Industry volumes for under 140 hp tractors were up 17%. European markets were down 4% and 7% for tractors and combines, respectively. In South America, tractor industry volumes increased 4% and combine industry volumes decreased 1%. Rest of World markets increased 14% for tractors and 17% for combines.

Net revenues for Construction were $2,170 million in 2020, down 21.6% compared to 2019 (down 18.7% on a constant currency basis), as a result of weaker market conditions due to the COVID-19 pandemic, mainly in the first half of the year, channel inventory destocking actions and a weaker pricing environment primarily in North America.

In 2020, Construction’s worldwide compact equipment industry sales were up 4% compared to 2019, and worldwide general equipment industry sales were up 10% compared to 2019, while worldwide road building and site equipment industry sales were down 8%.

Commercial and Specialty Vehicles' net revenues were $9,420 million in 2020, down 9.8% compared to 2019 (down 8.7% on a constant currency basis), primarily driven by the market slowdown in Europe due to the COVID-19 pandemic in the first half of the year.

Powertrain net revenues were $3,633 million in 2020, down 11.7% compared to 2019 (down 11.5% on a constant currency basis), due to lower sales volume, mainly in Europe, as a result of COVID-19 pandemic. Sales to external customers accounted for 52% of total net revenues (51% in 2019).

Financial Services reported net revenues of $1,807 million in 2020, down 9.5% compared to 2019 (down 5.4% on a constant currency basis), due to lower average portfolios in North America and Europe, negative impact from currency translation and lower used equipment sales, partially offset by a higher average portfolio in South America.

 Year % change
$ million20202019
Commercial and Specialty Vehicles9,42010,440-9.8
Elimination and other(1,847)(2,111)n.s.
Total Industrial Activities24,29226,169(7.2)
Financial Services1,8071,996-9.5
Eliminations and other(115)(141)n.s.

Adjusted EBIT

Adjusted EBIT of Industrial Activities was down 8.0% to $1,376 million in 2019, compared to $1,496 million in 2018, representing an Adjusted EBIT margin of 5.3%, down 10 basis points (“bps”) compared to 2018, mainly due to unfavorable volume and mix as well as raw material headwinds, which more than offset positive price realization and cost management actions. 

Adjusted EBIT of Agriculture was $900 million in 2019, a $198 million decrease compared to $1,098 million in 2018. Positive price realization, disciplined cost management, industrial efficiencies and a reduction in short-term incentive compensation expense were more than offset by lower wholesale volume and market and product mix, including negative industrial absorption primarily from the lower production levels (mainly in the second half of the year), as well as higher product costs as a result of increased raw material costs and tariffs. Adjusted EBIT margin decreased 80 bps to 8.2%. 

Adjusted EBIT of Construction was $50 million in 2019, a $19 million decrease compared to 2018, with an Adjusted EBIT margin of 1.8% (2.3% in 2018). Positive price realization was more than offset by unfavorable volume and mix in North America and rest of world markets, including negative industrial absorption, and higher product costs primarily related to increased raw material costs and tariffs, and costs associated with the product quality excellence initiative. 

Adjusted EBIT of Commercial and Specialty Vehicles was $188 million in 2019 ($285 million in 2018) and includes a $50 million gain realized in the third quarter from granting to Nikola Corporation access to certain Iveco technology as part of the $150 million in-kind contribution as consideration for the initial equity interest in Nikola. Adjusted EBIT was negatively impacted by higher product costs, foreign exchange transaction impacts, and the remeasurement of certain provisions completed in the fourth quarter, partially offset by favorable volume and mix, positive price realization and a reduction in short-term incentive compensation expense.

 Adjusted EBIT of Powertrain was $362 million in 2019, a $23 million decrease compared to $385 million in 2018 due to unfavorable volume and mix and higher product development investment geared towards the “Transform2Win” strategy initiatives, partially offset by positive price realization and product cost efficiencies. Adjusted EBIT margin was 8.8% in 2019, up 40 bps compared to 2018.

  YearChange2020 adjusted EBIT margin2019 adjusted EBIT margin
$ million20202019   
Agriculture856900(44)7.8%8.2 %
Construction(193)50(243)(8.9)%1.8 %
Commercial and Specialty Vehicles(169)188(357)(1.8) %1.8 %
Powertrain223362(139)6.1 %8.8 %
Unallocated items, elimination and other(301)(124)(177)n.s.n.s.
Adjusted EBIT4161,873(960)1.7 %5.3 %

The following table is the reconciliation of Net income to Adjusted EBIT (non-GAAP measure).

$ million20202019
Consolidated loss(profit)(695)906
Consolidated income tax benefit (expense)(55)302
Financial services(382)(493)
Add back:  
Financial expenses289362
Restructuring costs56112
Goodwill impairment loss576
Other discrete items (1)627
Adjusted EBIT of Industrial Activities4161,376
(1) In 2020 this item primarily includes impairment of intangible and other long-lived assets, as well assets optimization charges, and the negative impact form the costs recognized by a Chinese joint venture, accounted for under the equity method, for valuation allowances against deferred tax assets and restructuring actions. (2) In 2019, this item mainly included the other asset optimization charges for $165 million, $20 million pre-tax non-cash settlement charge resulting from the purchase of a group annuity
$ million12/31/202112/31/2019Change
Third party debt(1)(26,618)(25,413)(1,205)
Cash and cash equivalents9,6295,7733,856
Other/financial asset/(liabilities)(2)11510105
(Net debt)/Cash(3)(16,874)(19,630)2,756
Industrial Activities (1,403)1,403
Financial Services(16,874)(18,227)1,353
(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 of Financial Services. (2) Including fair value of derivative financial instruments. (3) The net intersegment receivable/payable balance recorded by Financial Services relating to Industrial Activities was -$134 million and -$194 million as of 31 December 2020 and 31 December 2019, respectively.

2021 Outlook (US GAAP)(1)

CNH Industrial’s 2021 outlook assumes a progressive improvement in economic conditions as populations and markets adjust to the new circumstances. CNH Industrial is providing the following 2021 outlook for its Industrial Activities:

  • Net sales up between 8% and 12% year on year including currency translation effects;
  • Free cash flow positive between $0.4 billion and $0.8 billion;
  • R&D expenses growing to 4.5% of net sales, sales, general expenses lower/equal to 7.5% of net sales, and capital expenditures above 2.5% of net sales.
Commercial Register No.64236277 Note legali | Credits