LONDON, April 27, 2017 /PRNewswire/ --
Financial results presented under U.S.
GAAP(1)
- Industrial Activities revenues up 6.1% (up 6.5% on a
constant currency basis) driven by demand for agricultural
equipment in the LATAM region, and in the Commercial Vehicles and
Powertrain segments
- Operating profit(2)(3) of Industrial Activities
at $219 million, an increase of 23%,
at an operating margin of 4.1% driven by volume leverage in
Agricultural Equipment and Powertrain
- Adjusted net income(2)(3) was $58 million in the first quarter of 2017, with
adjusted diluted EPS(2)(3) of $0.04
- Net industrial debt(2)(3) was $2.1 billion at March 31,
2017, with industrial operations cash flow improved by
$0.1 billion compared to the first
quarter of 2016
- In April, CNH Industrial Capital LLC issued $500 million in principal amount of 4.375% Notes
due 2022, and today the Company announced the early redemption of
all of the outstanding $636 million in principal amount of
Case New Holland Industrial Inc. 7⅞% Senior Notes due
2017
- Full year guidance reaffirmed
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Summary of
Results ($ million except
EPS)
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Three Months ended
March 31,
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2017
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2016
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Change
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Revenues
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5,681
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5,372
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5.8%
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Net income
(loss)
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49
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(513)
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562
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Adjusted net
income
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58
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1
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57
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Basic EPS
($)
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0.03
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(0.38)
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0.41
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Diluted EPS
($)
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0.03
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(0.38)
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0.41
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Adjusted diluted EPS
($)
|
0.04
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0.00
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0.04
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(1)
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CNH Industrial
reports quarterly and annual consolidated financial results under
U.S. GAAP and EU-IFRS. The tables and discussion related to the
financial results of the Company and its segments shown in this
press release are prepared in accordance with U.S. GAAP. Financial
results under EU-IFRS are shown in specific tables at the end of
this press release.
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(2)
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This item is a
non-GAAP financial measure. Refer to the "Non-GAAP Financial
Information" section of this press release for information
regarding non-GAAP financial measures.
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(3)
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Refer to the
specific table in the "Other Supplemental Financial Information"
section of this press release for the reconciliation between the
non-GAAP financial measure and the most comparable GAAP financial
measure.
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CNH Industrial N.V. (NYSE:CNHI / MI:CNHI) today announced
consolidated revenues of $5,681
million for the first quarter of 2017, up 5.8% compared to
the first quarter of 2016. Net sales of Industrial Activities were
$5,384 million in the first quarter
of 2017, up 6.1% compared to the first quarter of 2016. Reported
net income was $49 million for the
first quarter of 2017. Adjusted net income was $58 million for the quarter.
Operating profit of Industrial Activities was $219 million for the first quarter of 2017, a
$41 million increase compared to the
first quarter of 2016, with an operating margin of 4.1%, up
0.6 p.p. compared to the first quarter of 2016.
Income taxes were $48 million in
the first quarter of 2017 ($40
million in the first quarter of 2016). Adjusted income
taxes(1)(2) for the first quarter of 2017 were
$51 million ($43 million in the first quarter of 2016). The
adjusted effective tax rate (adjusted ETR)(1)(2) was 56%
(91% in the first quarter of 2016), and was impacted by unbenefited
losses in certain jurisdictions.
Net industrial debt of $2.1
billion at March 31, 2017
increased by $0.6 billion from
December 31, 2016. Industrial
operations cash flow was an outflow of $0.5
billion in the first quarter of 2017 as a result of
increased inventory to meet seasonal demand. Industrial operations
cash flow improved $0.1 billion
compared to the first quarter of 2016. Total debt of $24.5 billion at March 31, 2017, was down $0.8 billion compared to December 31,
2016. As of March 31, 2017, available
liquidity(1)(2) was $7.6
billion, down $1.2 billion compared to December 31,
2016. In April 2017, CNH Industrial
Capital LLC issued $500 million in principal amount of 4.375%
Notes due 2022, and the Company announced today the early
redemption of all of the outstanding $636
million in principal amount of Case New Holland Industrial
Inc. 7⅞% Senior Notes due 2017.
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(1)
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This item is a
non-GAAP financial measure. Refer to the "Non-GAAP Financial
Information" section of this press release for information
regarding non-GAAP financial measures.
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(2)
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Refer to the
specific table in the "Other Supplemental Financial Information"
section of this press release for the reconciliation between the
non-GAAP financial measure and the most comparable GAAP financial
measure.
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Segment Results
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CNH
INDUSTRIAL
Revenues and
Operating profit (loss) by Segment ($
million)
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Revenues
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Operating profit
(loss)(2)
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Three Months ended
March 31,
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Three Months ended
March 31,
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2017
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2016
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%
change
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% change excl.
FX(1)
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2017
Profit
|
2016
Profit
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$
change
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2017
Margin
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2016
Margin
|
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2,346
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2,124
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10.5
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8.5
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Agricultural
Equipment
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159
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90
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69
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6.8%
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4.2%
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523
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536
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-2.4
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-2.8
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Construction
Equipment
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(22)
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14
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-36
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(4.2)%
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2.6%
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2,091
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2,045
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2.2
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4.7
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Commercial
Vehicles
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28
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38
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-10
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1.3%
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1.9%
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1,002
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882
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13.6
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16.9
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Powertrain
|
74
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53
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21
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7.4%
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6.0%
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(578)
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(511)
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-
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-
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Eliminations and
other
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(20)
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(17)
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-3
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-
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-
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5,384
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5,076
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6.1
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6.5
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Total
Industrial Activities
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219
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178
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41
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4.1%
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3.5%
|
|
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396
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388
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2.1
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-1.0
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Financial
Services
|
120
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130
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-10
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30.3%
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33.5%
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(99)
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(92)
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-
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-
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Eliminations and
other
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(82)
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(76)
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-6
|
-
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-
|
|
|
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5,681
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5,372
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5.8
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6.2
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Total
|
257
|
232
|
25
|
4.5%
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4.3%
|
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(1)
"Change excl. FX" or "constant currency" is a non-GAAP financial
measure. Refer to the "Non-GAAP Financial Information" section of
this press release for information regarding non-GAAP financial
measures.
(2)
Operating profit of Industrial Activities (a non-GAAP financial
measure) is defined as net sales less cost of goods sold, selling,
general and administrative expenses, and research and development
expenses. Operating profit of Financial Services (a non-GAAP
financial measure) is defined as revenues less selling, general and
administrative expenses, interest expense and certain other
operating expenses.
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Agricultural Equipment's net sales increased 10.5% in the
first quarter of 2017 compared to the first quarter of 2016 (up
8.5% on a constant currency basis), as a result of a strong rebound
in demand in LATAM and the continuation of positive market momentum
in APAC. Revenue in NAFTA and EMEA were flat to slightly down due
to a weak demand environment, partially mitigated by positive
pricing.
Operating profit was $159 million
in the first quarter ($90 million in
the first quarter of 2016). Operating margin increased 2.6 p.p. to
6.8% compared to the first quarter of 2016, as a result of
increased revenues in LATAM and APAC, as well as improved fixed
cost absorption, disciplined net price realization and
manufacturing efficiencies.
Construction Equipment's net sales decreased 2.4% in the
first quarter of 2017 compared to the first quarter of 2016 (down
2.8% on a constant currency basis), as a result of a 5% decline in
heavy industry demand in NAFTA and continued weak markets in EMEA
and LATAM, partially mitigated by market share gains in NAFTA.
Operating loss was $22 million in
the first quarter of 2017 (operating profit of $14 million in the first quarter of 2016).
Results were affected by a planned slower production schedule in
the quarter to maintain appropriate levels of channel inventory, in
response to continuing weak market demand. The results were also
impacted by a negative price environment driven primarily by sales
channel mix in NAFTA, an unfavorable foreign exchange impact on
product cost and promotional expenses related to the launch of the
new mini-excavator family.
Commercial Vehicles' net sales increased 2.2% in the
first quarter of 2017 compared to the first quarter of 2016 (up
4.7% on a constant currency basis), as a result of favorable truck
and bus volume, partially offset by lower specialty vehicles
volumes. In LATAM, recoveries in Argentinian truck demand more than
offset Brazilian weakness.
Operating profit was $28 million
for the first quarter of 2017 (operating margin of 1.3%) compared
to $38 million in the first quarter of 2016. The decrease was
mainly due to an unfavorable product and market mix in EMEA, lower
specialty vehicles volumes and negative foreign currency impacts,
partially offset by manufacturing efficiencies and material cost
reductions.
Powertrain's net sales increased 13.6% in the first
quarter of 2017 compared to the first quarter of 2016
(up 16.9% on a constant currency basis), as a result of higher
volumes. Sales to external customers accounted for 45% of total net
sales (44% in the first quarter of 2016).
Operating profit was $74 million
for the first quarter of 2017, a $21
million increase compared to the first quarter of 2016, with
an operating margin of 7.4%, up 1.4 p.p. compared to the first
quarter of 2016 as a result of higher volumes and manufacturing
efficiencies.
Financial Services' revenues totaled $396 million in the first quarter of 2017, an
increase of 2.1% compared to the first quarter of 2016 (down 1.0%
on a constant currency basis). In the first quarter of 2017, retail
loan originations (including unconsolidated joint ventures) were
$1.9 billion, flat compared to the
first quarter of 2016. The managed portfolio (including
unconsolidated joint ventures) was $24.7
billion as of March 31, 2017
(of which retail was 64% and wholesale 36%), down $0.2 billion compared to March 31, 2016.
Net income was $87 million in the
first quarter of 2017, flat compared to the first quarter of
2016.
2017 Outlook
CNH Industrial is reaffirming its 2017 guidance(1) as
follows:
- Net sales of Industrial Activities between $23 billion and $24 billion;
- Adjusted diluted EPS(2) between $0.39 and $0.41;
- Net industrial debt at the end of 2017 between $1.4 billion and $1.6 billion.
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(1)
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At the exchange
rate of 1.05 EUR/USD.
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(2)
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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.
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About CNH Industrial
CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in
the capital goods sector with established industrial experience, a
wide range of products and a worldwide presence. Each of the
individual brands belonging to the Company is a major international
force in its specific industrial sector: Case IH, New Holland
Agriculture and Steyr for tractors and agricultural machinery; Case
and New Holland Construction for earth moving equipment; Iveco for
commercial vehicles; Iveco Bus and Heuliez Bus for buses and
coaches; Iveco Astra for quarry and construction vehicles; Magirus
for firefighting vehicles; Iveco Defence Vehicles for defence and
civil protection; and FPT Industrial for engines and transmissions.
More information can be found on the corporate website:
www.cnhindustrial.com
Additional Information
Today, at 3:30 p.m. CEST /
2:30 p.m. BST / 9:30 a.m. EDT, management will hold a conference
call to present 2017 first quarter results to financial analysts
and institutional investors. The call can be followed live online
at: http://bit.ly/CNH_Industrial_Q1_2017 and a recording will be
available later on the Company's website (www.cnhindustrial.com). A
presentation will be made available on the CNH Industrial website
prior to the call.
Non-GAAP Financial Information
CNH Industrial monitors its operations through the use of
several non-GAAP financial measures. CNH Industrial's management
believes that these non-GAAP financial measures provide useful and
relevant information regarding its results and allow management and
investors to assess CNH Industrial's operating trends, financial
performance and financial position. Management uses these non-GAAP
measures to identify operational trends, as well as make decisions
regarding future spending, resource allocations and other
operational decisions as they provide additional transparency with
respect to our core operations. These non-GAAP financial measures
have no standardized meaning presented in U.S. GAAP or EU-IFRS and
are unlikely to be comparable to other similarly titled measures
used by other companies due to potential differences between the
companies in calculations. As a result, the use of these non-GAAP
measures has limitations and they should not be considered as
substitutes for measures of financial performance and financial
position as prepared in accordance with U.S. GAAP and/or
EU-IFRS.
CNH Industrial non-GAAP financial measures are defined as
follows:
- Operating Profit under U.S. GAAP: Operating Profit of
Industrial Activities is defined as net sales less cost of goods
sold, selling, general and administrative expenses, and research
and development expenses. Operating Profit of Financial Services is
defined as revenues less selling, general and administrative
expenses, interest expense and certain other operating
expenses.
- Trading Profit under EU-IFRS: Trading Profit is derived from
financial information prepared in accordance with EU-IFRS and is
defined as net revenues less cost of sales, selling, general and
administrative costs, research and development costs, and other
operating income and expenses.
- Operating Profit under EU-IFRS: Operating Profit under EU-IFRS
is computed starting from Trading Profit under EU-IFRS plus/minus
restructuring costs, other income (expenses) that are unusual in
the ordinary course of business (such as gains and losses on the
disposal of investments and other unusual items arising from
infrequent external events or market conditions).
- Adjusted Net Income (Loss): is defined as net income (loss),
less restructuring charges and non-recurring items, after tax. In
particular, non-recurring items are specifically disclosed items
that management considers rare or discrete events that are
infrequent in nature and not reflective of on-going operational
activities.
- Adjusted Diluted EPS: is computed by dividing Adjusted Net
Income (loss) attributable to CNH Industrial N.V. by a
weighted-average number of common shares outstanding during the
period that takes into consideration potential common shares
outstanding deriving from the CNH Industrial share-based payment
awards, when inclusion is not anti-dilutive.
- Adjusted Income Taxes: is defined as income taxes less the tax
effect of restructuring expenses and non-recurring items and
non-recurring tax charges.
- Adjusted Effective Tax Rate (Adjusted ETR): is computed by
dividing a) adjusted income taxes by b) income (loss) before income
taxes and equity in income of unconsolidated subsidiaries and
affiliates, less restructuring expenses and non-recurring
items.
- Net Debt and Net Debt of Industrial Activities (or Net
Industrial Debt): CNH Industrial provides the reconciliation of Net
Debt to Total Debt, which is the most directly comparable measure
included in the consolidated balance sheets. Due to different
sources of cash flows used for the repayment of the debt between
Industrial Activities and Financial Services (by cash from
operations for Industrial Activities and by collection of financing
receivables for Financial Services), management separately
evaluates the cash flow performance of Industrial Activities using
Net Debt of Industrial Activities.
- Available Liquidity: is defined as cash and cash equivalents
plus restricted cash and undrawn committed facilities.
- Change excl. FX or Constant Currency: CNH Industrial discusses
the fluctuations in revenues and certain non-GAAP financial
measures on a constant currency basis by applying the prior year
exchange rates to current year's values expressed in local currency
in order to eliminate the impact of foreign exchange rate
fluctuations.
The tables attached to this press release provide
reconciliations of the non-GAAP measures used in this press release
to the most directly comparable GAAP measures.
Forward-looking statements
All statements other than statements of historical fact
contained in this earning release including statements regarding
our competitive strengths; business strategy; future financial
position or operating results; budgets; projections with respect to
revenue, income, earnings (or loss) per share, capital
expenditures, dividends, capital structure or other financial
items; costs; and plans and objectives of management regarding
operations and products, are forward-looking statements. These
statements may include terminology such as "may", "will", "expect",
"could", "should", "intend", "estimate", "anticipate", "believe",
"outlook", "continue", "remain", "on track", "design", "target",
"objective", "goal", "forecast", "projection", "prospects", "plan",
or similar terminology. Forward-looking statements are not
guarantees of future performance. Rather, they are based on current
views and assumptions and involve known and unknown risks,
uncertainties and other factors, many of which are outside our
control and are difficult to predict. If any of these risks and
uncertainties materialize or other assumptions underlying any of
the forward-looking statements prove to be incorrect, the actual
results or developments may differ materially from any future
results or developments expressed or implied by the forward-looking
statements. Factors, risks and uncertainties that could cause
actual results to differ materially from those contemplated by the
forward-looking statements include, among others: the many
interrelated factors that affect consumer confidence and worldwide
demand for capital goods and capital goods-related products;
general economic conditions in each of our markets; changes in
government policies regarding banking, monetary and fiscal
policies; legislation, particularly relating to capital
goods-related issues such as agriculture, the environment, debt
relief and subsidy program policies, trade and commerce and
infrastructure development; government policies on international
trade and investment, including sanctions, import quotas, capital
controls and tariffs; actions of competitors in the various
industries in which we compete; development and use of new
technologies and technological difficulties; the interpretation of,
or adoption of new, compliance requirements with respect to engine
emissions, safety or other aspects of our products; production
difficulties, including capacity and supply constraints and excess
inventory levels; labor relations; interest rates and currency
exchange rates; inflation and deflation; energy prices; prices for
agricultural commodities; housing starts and other construction
activity; our ability to obtain financing or to refinance existing
debt; a decline in the price of used vehicles; the resolution of
pending litigation and investigations on a wide range of topics,
including dealer and supplier litigation, follow-on private
litigation in various jurisdictions after the recently settled EU
antitrust investigation announced on July
19, 2016, intellectual property rights disputes, product
warranty and defective product claims, and emissions and/or fuel
economy regulatory and contractual issues; our pension plans and
other post-employment obligations; political and civil unrest;
volatility and deterioration of capital and financial markets,
including further deterioration of the Eurozone sovereign debt
crisis, possible effects of Brexit, political evolutions in
Turkey, terror attacks in
Europe and elsewhere, and other
similar risks and uncertainties and our success in managing the
risks involved in the foregoing. Further information concerning
factors, risks, and uncertainties that could materially affect the
Company's financial results is included in our annual report
on Form 20-F for the year ended December 31,
2016, prepared in accordance with U.S. GAAP and in the
Company's EU Annual Report at December 31, 2016, prepared in
accordance with EU-IFRS. Investors should refer to and consider the
incorporated information on risks, factors, and uncertainties in
addition to the information presented here.
Forward-looking statements speak only as of the date on which
such statements are made. Furthermore, in light of ongoing
difficult macroeconomic conditions, both globally and in the
industries in which we operate, it is particularly difficult to
forecast our results and any estimates or forecasts of particular
periods that we provide in this earnings release are uncertain.
Accordingly, investors should not place undue reliance on such
forward-looking statements. We can give no assurance that the
expectations reflected in our forward-looking statements will prove
to be correct. Our outlook is based upon assumptions relating to
the factors described in the earnings release, which are sometimes
based upon estimates and data received from third parties. Such
estimates and data are often revised. Our actual results could
differ materially from those anticipated in such forward-looking
statements. We undertake no obligation to update or revise publicly
our outlook or forward-looking statements. Further information
concerning CNH Industrial and its businesses, including factors
that potentially could materially affect CNH Industrial's financial
results, is included in CNH Industrial's reports and filings with
the U.S. Securities and Exchange Commission ("SEC"), the Autoriteit
Financiële Markten ("AFM") and Commissione Nazionale per le Società
e la Borsa ("CONSOB").
All future written and oral forward-looking statements by CNH
Industrial or persons acting on the behalf of CNH Industrial are
expressly qualified in their entirety by the cautionary statements
contained herein or referred to above.
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Contacts
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|
Media
Inquiries
|
Investor
Relations
|
|
|
|
United
Kingdom
|
United
Kingdom
|
|
|
|
Richard
Gadeselli
|
Federico
Donati
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Tel: +44 207 7660
346
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Tel: +44 207 7660
386
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Laura
Overall
|
United
States
|
|
Tel: +44 207 7660
338
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|
Noah Weiss
|
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Tel: +1 630 887
3745
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E-mail:
mediarelations@cnhind.com
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www.cnhindustrial.com
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|
CNH INDUSTRIAL
N.V.
|
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Condensed
Consolidated Statements of Operations
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For The Three
Months Ended March 31, 2017 and 2016
|
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(Unaudited)
|
|
|
(U.S.
GAAP)
|
|
|
($
million)
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
Revenues
|
|
|
|
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Net sales
|
5,384
|
|
5,076
|
|
Finance and interest
income
|
297
|
|
296
|
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TOTAL
REVENUES
|
5,681
|
|
5,372
|
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Costs and
Expenses
|
|
|
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|
Cost of goods
sold
|
4,497
|
|
4,238
|
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Selling, general and
administrative expenses
|
542
|
|
546
|
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Research and
development expenses
|
191
|
|
183
|
|
Restructuring
expenses
|
12
|
|
15
|
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Interest
expense
|
219
|
|
230
|
|
Other,
net(1)
|
141
|
|
630
|
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TOTAL COSTS AND
EXPENSES
|
5,602
|
|
5,842
|
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INCOME (LOSS) BEFORE
INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES
AND AFFILIATES
|
79
|
|
(470)
|
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Income
taxes
|
48
|
|
40
|
|
Equity in income of
unconsolidated subsidiaries and affiliates
|
18
|
|
(3)
|
|
NET INCOME
(LOSS)
|
49
|
|
(513)
|
|
Net income (loss)
attributable to noncontrolling interests
|
3
|
|
(1)
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO CNH INDUSTRIAL N.V.
|
46
|
|
(512)
|
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(in $)
|
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Earnings (loss)
per share attributable to common shareholders
|
|
|
|
|
Basic
|
0.03
|
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(0.38)
|
|
Diluted
|
0.03
|
|
(0.38)
|
|
|
|
Notes:
|
|
(1)
|
In the three
months ended March 2016, Other, net included the non-recurring
charge of $502 million related to the European Commission
investigation.
|
These Condensed Consolidated Statements of Operations should be
read in conjunction with the Company's Audited Consolidated
Financial Statements and Notes for the Year Ended December 31, 2016 included in the Annual Report
on Form 20-F. These Condensed Consolidated Statements of Operations
represent the consolidation of all CNH Industrial N.V.
subsidiaries.
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CNH INDUSTRIAL
N.V.
|
|
Condensed
Consolidated Balance Sheets
|
|
As of March 31,
2017 and December 31, 2016
|
|
(Unaudited)
|
|
|
(U.S.
GAAP)
|
|
|
($
million)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
|
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Cash and cash
equivalents
|
|
|
3,924
|
|
5,017
|
|
Restricted
cash
|
|
|
743
|
|
837
|
|
Trade receivables,
net
|
|
|
560
|
|
623
|
|
Financing
receivables, net
|
|
|
18,474
|
|
18,662
|
|
Inventories,
net
|
|
|
6,470
|
|
5,609
|
|
Property, plant and
equipment, net
|
|
|
6,484
|
|
6,397
|
|
Investments in
unconsolidated subsidiaries and affiliates
|
|
|
488
|
|
487
|
|
Equipment under
operating leases
|
|
|
1,897
|
|
1,907
|
|
Goodwill
|
|
|
2,452
|
|
2,449
|
|
Other intangible
assets, net
|
|
|
779
|
|
787
|
|
Deferred tax
assets
|
|
|
989
|
|
937
|
|
Derivative
assets
|
|
|
70
|
|
95
|
|
Other
assets
|
|
|
1,705
|
|
1,740
|
|
TOTAL
ASSETS
|
|
|
45,035
|
|
45,547
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Debt
|
|
|
24,500
|
|
25,276
|
|
Trade
payables
|
|
|
5,469
|
|
5,185
|
|
Deferred tax
liabilities
|
|
|
99
|
|
84
|
|
Pension,
postretirement and other postemployment benefits
|
|
|
2,293
|
|
2,276
|
|
Derivative
liabilities
|
|
|
207
|
|
249
|
|
Other
liabilities
|
|
|
7,898
|
|
8,005
|
|
Total
Liabilities
|
|
|
40,466
|
|
41,075
|
|
Redeemable
noncontrolling interest
|
|
|
22
|
|
21
|
|
Common shares, €0.01,
par value; outstanding 1,362,981,869 common shares and 396,263,417
special voting shares at 03/31/2017; and outstanding 1,361,630,903
common shares and 412,268,203 special voting shares at
12/31/2016
|
|
|
25
|
|
25
|
|
Treasury stock, at
cost: 0 shares at 03/31/2017 and 1,278,708 shares at
12/31/2016
|
|
|
-
|
|
(9)
|
|
Additional paid in
capital
|
|
|
4,406
|
|
4,408
|
|
Retained
earnings
|
|
|
1,833
|
|
1,787
|
|
Accumulated other
comprehensive loss
|
|
|
(1,723)
|
|
(1,767)
|
|
Noncontrolling
interests
|
|
|
6
|
|
7
|
|
Equity
|
|
|
4,547
|
|
4,451
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
|
45,035
|
|
45,547
|
These Condensed Consolidated Balance Sheets should be read in
conjunction with the Company's Audited Consolidated Financial
Statements and Notes for the Year Ended December 31, 2016 included in the Annual Report
on Form 20-F. These Condensed Consolidated Balance Sheets represent
the consolidation of all CNH Industrial N.V. subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
For The Three
Months Ended March 31, 2017 and 2016
|
|
(Unaudited)
|
|
|
(U.S.
GAAP)
|
|
|
($
million)
|
Three Months Ended
March 31,
|
|
2017
|
2016
|
|
Operating
activities:
|
|
|
|
Net income
(loss)
|
49
|
(513)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
Depreciation and
amortization expense, net of assets under operating
leases and assets sold under buy-back
commitments
|
177
|
177
|
|
Depreciation and
amortization expense of assets under operating leases
and assets sold under buy-back
commitments
|
139
|
133
|
|
Loss from disposal of
assets
|
4
|
1
|
|
Undistributed income
of unconsolidated subsidiaries
|
8
|
42
|
|
Other non-cash
items
|
42
|
55
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Provisions
|
(72)
|
357
|
|
Deferred income
taxes
|
(26)
|
98
|
|
Trade and financing
receivables related to sales, net
|
203
|
301
|
|
Inventories,
net
|
(760)
|
(704)
|
|
Trade
payables
|
198
|
126
|
|
Other assets and
liabilities
|
(136)
|
(82)
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
(174)
|
(9)
|
|
Investing
activities:
|
|
|
|
Additions to retail
receivables
|
(846)
|
(858)
|
|
Collections of retail
receivables
|
1,050
|
1,172
|
|
Proceeds from the sale
of assets, net of assets under operating leases and
assets sold under buy-back
commitments
|
2
|
2
|
|
Proceeds from the sale
of assets previously under operating leases and assets
sold under buy-back
commitments
|
188
|
154
|
|
Expenditures
for property, plant and equipment and intangible assets, net
of assets under operating leases
and assets sold under buy-back commitments
|
(74)
|
(81)
|
|
Expenditures for
assets under operating leases and assets sold under buy-back
commitments
|
(393)
|
(300)
|
|
Other
|
29
|
21
|
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
(44)
|
110
|
|
Financing
activities:
|
|
|
|
Proceeds from
long-term debt
|
2,851
|
1,835
|
|
Payment of long-term
debt
|
(3,869)
|
(2,990)
|
|
Net increase
(decrease) in other financial liabilities
|
71
|
(109)
|
|
Dividends
paid
|
(1)
|
(2)
|
|
Other
|
-
|
(49)
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
(948)
|
(1,315)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
73
|
141
|
|
DECREASE IN CASH AND
CASH EQUIVALENTS
|
(1,093)
|
(1,073)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF YEAR
|
5,017
|
5,384
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
3,924
|
4,311
|
These Condensed Consolidated Statements of Cash Flows should be
read in conjunction with the Company's Audited Consolidated
Financial Statements and Notes for the Year Ended December 31, 2016 included in the Annual Report
on Form 20-F. These Condensed Consolidated Statements of Cash Flows
represent the consolidation of all CNH Industrial N.V.
subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
|
Supplemental
Statements of Operations
|
|
For The Three
Months Ended March 31, 2017 and 2016
|
|
(Unaudited)
|
|
|
(U.S.
GAAP)
|
|
|
Industrial
Activities
|
Financial
Services
|
|
($
million)
|
Three Months Ended
March 31,
|
Three Months Ended
March 31,
|
|
2017
|
2016
|
2017
|
2016
|
|
Revenues
|
|
|
|
|
|
Net sales
|
5,384
|
5,076
|
-
|
-
|
|
Finance and interest
income
|
36
|
31
|
396
|
388
|
|
TOTAL
REVENUES
|
5,420
|
5,107
|
396
|
388
|
|
Costs and
Expenses
|
|
|
|
|
|
Cost of goods
sold
|
4,497
|
4,238
|
-
|
-
|
|
Selling, general and
administrative expenses
|
477
|
477
|
65
|
69
|
|
Research and
development expenses
|
191
|
183
|
-
|
-
|
|
Restructuring
expenses
|
11
|
15
|
1
|
-
|
|
Interest
expense
|
139
|
150
|
131
|
126
|
|
Interest compensation
to Financial Services
|
82
|
76
|
-
|
-
|
|
Other, net
|
63
|
565
|
80
|
66
|
|
TOTAL COSTS AND
EXPENSES
|
5,460
|
5,704
|
277
|
261
|
|
INCOME (LOSS) BEFORE
INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES
AND AFFILIATES
|
(40)
|
(597)
|
119
|
127
|
|
Income
taxes
|
10
|
(6)
|
38
|
46
|
|
Equity in income of
unconsolidated subsidiaries and affiliates
|
12
|
(9)
|
6
|
6
|
|
Results from
intersegment investments
|
87
|
87
|
-
|
-
|
|
NET INCOME
(LOSS)
|
49
|
(513)
|
87
|
87
|
These Supplemental Statements of Operations are presented for
informational purposes. The supplemental Industrial Activities data
in these statements (with Financial Services on the equity basis)
include CNH Industrial N.V.'s Agricultural Equipment, Construction
Equipment, Commercial Vehicles and Powertrain segments, as well as
Corporate functions. The supplemental Financial Services data in
these statements refer to CNH Industrial N.V.'s Financial Services
segment. Transactions between Industrial Activities and Financial
Services have been eliminated to arrive at the consolidated
financial statements.
|
CNH INDUSTRIAL
N.V.
|
|
Supplemental
Balance Sheets
|
|
As of March 31,
2017 and December 31, 2016
|
|
(Unaudited)
|
|
|
(U.S.
GAAP)
|
|
|
Industrial
Activities
|
Financial
Services
|
|
($
million)
|
March
31,
2017
|
December
31,
2016
|
March 31,
2017
|
December
31,
2016
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
3,557
|
4,649
|
367
|
368
|
|
Restricted
cash
|
-
|
-
|
743
|
837
|
|
Trade
receivables
|
530
|
596
|
55
|
58
|
|
Financing
receivables
|
1,794
|
1,592
|
19,276
|
19,546
|
|
Inventories,
net
|
6,266
|
5,396
|
204
|
213
|
|
Property, plant and
equipment, net
|
6,481
|
6,395
|
3
|
2
|
|
Investments in
unconsolidated subsidiaries and affiliates
|
2,895
|
2,886
|
162
|
153
|
|
Equipment under
operating leases
|
20
|
17
|
1,877
|
1,890
|
|
Goodwill
|
2,298
|
2,296
|
154
|
153
|
|
Other intangible
assets, net
|
766
|
772
|
13
|
15
|
|
Deferred tax
assets
|
1,101
|
1,060
|
198
|
188
|
|
Derivative
assets
|
68
|
98
|
8
|
8
|
|
Other
assets
|
1,646
|
1,505
|
346
|
382
|
|
TOTAL
ASSETS
|
27,422
|
27,262
|
23,406
|
23,813
|
|
LIABILITY AND
EQUITY
|
|
|
|
|
|
Debt
|
7,393
|
7,691
|
19,711
|
20,061
|
|
Trade
payables
|
5,374
|
5,042
|
120
|
180
|
|
Deferred tax
liabilities
|
103
|
84
|
306
|
310
|
|
Pension,
postretirement and other postemployment benefits
|
2,267
|
2,256
|
26
|
20
|
|
Derivative
liabilities
|
197
|
239
|
16
|
21
|
|
Other
liabilities
|
7,519
|
7,478
|
658
|
669
|
|
Total
Liabilities
|
22,853
|
22,790
|
20,837
|
21,261
|
|
Redeemable
noncontrolling interest
|
22
|
21
|
-
|
-
|
|
Equity
|
4,547
|
4,451
|
2,569
|
2,552
|
|
TOTAL LIABILITIES
AND EQUITY
|
27,422
|
27,262
|
23,406
|
23,813
|
These Supplemental Balance Sheets are presented for
informational purposes. The supplemental Industrial Activities data
in these statements (with Financial Services on the equity basis)
include CNH Industrial N.V.'s Agricultural Equipment, Construction
Equipment, Commercial Vehicles and Powertrain segments, as well as
Corporate functions. The supplemental Financial Services data in
these statements refer to CNH Industrial N.V.'s Financial Services
segment. Transactions between Industrial Activities and Financial
Services have been eliminated to arrive at the consolidated
financial statements.
|
CNH INDUSTRIAL
N.V.
|
|
Supplemental
Statements of Cash Flows
|
|
For The Three
Months Ended March 31, 2017 and 2016
|
|
(Unaudited)
|
|
|
(U.S.
GAAP)
|
|
|
Industrial
Activities
|
Financial
Services
|
|
($
million)
|
Three Months Ended
March 31,
|
Three Months Ended
March 31,
|
|
Operating
activities:
|
2017
|
2016
|
2017
|
2016
|
|
Net income
(loss)
|
49
|
(513)
|
87
|
87
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
Depreciation and
amortization expense, net of assets under operating
leases and assets sold under buy-back
commitments
|
176
|
176
|
1
|
1
|
|
Depreciation and
amortization expense of assets under operating leases
and assets sold under buy-back
commitments
|
74
|
72
|
65
|
61
|
|
Loss from disposal of
assets
|
4
|
1
|
-
|
-
|
|
Undistributed income
(loss) of unconsolidated subsidiaries
|
31
|
37
|
(6)
|
(7)
|
|
Other non-cash
items
|
18
|
26
|
24
|
29
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Provisions
|
(66)
|
359
|
(6)
|
(2)
|
|
Deferred income
taxes
|
(16)
|
39
|
(10)
|
59
|
|
Trade and financing
receivables related to sales, net
|
72
|
(33)
|
133
|
341
|
|
Inventories,
net
|
(770)
|
(684)
|
10
|
(20)
|
|
Trade
payables
|
254
|
174
|
(60)
|
(55)
|
|
Other assets and
liabilities
|
(158)
|
(134)
|
24
|
52
|
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
(332)
|
(480)
|
262
|
546
|
|
Investing
activities:
|
|
|
|
|
|
Additions to retail
receivables
|
-
|
-
|
(846)
|
(858)
|
|
Collections of retail
receivables
|
-
|
-
|
1,050
|
1,172
|
|
Proceeds from the sale
of assets, net of assets sold under operating leases and
assets sold under buy-back
commitments
|
2
|
2
|
-
|
-
|
|
Proceeds from the sale
of assets previously under operating leases and assets
sold under buy-back
commitments
|
71
|
76
|
117
|
78
|
|
Expenditures for
property, plant and equipment and intangible assets, net
of assets under operating
leases and assets sold under buy-back commitments
|
(74)
|
(80)
|
-
|
(1)
|
|
Expenditures for
assets under operating leases and assets sold under buy-back
commitments
|
(229)
|
(143)
|
(164)
|
(157)
|
|
Other
|
(494)
|
(39)
|
523
|
60
|
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
(724)
|
(184)
|
680
|
294
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from
long-term debt
|
120
|
146
|
2,731
|
1,689
|
|
Payment of long-term
debt
|
(238)
|
(416)
|
(3,631)
|
(2,574)
|
|
Net increase
(decrease) in other financial debt
|
14
|
(71)
|
57
|
(38)
|
|
Dividends
paid
|
(1)
|
(2)
|
(104)
|
(75)
|
|
Other
|
-
|
(49)
|
-
|
-
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
(105)
|
(392)
|
(947)
|
(998)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
69
|
111
|
4
|
30
|
|
DECREASE IN CASH AND
CASH EQUIVALENTS
|
(1,092)
|
(945)
|
(1)
|
(128)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF YEAR
|
4,649
|
4,551
|
368
|
833
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
3,557
|
3,606
|
367
|
705
|
These Supplemental Statements of Cash Flows are presented for
informational purposes. The supplemental Industrial Activities data
in these statements (with Financial Services on the equity basis)
include CNH Industrial N.V.'s Agricultural Equipment, Construction
Equipment, Commercial Vehicles and Powertrain segments, as well as
Corporate functions. The supplemental Financial Services data in
these statements refer to CNH Industrial N.V.'s Financial Services
segment. Transactions between Industrial Activities and Financial
Services have been eliminated to arrive at the consolidated
financial statements.
|
CNH INDUSTRIAL
N.V
|
|
Other Supplemental
Financial Information
|
|
(Unaudited)
|
|
|
CNH
INDUSTRIAL
Reconciliation of Operating Profit (loss) to Net
Income (loss) under U.S. GAAP ($
million)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2017
|
2016
|
|
|
Total Operating
Profit
|
|
|
257
|
232
|
|
|
Restructuring
expenses
|
|
|
12
|
15
|
|
|
Interest expenses of
Industrial Activities, net of interest income and
eliminations
|
|
|
103
|
119
|
|
|
Other,
net(1)
|
|
|
(63)
|
(568)
|
|
|
Income (loss) before
income taxes and equity in income of unconsolidated subsidiaries
and affiliates
|
|
|
79
|
(470)
|
|
|
Income taxes
|
|
|
48
|
40
|
|
|
Equity in income of
unconsolidated subsidiaries and affiliates
|
|
|
18
|
(3)
|
|
|
Net income
(loss)
|
|
|
49
|
(513)
|
|
|
(1) In the three months ended March 2016, Other,
net included the non-recurring charge of $502 million related to
the European Commission investigation
|
|
|
CNH
INDUSTRIAL
Reconciliation of Total Debt to Net debt under
U.S. GAAP ($ million)
|
|
|
Consolidated
|
|
Industrial
Activities
|
|
Financial
Activities
|
|
|
|
March
31,
2017
|
December 31,
2016
|
|
March
31,
2017
|
December 31,
2016
|
|
March
31,
2017
|
December 31,
2016
|
|
|
Third party
debt
|
24,500
|
25,276
|
|
6,505
|
6,694
|
|
17,995
|
18,582
|
|
|
Intersegment notes
payable
|
-
|
-
|
|
888
|
997
|
|
1,716
|
1,479
|
|
|
Total
Debt(1)
|
24,500
|
25,276
|
|
7,393
|
7,691
|
|
19,711
|
20,061
|
|
|
Less:
Cash and cash equivalents
|
3,924
|
5,017
|
|
3,557
|
4,649
|
|
367
|
368
|
|
|
Restricted
cash
|
743
|
837
|
|
-
|
-
|
|
743
|
837
|
|
|
Intersegment notes
receivable
|
-
|
-
|
|
1,716
|
1,479
|
|
888
|
997
|
|
|
Derivatives hedging
debt
|
(3)
|
2
|
|
(3)
|
2
|
|
-
|
-
|
|
|
Net debt
(cash)(2)
|
19,836
|
19,420
|
|
2,123
|
1,561
|
|
17,713
|
17,859
|
|
|
(1) Total Debt of Industrial Activities includes
Intersegment notes payable to Financial Services of $888 million
and $997 million as of March 31, 2017 and December 31, 2016,
respectively. Total Debt of Financial Services includes
Intersegment notes payable to Industrial Activities of $1,716
million and $1,479 million as of March 31, 2017 and December 31,
2016, respectively.
(2) The net intersegment
receivable/payable balance owed by Financial Services to Industrial
Activities was $828 million and $482 million as of March 31, 2017
and December 31, 2016, respectively.
|
|
CNH
INDUSTRIAL
Reconciliation of
Cash and cash equivalents to Available liquidity under U.S.
GAAP
($
million)
|
|
|
|
March 31,
2017
|
December 31,
2016
|
|
|
Cash and cash
equivalents
|
|
3,924
|
5,017
|
|
|
Restricted
cash
|
|
743
|
837
|
|
|
Undrawn committed
facilities
|
|
2,887
|
2,890
|
|
|
Available
liquidity
|
|
7,554
|
8,744
|
|
|
|
|
|
|
|
|
|
|
|
CNH INDUSTRIAL
N.V.
|
|
Other Supplemental
Financial Information
|
|
(Unaudited)
|
|
|
CNH
INDUSTRIAL
Change in Net
Industrial Debt under U.S. GAAP
($ million)
|
|
|
|
Three Months ended
March 31,
|
|
|
|
|
2017
|
|
2016
|
|
|
Net industrial
(debt)/cash at beginning of period
|
|
(1,561)
|
|
(1,578)
|
|
|
Net income
(loss)
|
|
49
|
|
(513)
|
|
|
Amortization and
depreciation(1)
|
|
176
|
|
177
|
|
|
Changes in provisions
and similar(2)
|
|
(93)
|
|
464
|
|
|
Change in working
capital
|
|
(626)
|
|
(673)
|
|
|
Investments in
property, plant and equipment, and intangible
assets(1)
|
|
(74)
|
|
(80)
|
|
|
Other
changes
|
|
35
|
|
3
|
|
|
Net industrial
cash flow
|
|
(533)
|
|
(622)
|
|
|
Capital increases and
dividends
|
|
(1)
|
|
(7)
|
|
|
Currency translation
differences and other
|
|
(28)
|
|
(263)
|
|
|
Change in Net
industrial debt
|
|
(562)
|
|
(892)
|
|
|
Net industrial
(debt)/cash at end of period
|
|
(2,123)
|
|
(2,470)
|
|
|
(1) Excluding assets sold under buy-back
commitments and assets under operating
leases.
(2) This item also
includes changes in items related to assets sold under buy-back
commitments, and assets under operating leases. In the three months
ended March 31, 2016, this item included the accrued provision
of $502 million related to the European Commission
investigation.
|
|
CNH INDUSTRIAL
N.V.
|
|
Other Supplemental
Financial Information
|
|
(Unaudited)
|
|
|
CNH
INDUSTRIAL
Reconciliation of
Adjusted net income and Adjusted income taxes to the most
comparable GAAP financial measure and determination of Adjusted
diluted EPS and Adjusted ETR under U.S.GAAP
($ million,
except per share data)
|
|
|
|
Three Months ended
March 31,
|
|
|
|
|
2017
|
|
2016
|
|
|
Net income
(loss)
|
|
49
|
|
(513)
|
|
|
Adjustments impacting
Income (loss) before income taxes and equity in income of
unconsolidated subsidiaries and affiliates (a)
|
|
12
|
|
517
|
|
|
Adjustments impacting
Income taxes (b)
|
|
(3)
|
|
(3)
|
|
|
Adjusted net
income
|
|
58
|
|
1
|
|
|
Adjusted net income
attributable to CNH Industrial N.V.
|
|
55
|
|
2
|
|
|
Weighted average
shares outstanding – diluted (million)
|
|
1,366
|
|
1,364
|
|
|
Adjusted diluted
EPS ($)
|
|
0.04
|
|
0.00
|
|
|
|
|
|
Income (loss)
before income taxes and equity in income of unconsolidated
subsidiaries and affiliates
|
|
79
|
|
(470)
|
|
|
Adjustments impacting
Income (loss) before income taxes and equity in income of
unconsolidated subsidiaries and affiliates (a)
|
|
12
|
|
517
|
|
|
Adjusted income
(loss) before income taxes and equity in income of unconsolidated
subsidiaries and affiliates (A)
|
|
91
|
|
47
|
|
|
|
|
|
Income
taxes
|
|
48
|
|
40
|
|
|
Less: Adjustments
impacting Income taxes (b)
|
|
3
|
|
3
|
|
|
Adjusted income
taxes (B)
|
|
51
|
|
43
|
|
|
|
|
|
Adjusted Effective
Tax Rate (Adjusted ETR) (C=B/A)
|
|
56%
|
|
91%
|
|
|
|
|
|
a)
Adjustments impacting Income (loss) before income taxes and
equity in income of unconsolidated subsidiaries and
affiliates
|
|
|
Restructuring
expenses
|
|
12
|
|
15
|
|
|
European Commission
investigation charge
|
|
-
|
|
502
|
|
|
Total
|
|
12
|
|
517
|
|
|
|
|
|
b)
Adjustments impacting Income taxes
|
|
|
Tax effect of
adjustments impacting Income (loss) before income taxes and equity
in income of unconsolidated subsidiaries and affiliates
|
|
(3)
|
|
(3)
|
|
|
Total
|
|
(3)
|
|
(3)
|
|
|
|
|
|
CNH INDUSTRIAL
N.V.
|
|
Other Supplemental
Financial Information
|
|
(Unaudited)
|
|
|
CNH
INDUSTRIAL
Revenues and
Trading profit/(loss)(1) by Segment under EU-IFRS
($ million)
|
|
Net
revenues
|
|
Trading
profit/(loss)
|
|
|
Three Months ended
March 31,
|
|
Three Months ended
March 31,
|
|
|
2017
|
2016
|
%
change
|
|
2017
|
2016
|
Change
|
|
|
2,346
|
2,124
|
10.5
|
Agricultural
Equipment
|
71
|
19
|
52
|
|
|
523
|
536
|
-2.4
|
Construction
Equipment
|
(42)
|
(6)
|
-36
|
|
|
2,142
|
2,097
|
2.1
|
Commercial
Vehicles
|
(3)
|
15
|
-18
|
|
|
1,002
|
884
|
13.3
|
Powertrain
|
67
|
46
|
21
|
|
|
(578)
|
(511)
|
-
|
Eliminations and
other
|
(21)
|
(17)
|
-4
|
|
|
5,435
|
5,130
|
5.9
|
Total of
Industrial Activities
|
72
|
57
|
15
|
|
|
514
|
455
|
13.0
|
Financial
Services
|
120
|
127
|
-7
|
|
|
(120)
|
(110)
|
-
|
Eliminations and
other
|
-
|
-
|
-
|
|
|
5,829
|
5,475
|
6.5
|
Total
|
192
|
184
|
8
|
|
|
(1) This item is a
non-GAAP financial measure. Refer to the "Non-GAAP Financial
Information" section of this press release for information
regarding non-GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
CNH
INDUSTRIAL
Key Balance Sheet
data under EU-IFRS ($ million)
|
|
|
|
March 31,
2017
|
December 31,
2016
|
|
|
Total
Assets
|
|
47,270
|
47,834
|
|
|
Total
Equity
|
|
6,728
|
6,634
|
|
|
Equity attributable
to CNH Industrial N.V.
|
|
6,717
|
6,623
|
|
|
Net debt
|
|
(20,059)
|
(19,734)
|
|
|
Of which Net
industrial debt(1)
|
|
(2,307)
|
(1,822)
|
|
|
(1) This item is a
non-GAAP financial measure. Refer to the "Non-GAAP Financial
Information" section of this press release for information
regarding non-GAAP financial measures.
|
|
|
CNH
INDUSTRIAL
Net income
reconciliation U.S. GAAP to EU-IFRS ($
million)
|
|
|
|
Three Months ended
March 31,
|
|
|
|
|
2017
|
2016
|
|
|
Net income (loss)
in accordance with U.S. GAAP
|
|
49
|
(513)
|
|
|
Adjustments to conform
with EU-IFRS:
|
|
|
|
|
|
Development
costs
|
|
(42)
|
(40)
|
|
|
Other
adjustments
|
|
10
|
20
|
|
|
Tax impact on
adjustments
|
|
10
|
10
|
|
|
Deferred tax assets
and tax contingencies recognition
|
|
(4)
|
(7)
|
|
|
Total
adjustments
|
|
(26)
|
(17)
|
|
|
Profit (loss) in
accordance with EU-IFRS
|
|
23
|
(530)
|
|
|
|
|
|
CNH INDUSTRIAL
N.V.
|
|
Other Supplemental
Financial Information
|
|
(Unaudited)
|
|
|
CNH
INDUSTRIAL
Total Equity
reconciliation U.S. GAAP to EU-IFRS
($ million)
|
|
|
March 31,
2017
|
December 31,
2016
|
|
|
Total Equity under
U.S. GAAP
|
4,547
|
4,451
|
|
|
Adjustments to conform
with EU-IFRS:
|
|
|
|
|
Development
costs
|
2,365
|
2,374
|
|
|
Other
adjustments
|
(129)
|
(121)
|
|
|
Tax impact on
adjustments
|
(648)
|
(655)
|
|
|
Deferred tax assets
and tax contingencies recognition
|
593
|
585
|
|
|
Total
adjustments
|
2,181
|
2,183
|
|
|
Total Equity under
EU-IFRS
|
6,728
|
6,634
|
|
|
|
|
|
|
|
|
|
Translation of financial statements denominated in a currency
other than the U.S. dollar
The principal exchange rates used to translate into U.S. dollars
the financial statements prepared in currencies other than the U.S.
dollar were as follows:
|
Three Months
Ended
March 31,
2017
|
|
At December 31,
2016
|
|
Three Months
Ended
March 31,
2016
|
|
Average
|
At March
31
|
|
|
|
Average
|
At March
31
|
|
Euro
|
0.939
|
0.935
|
|
0.949
|
|
0.907
|
0.878
|
|
Pound
sterling
|
0.808
|
0.800
|
|
0.812
|
|
0.699
|
0.695
|
|
Swiss
franc
|
1.004
|
1.000
|
|
1.019
|
|
0.994
|
0.960
|
|
Polish
zloty
|
4.058
|
3.953
|
|
4.184
|
|
3.959
|
3.740
|
|
Brazilian
real
|
3.143
|
3.162
|
|
3.254
|
|
3.902
|
3.617
|
|
Canadian
dollar
|
1.324
|
1.334
|
|
1.346
|
|
1.374
|
1.295
|
|
Argentine
peso
|
15.670
|
15.410
|
|
15.850
|
|
14.440
|
14.680
|
|
Turkish
lira
|
3.698
|
3.638
|
|
3.517
|
|
2.945
|
2.821
|
|
CNH INDUSTRIAL
N.V.
|
|
Condensed
Consolidated Income Statement
|
|
For The Three
Months Ended March 31, 2017 and 2016
|
|
(Unaudited)
|
|
|
(EU-IFRS)
|
|
|
Three Months Ended
March 31,
|
|
($
million)
|
2017
|
2016
|
|
Net
revenues
|
5,829
|
5,475
|
|
Cost of
sales
|
4,858
|
4,536
|
|
Selling, general and
administrative costs
|
516
|
514
|
|
Research and
development costs
|
240
|
225
|
|
Other
income/(expenses)
|
(23)
|
(16)
|
|
TRADING
PROFIT/(LOSS)
|
192
|
184
|
|
Gains/(losses) on the
disposal of investments
|
-
|
-
|
|
Restructuring
costs
|
13
|
15
|
|
Other unusual
income/(expenses)(1)
|
8
|
(504)
|
|
OPERATING
PROFIT/(LOSS)
|
187
|
(335)
|
|
Financial
income/(expenses)
|
(141)
|
(156)
|
|
Result from
investments:
|
19
|
(2)
|
|
Share of the
profit/(loss) of investees accounted for using the equity
method
|
19
|
(2)
|
|
Other
income/(expenses) from investments
|
-
|
-
|
|
PROFIT/(LOSS) BEFORE
TAXES
|
65
|
(493)
|
|
Income
taxes
|
42
|
37
|
|
PROFIT/(LOSS) FROM
CONTINUING OPERATIONS
|
23
|
(530)
|
|
PROFIT/(LOSS) FOR THE
PERIOD
|
23
|
(530)
|
|
|
|
|
PROFIT/(LOSS) FOR THE
PERIOD ATTRIBUTABLE TO:
|
|
|
|
Owners of the
parent
|
20
|
(529)
|
|
Non-controlling
interests
|
3
|
(1)
|
|
|
|
|
|
|
|
|
|
|
(in $)
|
|
|
|
BASIC EARNINGS/(LOSS)
PER COMMON SHARE
|
0.01
|
(0.39)
|
|
DILUTED
EARNINGS/(LOSS) PER COMMON SHARE
|
0.01
|
(0.39)
|
|
|
Notes:
|
|
(1)
|
In the three
months ended March 31, 2016, Other unusual income/(expenses)
included the non-recurring charge of $502 million related to the
European Commission investigation.
|
This Condensed Consolidated Income Statement should be read in
conjunction with the Company's Audited Consolidated Financial
Statements and Notes for the Year Ended December 31, 2016 included in the EU Annual
Report. This Condensed Consolidated Income Statement represents the
consolidation of all CNH Industrial N.V. subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
|
Condensed
Consolidated Statement of Financial Position
|
|
As of March 31,
2017 and December 31, 2016
|
|
(Unaudited)
|
|
|
(EU-IFRS)
|
|
|
($
million)
|
|
March 31,
2017
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
Intangible
assets
|
|
5,493
|
5,504
|
|
Property, plant and
equipment
|
|
6,330
|
6,278
|
|
Investments and other
financial assets:
|
|
557
|
554
|
|
Investments accounted
for using the equity method
|
|
507
|
505
|
|
Other investments and
financial assets
|
|
50
|
49
|
|
Leased
assets
|
|
1,897
|
1,907
|
|
Defined benefit plan
assets
|
|
5
|
5
|
|
Deferred tax
assets
|
|
950
|
959
|
|
Total Non-current
assets
|
|
15,232
|
15,207
|
|
Inventories
|
|
6,628
|
5,732
|
|
Trade
receivables
|
|
560
|
623
|
|
Receivables from
financing activities
|
|
18,474
|
18,662
|
|
Current tax
receivables
|
|
266
|
430
|
|
Other current
assets
|
|
1,353
|
1,209
|
|
Current financial
assets:
|
|
70
|
95
|
|
Current
securities
|
|
-
|
-
|
|
Other financial
assets
|
|
70
|
95
|
|
Cash and cash
equivalents
|
|
4,667
|
5,854
|
|
Total Current
assets
|
|
32,018
|
32,605
|
|
Assets held for
sale
|
|
20
|
22
|
|
TOTAL
ASSETS
|
|
47,270
|
47,834
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
Issued capital and
reserves attributable to owners of the parent
|
|
6,717
|
6,623
|
|
Non-controlling
interests
|
|
11
|
11
|
|
Total
Equity
|
|
6,728
|
6,634
|
|
Provisions:
|
|
5,614
|
5,687
|
|
Employee
benefits
|
|
2,402
|
2,532
|
|
Other
provisions
|
|
3,212
|
3,155
|
|
Debt:
|
|
24,589
|
25,434
|
|
Asset-backed
financing
|
|
11,279
|
11,784
|
|
Other debt
|
|
13,310
|
13,650
|
|
Other financial
liabilities
|
|
207
|
249
|
|
Trade
payables
|
|
5,469
|
5,185
|
|
Current tax
payables
|
|
59
|
229
|
|
Deferred tax
liabilities
|
|
142
|
188
|
|
Other current
liabilities
|
|
4,462
|
4,228
|
|
Liabilities held for
sale
|
|
-
|
-
|
|
Total
Liabilities
|
|
40,542
|
41,200
|
|
TOTAL EQUITY AND
LIABILITIES
|
|
47,270
|
47,834
|
This Condensed Consolidated Statement of Financial Position
should be read in conjunction with the Company's Audited
Consolidated Financial Statements and Notes for the Year Ended
December 31, 2016 included in the EU
Annual Report. This Condensed Consolidated Statement of Financial
Position represents the consolidation of all CNH Industrial N.V.
subsidiaries.
|
CNH INDUSTRIAL
N.V.
|
|
Condensed
Consolidated Statement of Cash Flows
|
|
For The Three
Months Ended March 31, 2017 and 2016
|
|
(Unaudited)
|
|
|
(EU-IFRS)
|
|
|
Three Months Ended
March 31,
|
|
($
million)
|
2017
|
2016
|
|
A) CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
5,854
|
6,311
|
|
B) CASH FLOWS
FROM/(USED IN) OPERATING ACTIVITIES:
|
|
|
|
Profit/(loss) for the
period
|
23
|
(530)
|
|
Amortization and
depreciation (net of vehicles sold under buy-back commitments and
operating leases)
|
291
|
295
|
|
(Gains)/losses on
disposal of non-current assets (net of vehicles sold under buy-back
commitments)
|
-
|
-
|
|
Other non-cash
items
|
5
|
43
|
|
Dividends
received
|
25
|
39
|
|
Change in
provisions
|
(167)
|
311
|
|
Change in deferred
income taxes
|
(19)
|
100
|
|
Change in items due
to buy-back commitments(1)
|
(17)
|
40
|
|
Change in operating
lease items(2)
|
23
|
(36)
|
|
Change in working
capital
|
(486)
|
(761)
|
|
TOTAL
|
(322)
|
(499)
|
|
C) CASH FLOWS
FROM/(USED IN) INVESTMENT ACTIVITIES:
|
|
|
|
Investments
in:
|
|
|
|
Property, plant and
equipment and intangible assets (net of vehicles sold under
buy-back commitments and operating leases)
|
(148)
|
(161)
|
|
Consolidated
subsidiaries and other equity investments
|
(5)
|
5
|
|
Proceeds from the
sale of non-current assets (net of vehicles sold under buy-back
commitments)
|
2
|
2
|
|
Net change in
receivables from financing activities
|
374
|
666
|
|
Change in current
securities
|
-
|
2
|
|
Other
changes
|
(112)
|
(109)
|
|
TOTAL
|
111
|
405
|
|
D) CASH FLOWS
FROM/(USED IN) FINANCING ACTIVITIES:
|
|
|
|
Bonds
issued
|
80
|
500
|
|
Repayment of
bonds
|
(500)
|
(263)
|
|
Issuance of other
medium-term borrowings (net of repayment)
|
8
|
(98)
|
|
Net change in other
financial payables and other financial
assets/liabilities
|
(642)
|
(1,322)
|
|
Capital
increase
|
-
|
-
|
|
Dividends
paid
|
(1)
|
(2)
|
|
Purchase of treasury
shares
|
-
|
(5)
|
|
Purchase of ownership
interests in subsidiaries
|
-
|
(44)
|
|
TOTAL
|
(1,055)
|
(1,234)
|
|
Translation exchange
differences
|
79
|
159
|
|
E) TOTAL CHANGE IN
CASH AND CASH EQUIVALENTS
|
(1,187)
|
(1,169)
|
|
F) CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
4,667
|
5,142
|
|
|
|
(1)
|
Cash flows generated
by the sale of vehicles under buy-back commitments, net of the
amounts included in Profit/(loss) for the period, are included
under operating activities in a single line item which includes
changes in working capital, capital expenditures, depreciation and
impairment losses. This item also includes gains and losses arising
from the sales of vehicles transferred under buy-back commitments
that occur before the end of the agreement term without
repossession of the vehicle.
|
|
(2)
|
Cash flows generated
during the period by operating lease arrangements are included in
operating activities in a single line item which includes capital
expenditures, depreciation, impairment losses and changes in
inventories.
|
These Condensed Consolidated Statement of Cash Flows should be
read in conjunction with the Company's Audited Consolidated
Financial Statements and Notes for the Year Ended December 31, 2016 included in the EU Annual
Report. This Condensed Consolidated Statement of Cash Flows
represents the consolidation of all CNH Industrial N.V.
subsidiaries.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cnh-industrial-2017-first-quarter-revenues-up-58-to-57-billion-net-income-increased-to-49-million-net-industrial-debt-of-21-billion-300447068.html
SOURCE CNH Industrial N.V.