Q4
Consolidated revenues of
$6,943 million
(up 26.7% compared to
Q4 2021 for
continuing
operations)
Net income of
$592
million, Adjusted Net Income of
$486 million,
with diluted EPS of
$0.43
and adjusted diluted EPS of
$0.36
Adjusted EBIT of Industrial Activities
of $680 million
(up $302 million compared to
Q4 2021)
Net cash provided
by operating activities of
$1,443 million
and Industrial
Free
Cash
Flow of $2,049
million
Net sales for
Industrial
Activities of
$6,352 million (up $1,358
million compared to Q4 2021)
The board intends
to recommend an annual cash
dividend of €0.36
(approximately
$0.38)
per share
Financial results presented under U.S. GAAP
The CNH Industrial team delivered a
strong fourth quarter contributing to record full
year revenue and income. Sharp execution and
improving supply chain management generated
$1.6B of full year industrial free cash
flow. We are pleased to have resolved
the UAW strike and are eager to
continue delivering increased value to our dealers and
customers. We also announced today
our intention to move to a single listing in New
York, with plans to
exit the Milan exchange as expeditiously
as possible. Our precision and autonomy offerings were
on full display at our Tech Day in December, and further
innovations and integration with Raven will
drive the success of our farm and construction
customers. We see
continuing strength in most end markets,
and with better performing supply chains and
moderating inflation we are confident we will build on our robust
foundation.
Scott W. Wine, Chief Executive
Officer
2022 Fourth
Quarter Results
(all amounts $ million, comparison vs Q4 2021
continuing operations - unless otherwise stated)
|
US-GAAP |
|
|
|
Q4 2022 |
|
PY(1) |
|
Change |
Change at
c.c.(3) |
| Consolidated revenue |
|
6,943 |
|
5,480 |
|
+1,463 |
+31% |
|
of which Net sales of Industrial Activities |
|
6,352 |
|
4,994 |
|
+1,358 |
+31% |
| Net income |
|
592 |
|
464 |
|
+128 |
|
| Diluted EPS $ |
|
0.43 |
|
0.34 |
|
+0.09 |
|
| Cash flow from operating
activities |
|
1,443 |
|
1,724 |
|
(281) |
|
| Cash and cash
equivalents(6) |
|
4,376 |
|
3,154 |
|
+1,222 |
|
| Gross profit margin of
Industrial Activities |
|
21.6% |
|
19.0% |
|
+260 bps |
|
|
NON-GAAP(2) |
|
|
|
Q4 2022 |
|
PY(1) |
|
Change |
|
| Adjusted EBIT of Industrial
Activities |
|
680 |
|
378 |
|
+302 |
|
| Adjusted EBIT Margin of
Industrial Activities |
|
10.7% |
|
7.6% |
|
+310 bps |
|
| Adjusted net income |
|
486 |
|
425 |
|
+61 |
|
| Adjusted diluted EPS $ |
|
0.36 |
|
0.31 |
|
+0.05 |
|
| Free Cash flow of Industrial
Activities |
|
2,049 |
|
1,225 |
|
+824 |
|
| Available
liquidity(6) |
|
10,632 |
|
8,645 |
|
+1,987 |
|
Net sales of Industrial Activities of $6,352
million, up 27.2% mainly due to favorable price realization and
higher sales volumes, despite more than 4% adverse currency
conversion impacts.
Net income of $592 million, with diluted
earnings per share of $0.43 (net income of $464 million in Q4 2021,
with diluted earnings per share of $0.34). Adjusted net income of
$486 million, with adjusted diluted earnings per share of $0.36
(adjusted net income of $425 million in Q4 2021, with adjusted
diluted earnings per share of $0.31).
Adjusted EBIT of Industrial Activities of $680
million ($378 million in Q4 2021), with both segments up year over
year. Agriculture adjusted EBIT margin at 13.1% and Construction at
3.5%.
Gross profit margin of Industrial Activities of
21.6%, (19.0% in Q4 2021) with improvement in Agriculture and
Construction despite continued cost pressures.
Reported income tax expense of $168 million,
which includes a $55 million tax benefit from recognizing certain
deferred tax assets, and an effective tax rate (ETR) of 23.2%; both
the ETR and the adjusted ETR(1) of 33.6%
increased due to the jurisdictional mix of pre-tax profits and
discrete items booked in the quarter.
Cash flow from operating activities in the
quarter was $1,443 million ($1,724 million in Q4 2021). Free cash
flow of Industrial Activities was $2,049 million. Total Debt of
$23.0 billion at December 31, 2022 ($20.9 billion at December 31,
2021).
Industrial Activities Net Cash
(Debt)(1) position at $362 million, an
improvement of $1.5 billion from December 31, 2021, and Available
liquidity at $10,632 million as of December 31, 2022. 2.9 million
common shares were purchased during the fourth quarter under the
first $50 million tranche of the $300 million common share buyback
program approved on July 29, 2022.
The Board of CNH Industrial N.V. intends to
recommend to the Company’s shareholders an annual cash dividend of
€0.36 per common share, totaling approximately €483 million (~$511
million). The proposed dividend remains subject to formal Board
approval and the approval of shareholders at the Annual General
Meeting on April 14, 2023.
|
Agriculture |
|
|
|
Q4
2022 |
|
Q4
2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Net sales ($ million) |
|
5,369 |
|
4,150 |
|
+1,219 |
|
+34% |
| Adjusted EBIT ($ million) |
|
701 |
|
414 |
|
+287 |
|
|
| Adjusted EBIT margin |
|
13.1% |
|
10.0% |
|
+310 bps |
|
|
In North America, industry volume was flat year
over year for the fourth quarter 2022 for tractors over 140 HP and
was down 14% for tractors under 140 HP; combines were up 44%. In
Europe, Middle East and Africa (EMEA), tractor and combine demand
was down 7% and up 8%, respectively, of which Europe tractor and
combine demand was down 1% and up 36%, respectively. South America
tractor demand was down 8% and combine demand was up 6%. Asia
Pacific tractor demand was up 18% and combine demand was up
296%.
Agriculture net sales were up 29%, due to
favorable price realization, higher sales volumes and better
product mix, mostly driven by the North America, South America and
Europe regions partially offset by negative impact of foreign
exchange rates.
Gross profit margin was at 23.1%, with Gross
Profit $394 million higher than in Q4 2021, mainly due to favorable
price realization in the North America, South America and Europe
regions more than offsetting higher manufacturing and purchasing
costs across all regions.
Adjusted EBIT was $701 million ($414 million in
Q4 2021), with Adjusted EBIT margin at 13.1%. The $287 million (or
3.1 p.p.) increase from Q4 2021 was driven by favorable price
realization and better product mix, partially offset by higher
manufacturing and purchasing costs, increased SG&A and R&D
spend.
Order book in Agriculture was down 23% year over
year for tractors worldwide with all regions down except the Asia
Pacific region. Order book for combines was down 20%, with declines
in all regions except the Asia Pacific region. At above 2.2 times
the pre-pandemic levels, order books remain strong in all
regions.
|
Construction |
|
|
|
Q4 2022 |
|
Q4
2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Net sales ($ million) |
|
983 |
|
844 |
|
+139 |
|
+19% |
| Adjusted EBIT ($ million) |
|
34 |
|
20 |
|
+14 |
|
|
| Adjusted EBIT margin |
|
3.5% |
|
2.4% |
|
+110 bps |
|
|
Global industry volume for construction
equipment decreased in both Heavy and Light sub-segments year over
year in the fourth quarter, both down 2%. Aggregated demand
increased 1% in EMEA, decreased 6% in North America, decreased 9%
in South America and decreased 1% for Asia Pacific, particularly in
China.
Construction net sales were up 17%, driven by
positive sales volume, favorable price realization, and
contribution from the Sampierana business, partially offset by
negative impact of foreign exchange rates.
Gross profit margin was 13.3%, up 1.0 p.p.
compared to Q4 2021, mainly due to favorable price realization and
higher volumes in North America, South America, and Europe,
contributions from the Sampierana business, partially offset by
higher raw material costs.
Adjusted EBIT increased $14 million due to
favorable volume and mix and positive price realization, partially
offset by higher raw material costs and increased SG&A spend.
Adjusted EBIT margin at 3.5%.
Construction order book was down 19% year over
year in the Heavy sub-segment and down 10% in the Light sub-segment
from elevated levels at the end of 2021. Dealer inventories remain
low compared to past performance.
|
Financial Services |
|
|
|
Q4 2022 |
|
Q4
2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Revenue ($ million) |
|
577 |
|
478 |
|
+99 |
|
+22% |
| Net income ($ million) |
|
75 |
|
90 |
|
(15) |
|
|
| Equity at quarter-end ($
million) |
|
2,285 |
|
2,129 |
|
+156 |
|
|
| Retail loan originations ($
million) |
|
9,955 |
|
9,733 |
|
+2.3% |
|
|
Revenues were up 21% due to favorable volumes in
all regions, higher base rates across all regions, mainly in South
America, partially offset by lower used equipment sales.
Net income decreased $15 million to $75 million,
primarily due to margin compression in North America, increased
labor costs, and higher specific reserves, primarily in China
related to Construction customers and dealers, partially offset by
favorable volumes in all regions, and higher recoveries on used
equipment sales.
The managed portfolio (including unconsolidated
joint ventures) was $23.8 billion as of December 31, 2022 (of which
retail was 67% and wholesale was 33%), up $3.6 billion compared to
December 31, 2021 (up $4.0 billion on a constant currency
basis).
The receivable balance greater than 30 days past due as a
percentage of receivables was 1.3% (1.2% as of December 31,
2021).
During the quarter, CNH Industrial Capital North
America closed on its previously announced purchase of Citibank
N.A. and Citi Cards Canada Inc.’s portfolio of revolving charge
account (“RCA”) receivables underlying a private-label RCA product
offered through CNH Industrial North America dealers.
2023
Outlook
The Company is providing the following 2023 outlook for its
Industrial Activities:
- Net
sales(5)
up between 6% and 10% year on year including currency translation
effects
-
SG&A up, no more than 5% vs 2022
- Free Cash
Flow of Industrial
Activities(8) between $1.3bn
and $1.5bn
- R&D
expenses and capital expenditures at
around $1.6bn
Results For The Full
Year 2022
Consolidated revenues of
$23,551 million
(up 20.8% year on
year, up
24% at constant
currency), net income of
$2,039
million (adjusted net income of
$2,004 million, with
adjusted diluted EPS of
$1.46), adjusted
EBIT of Industrial Activities of
$2,433
million, and Industrial
Free
Cash
Flow generation
of $1,596
million.
Results for the Full
Year 2022
(all amounts $ million, comparison vs FY 2021
continuing operations - unless otherwise stated)
|
US-GAAP |
|
|
|
FY 2022 |
|
FY
2021(1) |
|
Change |
Change at
c.c.(3) |
| Consolidated
revenue |
|
23,551 |
|
19,496 |
|
+4,055 |
+24% |
|
of which Net sales of Industrial Activities |
|
21,541 |
|
17,802 |
|
+3,739 |
+25% |
| Net income |
|
2,039 |
|
1,801 |
|
+238 |
|
| Diluted EPS $ |
|
1.49 |
|
1.32 |
|
+0.17 |
|
| Cash flow from
operating activities |
|
557 |
|
3,198 |
|
(2,641) |
|
| Cash and cash
equivalents(7) |
|
4,376 |
|
5,044 |
|
(668) |
|
| Gross profit
margin of Industrial Activities |
|
22.0% |
|
20.7% |
|
+130 bps |
|
|
NON-GAAP(2) |
|
|
|
FY 2022 |
|
FY
2021(1) |
|
Change |
|
| Adjusted EBIT of Industrial
Activities |
|
2,433 |
|
1,763 |
|
+670 |
|
|
Adjusted EBIT Margin of Industrial Activities |
|
11.3% |
|
9.9% |
|
+140 bps |
|
| Adjusted net income |
|
2,004 |
|
1,747 |
|
+257 |
|
| Adjusted diluted EPS $ |
|
1.46 |
|
1.28 |
|
+0.18 |
|
| Free Cash flow of Industrial
Activities |
|
1,596 |
|
1,928 |
|
(332) |
|
| Available
liquidity(7) |
|
10,632 |
|
10,521 |
|
+111 |
|
| Adjusted gross margin of
Industrial Activities |
|
22.2% |
|
20.7% |
|
+150 bps |
|
|
Agriculture |
|
|
|
FY 2022 |
|
FY
2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Net sales ($ million) |
|
17,969 |
|
14,721 |
|
+3,248 |
|
+26% |
| Adjusted EBIT ($ million) |
|
2,456 |
|
1,810 |
|
+646 |
|
|
| Adjusted EBIT margin |
|
13.7% |
|
12.3% |
|
+140 bps |
|
|
|
Construction |
|
|
|
FY 2022 |
|
FY
2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Net sales ($ million) |
|
3,572 |
|
3,081 |
|
+491 |
|
+18% |
| Adjusted EBIT ($ million) |
|
124 |
|
90 |
|
+34 |
|
|
| Adjusted EBIT margin |
|
3.5% |
|
2.9% |
|
+60 bps |
|
|
|
Financial Services |
|
|
|
FY 2022 |
|
FY
2021(1) |
|
Change |
|
Change at
c.c.(3) |
| Revenues ($ million) |
|
1,996 |
|
1,672 |
|
+324 |
|
+20% |
| Net income ($ million) |
|
338 |
|
349 |
|
(11) |
|
|
Notes
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.
-
Effective January 1, 2022, the Iveco Group business was separated
from CNH Industrial N.V. by way of a demerger under Dutch law to
Iveco Group N.V. and Iveco Group became a public listed company
independent from CNH Industrial. Accordingly, that business is
presented as discontinued operations beginning in the first quarter
of 2022. The Company has reclassified the financial results of
Iveco Group to Net income (loss) from discontinued operations in
the Condensed Consolidated Statements of Operations for all periods
presented. The Company has reclassified the related assets and
liabilities as Assets held for distribution and Liabilities held
for distribution on the Condensed Consolidated Balance Sheets as of
December 31, 2021. Cash flows from the Company’s discontinued
operations are presented in the Condensed Consolidated Statements
of Cash Flows for all periods. All comparative figures shown
exclude the results of the discontinued operations.
-
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. 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.
-
c.c. means at constant currency.
-
Certain financial information in this report has been presented by
geographic area. Our geographical regions are: (1) North America;
(2) Europe, Middle East and Africa; (3) South America and (4) Asia
Pacific. The geographic designations have the following meanings:
-
North America: United States, Canada, and Mexico;
-
Europe, Middle East, and Africa: member countries of the European
Union, European Free Trade Association, the United Kingdom,
Ukraine, Balkans, Russia, Turkey, the African continent, and the
Middle East;
-
South America: Central and South America, and the Caribbean
Islands; and
-
Asia Pacific: Continental Asia (including the Indian subcontinent)
and Oceania.
-
Net sales reflecting the exchange rate of 1.05 EUR/USD
-
Comparison vs. September 30, 2022
-
Comparison vs. December 31, 2021
-
The Company is unable to provide this reconciliation without
unreasonable effort due to the uncertainty and inherent difficulty
of predicting the occurrence, the financial impact, and the periods
in which the adjustments may be recognized. For the same reasons,
the Company is unable to address the probable significance of the
unavailable information, which could be material to future
results.
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 operating results and
enhance the readers’ ability to assess CNH Industrial’s 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 under U.S. GAAP or EU-IFRS and are
unlikely to be comparable to other similarly titled measures used
by other companies and are not intended to be substitutes for
measures of financial performance and financial position as
prepared in accordance with U.S. GAAP and/or EU-IFRS.
CNH Industrial’s non-GAAP financial measures are
defined as follows:
- Adjusted EBIT of
Industrial Activities under U.S. GAAP: is defined as net income
(loss) before the following items: Income taxes, Financial
Services’ results, Industrial Activities’ interest expenses, net,
foreign exchange gains/losses, finance and non-service component of
pension and other post-employment benefit costs, restructuring
expenses, and certain non-recurring items. 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 EBIT of
Industrial Activities under EU-IFRS: is defined as profit/(loss)
before the following items: Taxes, Financial Services’ results,
Industrial Activities’ financial expenses, restructuring costs, and
certain non-recurring items.
- Adjusted EBIT
Margin of Industrial Activities: is computed by dividing Adjusted
EBIT of Industrial Activities by Net Sales of Industrial
Activities.
- Adjusted Net Income
(Loss): is defined as net income (loss), less restructuring charges
and non-recurring items, after tax.
- 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. When we provide guidance for adjusted diluted EPS,
we do not provide guidance on an earnings per share basis because
the GAAP measure will include potentially significant items that
have not yet occurred and are difficult to predict with reasonable
certainty prior to year-end.
- Adjusted Income Tax
(Expense) Benefit: is defined as income taxes less the tax effect
of restructuring expenses and non-recurring items, and
non-recurring tax charges or benefits.
- 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.
- Adjusted Gross
Profit Margin of Industrial Activities: is computed by dividing Net
sales less Cost of goods sold, as adjusted by non-recurring items,
by Net sales.
- Net Cash (Debt) and
Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is
defined as total debt less intersegment notes receivable, cash and
cash equivalents, restricted cash, other current financial assets
(primarily current securities, short-term deposits and investments
towards high-credit rating counterparties) and derivative hedging
debt. CNH Industrial provides the reconciliation of Net Cash (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 Cash (Debt) of Industrial Activities.
- Free Cash Flow of
Industrial Activities (or Industrial Free Cash Flow): refers to
Industrial Activities only, and is computed as consolidated cash
flow from operating activities less: cash flow from operating
activities of Financial Services; investments of Industrial
Activities in assets sold under operating leases, property, plant
and equipment and intangible assets; change in derivatives hedging
debt of Industrial Activities; as well as other changes and
intersegment eliminations.
- Available
Liquidity: is defined as cash and cash equivalents plus restricted
cash, undrawn medium-term unsecured committed facilities, net
receivables/payables with Iveco Group N.V. and other current
financial assets (primarily current securities, short-term deposits
and investments in instruments of high-credit rating
counterparties).
-
Change excl. FX or Constant Currency: CNH Industrial discusses the
fluctuations in revenues on a constant currency basis by applying
the prior year average exchange rates to current year’s revenues
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
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, liquidity, capital structure or other financial items;
costs; and plans and objectives of management regarding operations
and products, are forward-looking statements. Forward looking
statements also include statements regarding the future performance
of CNH Industrial and its subsidiaries on a standalone basis. 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 they occur with a degree of severity
that the Company is unable to predict) or other assumptions
underlying any of the forward-looking statements prove to be
incorrect, including any assumptions regarding strategic plans, 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: economic conditions in each of our markets, including the
significant uncertainty caused by the war in the Ukraine; the
duration and economic, operational and financial impacts of the
global COVID-19 pandemic; production and supply chain disruptions,
including industry capacity constraints, material availability, and
global logistics delays and constraints; the many interrelated
factors that affect consumer confidence and worldwide demand for
capital goods and capital goods-related products; changes in
government policies regarding banking, monetary and fiscal policy;
legislation, particularly pertaining 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; volatility in international trade caused by the
imposition of tariffs, sanctions, embargoes, and trade wars;
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; labor relations; interest rates and
currency exchange rates; inflation and deflation; energy prices;
prices for agricultural commodities and material price increases;
housing starts and other construction activity; our ability to
obtain financing or to refinance existing debt; price pressure on
new and used equipment; the resolution of pending litigation and
investigations on a wide range of topics, including dealer and
supplier litigation, intellectual property rights disputes, product
warranty and defective product claims, and emissions and/or fuel
economy regulatory and contractual issues; security breaches,
cybersecurity attacks, technology failures, and other disruptions
to the information technology infrastructure of CNH Industrial and
its suppliers and dealers; security breaches with respect to our
products; our pension plans and other post-employment obligations;
political and civil unrest; volatility and deterioration of capital
and financial markets, including pandemics, terrorist attacks in
Europe and elsewhere; our ability to realize the anticipated
benefits from our business initiatives as part of our strategic
plan; our failure to realize, or a delay in realizing, all of the
anticipated benefits of our acquisitions, joint ventures, strategic
alliances or divestitures and other similar risks and
uncertainties, and our success in managing the risks involved in
the foregoing.
Forward-looking statements are based upon
assumptions relating to the factors described in this earnings
release, which are sometimes based upon estimates and data received
from third parties. Such estimates and data are often revised.
Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many
of which are outside CNH Industrial’s control. CNH Industrial
expressly disclaims any intention or obligation to provide, update
or revise any forward-looking statements in this announcement to
reflect any change in expectations or any change in events,
conditions or circumstances on which these forward-looking
statements are based. Further information concerning CNH
Industrial, 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.
Conference Call and
Webcast
Today, at 3:30 p.m. CET / 2:30 p.m. GMT/ 9:30
a.m. ET, management will hold a conference call to present fourth
quarter 2022 results to financial analysts and institutional
investors. The call can be followed live online at https://bit.ly/CNH_Industrial_Q4FY_2022 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 conference call.
London, February
2, 2023
CONTACTS
Media Inquiries – Laura Overall
Tel +44 207 925 1964 or Rebecca Fabian Tel +1 312 515 2249 (Email
mediarelations@cnhind.com)
Investor Relations – Jason
Omerza Tel +1 630 740 8079 or Federico Pavesi Tel +39 345 605 6218
(Email investor.relations@cnhind.com)
CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Operations for the
three months and
years ended
December
31,
2022 and 2021
(Unaudited,
U.S.-GAAP)
| |
|
Three Months Ended December
31, |
|
Years Ended
December
31, |
| ($ million) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Revenues |
|
|
|
|
|
|
|
|
|
Net sales |
|
6,352 |
|
4,994 |
|
21,541 |
|
17,802 |
|
Finance, interest and other income |
|
591 |
|
486 |
|
2,010 |
|
1,694 |
| TOTAL
REVENUES |
|
6,943 |
|
5,480 |
|
23,551 |
|
19,496 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
4,978 |
|
4,045 |
|
16,797 |
|
14,109 |
|
Selling, general and administrative expenses |
|
528 |
|
431 |
|
1,752 |
|
1,454 |
|
Research and development expenses |
|
257 |
|
189 |
|
866 |
|
642 |
|
Restructuring expenses |
|
12 |
|
14 |
|
31 |
|
35 |
|
Interest expense |
|
244 |
|
132 |
|
734 |
|
549 |
|
Other, net |
|
199 |
|
346 |
|
689 |
|
768 |
| TOTAL COSTS AND
EXPENSES |
|
6,218 |
|
5,157 |
|
20,869 |
|
17,557 |
| |
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES AND EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
|
725 |
|
323 |
|
2,682 |
|
1,939 |
| Income tax (expense)
benefit |
|
(168) |
|
118 |
|
(747) |
|
(229) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
35 |
|
23 |
|
104 |
|
91 |
| Net income (loss) from
continuing operations |
|
592 |
|
464 |
|
2,039 |
|
1,801 |
| Net income (loss) from
discontinued operations |
|
— |
|
(157) |
|
— |
|
(41) |
| NET INCOME
(LOSS) |
|
592 |
|
307 |
|
2,039 |
|
1,760 |
| Net income attributable to
noncontrolling interests |
|
— |
|
5 |
|
10 |
|
37 |
| NET INCOME (LOSS)
ATTRIBUTABLE TO CNH INDUSTRIAL N.V. |
|
592 |
|
302 |
|
2,029 |
|
1,723 |
| |
|
|
|
|
|
|
|
|
| Basic earnings (loss)
per share attributable to common shareholders (in $) |
|
|
|
|
|
|
|
|
| Continuing operations |
|
0.44 |
|
0.34 |
|
1.50 |
|
1.32 |
| Discontinued operations |
|
— |
|
(0.12) |
|
— |
|
(0.05) |
| Basic earnings per
share attributable to CNH Industrial N.V. |
|
0.44 |
|
0.22 |
|
1.50 |
|
1.27 |
| Diluted earnings
(loss) per share attributable to common shareholders (in
$) |
|
|
|
|
|
|
|
|
| Continuing operations |
|
0.43 |
|
0.34 |
|
1.49 |
|
1.32 |
| Discontinued operations |
|
— |
|
(0.12) |
|
— |
|
(0.05) |
| Diluted earnings per
share attributable to CNH Industrial N.V. |
|
0.43 |
|
0.22 |
|
1.49 |
|
1.27 |
| Average shares
outstanding (in millions) |
|
|
|
|
|
|
|
|
| Basic |
|
1,345 |
|
1,355 |
|
1,351 |
|
1,354 |
| Diluted |
|
1,361 |
|
1,363 |
|
1,362 |
|
1,361 |
| Cash dividends
declared per common share |
|
— |
|
— |
|
0.302 |
|
0.132 |
These Condensed Consolidated Statements of
Operations should be read in conjunction with the Company’s Audited
Consolidated Financial Statements and Notes for the year ended
December 31, 2021 included in the Annual Report on Form 20-F. These
Condensed Consolidated Statements of Operations represent the
consolidation of all CNH Industrial N.V. subsidiaries.
CNH INDUSTRIAL N.V.
Condensed Consolidated Balance
Sheets as of
December
31,
2022 and December 31, 2021
(Unaudited,
U.S.-GAAP)
| ($ million) |
|
December 31, 2022 |
|
December 31, 2021 |
| ASSETS |
|
|
|
|
| Cash and cash equivalents |
|
4,376 |
|
5,044 |
| Restricted cash |
|
753 |
|
801 |
| Financing receivables,
net |
|
19,260 |
|
15,376 |
| Receivables from Iveco Group
N.V. |
|
298 |
|
— |
| Inventories, net |
|
4,811 |
|
4,216 |
| Property, plant and equipment,
net and equipment under operating lease |
|
3,034 |
|
3,213 |
| Intangible assets, net |
|
4,451 |
|
4,417 |
| Other receivables and
assets |
|
2,398 |
|
2,803 |
| Assets held for
distribution |
|
- |
|
13,546 |
| TOTAL
ASSETS |
|
39,381 |
|
49,416 |
| LIABILITIES AND
EQUITY |
|
|
|
|
| Debt |
|
22,962 |
|
20,897 |
| Payables to Iveco Group
N.V. |
|
156 |
|
502 |
| Other payables and
liabilities |
|
9,287 |
|
9,272 |
| Liabilities held for
distribution |
|
- |
|
11,892 |
| Total
Liabilities |
|
32,405 |
|
42,563 |
| Redeemable noncontrolling
interest |
|
49 |
|
45 |
| Equity |
|
6,927 |
|
6,808 |
| TOTAL LIABILITIES AND
EQUITY |
|
39,381 |
|
49,416 |
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, 2021 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 Statement of Cash Flows for
the years ended
December
31,
2022 and 2021
(Unaudited,
U.S.-GAAP)
| |
|
Years Ended December 31, |
| ($ million) |
|
2022 |
|
2021 |
| Net income (loss) |
|
2,039 |
|
1,760 |
| Less: Net income (loss) of
Discontinued Operations |
|
— |
|
(41) |
| Net income (loss) of
Continuing Operations |
|
2,039 |
|
1,801 |
| Adjustments to reconcile net
income (loss) from Continuing Operations to net cash provided by
(used in) operating activities from Continuing Operations: |
|
(1,482) |
|
1,397 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
|
557 |
|
3,198 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
884 |
| TOTAL NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
557 |
|
4,082 |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(3,009) |
|
(4,570) |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
(431) |
| TOTAL NET CASH
PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
(3,009) |
|
(5,001) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS |
|
1,964 |
|
(1,399) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
(46) |
| TOTAL NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
1,964 |
|
(1,445) |
| Effect of foreign exchange
rate changes on cash and cash equivalents and restricted cash |
|
(228) |
|
(403) |
| DECREASE IN CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH |
|
(716) |
|
(2,767) |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, BEGINNING OF YEAR |
|
5,845 |
|
9,629 |
| CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
|
5,129 |
|
6,862 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (Discontinued Operations) |
|
— |
|
1,017 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (Continuing Operations) |
|
5,129 |
|
5,845 |
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, 2021 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 December
31,
2022 and 2021
(Unaudited, U.S.-GAAP)
| |
|
Three Months Ended
December
31, 2022 |
|
Three Months Ended December
31, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
6,352 |
|
— |
|
— |
|
6,352 |
|
4,994 |
|
— |
|
— |
|
4,994 |
| Finance, interest, and other
income |
|
43 |
|
577 |
|
(29) |
(2) |
591 |
|
16 |
|
478 |
|
(8) |
(2) |
486 |
| TOTAL
REVENUES |
|
6,395 |
|
577 |
|
(29) |
|
6,943 |
|
5,010 |
|
478 |
|
(8) |
|
5,480 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
4,978 |
|
— |
|
— |
|
4,978 |
|
4,045 |
|
— |
|
— |
|
4,045 |
| Selling, general and
administrative expenses |
|
462 |
|
66 |
|
— |
|
528 |
|
391 |
|
40 |
|
— |
|
431 |
| Research and development
expenses |
|
257 |
|
— |
|
— |
|
257 |
|
189 |
|
— |
|
— |
|
189 |
| Restructuring expenses |
|
12 |
|
— |
|
— |
|
12 |
|
14 |
|
— |
|
— |
|
14 |
| Interest expense |
|
65 |
|
208 |
|
(29) |
(3) |
244 |
|
42 |
|
98 |
|
(8) |
(3) |
132 |
| Other, net |
|
(14) |
|
213 |
|
— |
|
199 |
|
114 |
|
232 |
|
— |
|
346 |
| TOTAL COSTS AND
EXPENSES |
|
5,760 |
|
487 |
|
(29) |
|
6,218 |
|
4,795 |
|
370 |
|
(8) |
|
5,157 |
| INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES AND EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
|
635 |
|
90 |
|
— |
|
725 |
|
215 |
|
108 |
|
— |
|
323 |
| Income tax (expense)
benefit |
|
(149) |
|
(19) |
|
— |
|
(168) |
|
142 |
|
(24) |
|
— |
|
118 |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
31 |
|
4 |
|
— |
|
35 |
|
17 |
|
6 |
|
— |
|
23 |
| NET INCOME (LOSS) Continuing
Operations |
|
517 |
|
75 |
|
— |
|
592 |
|
374 |
|
90 |
|
— |
|
464 |
| NET INCOME (LOSS) Discontinued
Operations |
|
— |
|
— |
|
— |
|
— |
|
(179) |
|
22 |
|
— |
|
(157) |
| NET INCOME
(LOSS) |
|
517 |
|
75 |
|
— |
|
592 |
|
195 |
|
112 |
|
— |
|
307 |
(1) Industrial Activities represents
the enterprise without Financial Services. Industrial Activities
includes the Company’s Agriculture and Construction segments, and
other corporate assets, liabilities, revenues and expenses not
reflected within Financial Services.
(2) Elimination of Financial Services’ interest income
earned from Industrial Activities.
(3) Elimination of Industrial Activities’ interest
expense to Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the
years ended
December
31,
2022 and 2021
(Unaudited, U.S.-GAAP)
| |
|
Year Ended
December
31, 2022 |
|
Year Ended
December
31, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
21,541 |
|
— |
|
— |
|
21,541 |
|
17,802 |
|
— |
|
— |
|
17,802 |
| Finance, interest and other
income |
|
95 |
|
1,996 |
|
(81) |
(2) |
2,010 |
|
59 |
|
1,672 |
|
(37) |
(2) |
1,694 |
| TOTAL
REVENUES |
|
21,636 |
|
1,996 |
|
(81) |
|
23,551 |
|
17,861 |
|
1,672 |
|
(37) |
|
19,496 |
| Costs and
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
16,797 |
|
— |
|
— |
|
16,797 |
|
14,109 |
|
— |
|
— |
|
14,109 |
| Selling, general and
administrative expenses |
|
1,549 |
|
203 |
|
— |
|
1,752 |
|
1,327 |
|
127 |
|
— |
|
1,454 |
| Research and development
expenses |
|
866 |
|
— |
|
— |
|
866 |
|
642 |
|
— |
|
— |
|
642 |
| Restructuring expenses |
|
31 |
|
— |
|
— |
|
31 |
|
35 |
|
— |
|
— |
|
35 |
| Interest expense |
|
214 |
|
601 |
|
(81) |
(3) |
734 |
|
177 |
|
409 |
|
(37) |
(3) |
549 |
| Other, net |
|
(55) |
|
744 |
|
— |
|
689 |
|
73 |
|
695 |
|
— |
|
768 |
| TOTAL COSTS AND
EXPENSES |
|
19,402 |
|
1,548 |
|
(81) |
|
20,869 |
|
16,363 |
|
1,231 |
|
(37) |
|
17,557 |
| INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES AND EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
|
2,234 |
|
448 |
|
— |
|
2,682 |
|
1,498 |
|
441 |
|
— |
|
1,939 |
| Income tax (expense)
benefit |
|
(622) |
|
(125) |
|
— |
|
(747) |
|
(122) |
|
(107) |
|
— |
|
(229) |
| Equity in income (loss) of
unconsolidated subsidiaries and affiliates |
|
89 |
|
15 |
|
— |
|
104 |
|
76 |
|
15 |
|
— |
|
91 |
| NET INCOME (LOSS) Continuing
Operations |
|
1,701 |
|
338 |
|
— |
|
2,039 |
|
1,452 |
|
349 |
|
— |
|
1,801 |
| NET INCOME (LOSS) Discontinued
Operations |
|
— |
|
— |
|
— |
|
— |
|
(112) |
|
71 |
|
— |
|
(41) |
| NET INCOME
(LOSS) |
|
1,701 |
|
338 |
|
— |
|
2,039 |
|
1,340 |
|
420 |
|
— |
|
1,760 |
(1) Industrial Activities represents
the enterprise without Financial Services. Industrial Activities
includes the Company’s Agriculture and Construction segments, and
other corporate assets, liabilities, revenues and expenses not
reflected within Financial Services.
(2) Elimination of Financial Services’ interest income earned
from Industrial Activities.
(3) Elimination of Industrial Activities’ interest
expense to Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Balance Sheets
as of December
31,
2022 and December 31, 2021
(Unaudited, U.S.-GAAP)
| |
|
December
31, 2022 |
|
December 31, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
|
Consolidated |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
3,802 |
|
574 |
|
— |
|
4,376 |
|
4,386 |
|
658 |
|
— |
|
5,044 |
| Restricted cash |
|
158 |
|
595 |
|
— |
|
753 |
|
128 |
|
673 |
|
— |
|
801 |
| Financing receivables,
net |
|
898 |
|
19,313 |
|
(951) |
(2) |
19,260 |
|
199 |
|
15,508 |
|
(331) |
(2) |
15,376 |
| Receivables from Iveco Group
N.V. |
|
234 |
|
64 |
|
— |
|
298 |
|
— |
|
— |
|
— |
|
— |
| Inventories, net |
|
4,798 |
|
13 |
|
— |
|
4,811 |
|
4,187 |
|
29 |
|
— |
|
4,216 |
| Property, plant and equipment,
net and equipment on operating lease |
|
1,561 |
|
1,473 |
|
— |
|
3,034 |
|
1,504 |
|
1,709 |
|
— |
|
3,213 |
| Intangible assets, net |
|
4,287 |
|
164 |
|
— |
|
4,451 |
|
4,255 |
|
162 |
|
— |
|
4,417 |
| Other receivables and
assets |
|
2,141 |
|
477 |
|
(220) |
(3) |
2,398 |
|
2,656 |
|
345 |
|
(198) |
(3) |
2,803 |
| Assets held for
distribution |
|
— |
|
— |
|
— |
|
— |
|
9,814 |
|
4,543 |
|
(811) |
|
13,546 |
| TOTAL
ASSETS |
|
17,879 |
|
22,673 |
|
(1,171) |
|
39,381 |
|
27,129 |
|
23,627 |
|
(1,340) |
|
49,416 |
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debt |
|
4,972 |
|
18,941 |
|
(951) |
(2) |
22,962 |
|
5,485 |
|
15,743 |
|
(331) |
(2) |
20,897 |
| Payables to Iveco Group
N.V. |
|
5 |
|
151 |
|
— |
|
156 |
|
334 |
|
168 |
|
— |
|
502 |
| Other payables and
liabilities |
|
8,211 |
|
1,296 |
|
(220) |
(3) |
9,287 |
|
8,426 |
|
1,044 |
|
(198) |
(3) |
9,272 |
| Liabilities held for
distribution |
|
— |
|
— |
|
— |
|
— |
|
8,985 |
|
3,718 |
|
(811) |
|
11,892 |
| Total Liabilities |
|
13,188 |
|
20,388 |
|
(1,171) |
|
32,405 |
|
23,230 |
|
20,673 |
|
(1,340) |
|
42,563 |
| Redeemable noncontrolling
interest |
|
49 |
|
— |
|
— |
|
49 |
|
45 |
|
— |
|
— |
|
45 |
| Equity |
|
4,642 |
|
2,285 |
|
— |
|
6,927 |
|
3,854 |
|
2,954 |
|
— |
|
6,808 |
| TOTAL LIABILITIES AND
EQUITY |
|
17,879 |
|
22,673 |
|
(1,171) |
|
39,381 |
|
27,129 |
|
23,627 |
|
(1,340) |
|
49,416 |
(1) Industrial Activities represents
the enterprise without Financial Services. Industrial Activities
includes the Company’s Agriculture and Construction segments, and
other corporate assets, liabilities, revenues and expenses not
reflected within Financial Services.
(2) This item includes the elimination of
receivables/payables between Industrial Activities and Financial
Services.
(3) This item primarily represents the reclassification
of deferred tax assets/liabilities in the same taxing jurisdiction
and elimination of intercompany activity between Industrial
Activities and Financial Services.
CNH INDUSTRIAL N.V.
Supplemental Statements of Cash Flows for the
years ended
December
31,
2022 and 2021
(Unaudited, U.S.-GAAP)
| |
|
Year ended
December
31, 2022 |
|
Year ended
December
31, 2021 |
| ($ million) |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
(3) |
Consolidated |
|
Industrial
Activities(1) |
|
Financial Services |
|
Eliminations |
(3) |
Consolidated |
| Net income (loss) |
|
1,701 |
|
338 |
|
— |
|
2,039 |
|
1,340 |
|
420 |
|
— |
|
1,760 |
|
Less: Net income (loss) of Discontinued Operations |
|
— |
|
— |
|
— |
|
— |
|
(112) |
|
71 |
|
— |
|
(41) |
| Net income (loss) of
Continuing Operations |
|
1,701 |
|
338 |
|
— |
|
2,039 |
|
1,452 |
|
349 |
|
— |
|
1,801 |
|
Adjustments to reconcile net income (loss) from Continuing
Operations to net cash provided by (used in) operating activities
from Continuing Operations: |
|
304 |
|
(1,598) |
|
(188) |
(2) |
(1,482) |
|
799 |
|
909 |
|
(311) |
(2) |
1,397 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
|
2,005 |
|
(1,260) |
|
(188) |
|
557 |
|
2,251 |
|
1,258 |
|
(311) |
|
3,198 |
| NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
— |
|
— |
|
— |
|
856 |
|
31 |
|
(3) |
|
884 |
| TOTAL NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
2,005 |
|
(1,260) |
|
(188) |
|
557 |
|
3,107 |
|
1,289 |
|
(314) |
|
4,082 |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(1,653) |
|
(1,394) |
|
38 |
|
(3,009) |
|
(3,347) |
|
(1,233) |
|
10 |
|
(4,570) |
| NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
— |
|
— |
|
— |
|
(523) |
|
87 |
|
5 |
|
(431) |
| TOTAL NET CASH
PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
(1,653) |
|
(1,394) |
|
38 |
|
(3,009) |
|
(3,870) |
|
(1,146) |
|
15 |
|
(5,001) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(691) |
|
2,505 |
|
150 |
|
1,964 |
|
(1,629) |
|
(69) |
|
299 |
|
(1,399) |
| NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
— |
|
— |
|
— |
|
(16) |
|
(30) |
|
— |
|
(46) |
| TOTAL NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
(691) |
|
2,505 |
|
150 |
(4) |
1,964 |
|
(1,645) |
|
(99) |
|
299 |
(4) |
(1,445) |
| Effect of foreign exchange
rate changes on cash and cash equivalents and restricted cash |
|
(215) |
|
(13) |
|
— |
|
(228) |
|
(372) |
|
(31) |
|
— |
|
(403) |
| DECREASE IN CASH AND
CASH EQUIVALENTS AND RESTRICTED CASH |
|
(554) |
|
(162) |
|
— |
|
(716) |
|
(2,780) |
|
13 |
|
— |
|
(2,767) |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, BEGINNING OF YEAR |
|
4,514 |
|
1,331 |
|
— |
|
5,845 |
|
8,116 |
|
1,513 |
|
— |
|
9,629 |
| CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
|
3,960 |
|
1,169 |
|
— |
|
5,129 |
|
5,336 |
|
1,526 |
|
— |
|
6,862 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (DISCONTINUED OPERATIONS) |
|
— |
|
— |
|
— |
|
— |
|
822 |
|
195 |
|
— |
|
1,017 |
| CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH, END OF PERIOD (CONTINUING OPERATIONS) |
|
3,960 |
|
1,169 |
|
— |
|
5,129 |
|
4,514 |
|
1,331 |
|
— |
|
5,845 |
(1) Industrial Activities represents
the enterprise without Financial Services. Industrial Activities
includes the Company’s Agriculture and Construction segments, and
other corporate assets, liabilities, revenues and expenses not
reflected within Financial Services.
(2) This item includes the elimination of dividends
from Financial Services to Industrial Activities, which are
included in Industrial Activities net cash used in operating
activities.
(3) This item includes the elimination of certain minor
activities between Industrial Activities and Financial
Services.
(4) This item includes the elimination of paid in
capital from Industrial Activities to Financial Services.
Other Supplemental Financial Information
(Unaudited)
|
Reconciliation of Consolidated Net Income to Adjusted EBIT
of Industrial Activities by segment under U.S.-GAAP |
| ($
million) |
|
Three Months ended December
31, 2022 |
| |
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
592 |
| Less: Consolidated Income
tax (expense) benefit |
|
|
|
|
|
|
|
(168) |
| Consolidated Income
before taxes |
|
|
|
|
|
|
|
760 |
| Less: Financial
Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
75 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
19 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
22 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
45 |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(12) |
| Adjustments for the
following Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
5 |
|
7 |
|
— |
|
12 |
|
Other discrete items(2) |
|
— |
|
— |
|
(53) |
|
(53) |
| Adjusted EBIT of
Industrial Activities |
|
701 |
|
34 |
|
(55) |
|
680 |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months ended
December
31, 2021 |
| |
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
307 |
| Less: Consolidated Net
Income (loss) of Discontinued Operations |
|
|
|
|
|
|
|
(157) |
| Consolidated Net
income (loss) of Continuing Operations |
|
|
|
|
|
|
|
464 |
| Less: Consolidated Income
tax (expense) benefit |
|
|
|
|
|
|
|
118 |
| Consolidated Income
(loss) before taxes (continuing operations) |
|
|
|
|
|
|
|
346 |
| Less: Financial
Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
90 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
24 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
26 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
7 |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(41) |
| Adjustments for the
following Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
12 |
|
2 |
|
— |
|
14 |
|
Other discrete items(2) |
|
— |
|
— |
|
140 |
|
140 |
| Adjusted EBIT of
Industrial Activities |
|
414 |
|
20 |
|
(56) |
|
378 |
(1) In the three months ended
December 31, 2022, this item includes the pre-tax gain of $6
million as a result of the amortization over the 4 years of the
$101 million positive impact from the 2021 modifications of a
healthcare plan in the U.S. In the three months ended December 31,
2021, this item includes the pre-tax gain of $29 million as a
result of the 2018 modification of a healthcare plan in the U.S.
and a pre-tax gain of $5 million as a result of the amortization
over 4 years of the $101 million positive impact from 2021
modifications of a healthcare plan in the U.S.
(2) In the three months ended December 31,
2022, this item included a $65 million gain on the sale of our
Canada parts depot, partially offset by $12 million of separation
costs incurred in connection with our spin-off of the Iveco Group
Business. In the three months ended December 31, 2021, this item
also includes $101 million separation and transaction costs
incurred in connection with the spin-off of the Iveco Group
Business (the Demerger), a charge of $51 million for the
transaction costs related to the acquisition of Raven Industries,
Inc., as well as a gain of $12 million for the fair value
adjustment of Monarch Tractor investment.
Other Supplemental Financial Information
(Unaudited)
|
Reconciliation of Consolidated Net Income to Adjusted EBIT
of Industrial Activities by segment under
US-GAAP |
| ($
million) |
|
Year Ended
December
31, 2022 |
| |
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
2,039 |
| Less: Consolidated Income
tax (expense) benefit |
|
|
|
|
|
|
|
(747) |
| Consolidated Income
before taxes |
|
|
|
|
|
|
|
2,786 |
| Less: Financial
Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
338 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
125 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
119 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
59 |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(124) |
| Adjustments for the
following Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
21 |
|
10 |
|
— |
|
31 |
|
Other discrete items(2) |
|
— |
|
— |
|
25 |
|
25 |
| Adjusted EBIT of
Industrial Activities |
|
2,456 |
|
124 |
|
(147) |
|
2,433 |
| |
|
|
|
|
|
|
|
|
| |
|
Year Ended
December
31, 2021 |
| |
|
Agriculture |
|
Construction |
|
Unallocated items, eliminations and other |
|
Total |
| Consolidated Net
income |
|
|
|
|
|
|
|
1,760 |
| Less: Consolidated Net
Income (loss) of Discontinued Operations |
|
|
|
|
|
|
|
(41) |
| Consolidated Net
income (loss) of Continuing Operations |
|
|
|
|
|
|
|
1,801 |
| Less: Consolidated Income
tax (expense) benefit |
|
|
|
|
|
|
|
(229) |
| Consolidated Income
(loss) before taxes (continuing operations) |
|
|
|
|
|
|
|
2,030 |
| Less: Financial
Services |
|
|
|
|
|
|
|
|
|
Financial Services Net income |
|
|
|
|
|
|
|
349 |
|
Financial Services Income taxes |
|
|
|
|
|
|
|
107 |
| Add back of the following
Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Interest expenses, net of interest income and eliminations |
|
|
|
|
|
|
|
118 |
|
Foreign exchange (gains) losses, net |
|
|
|
|
|
|
|
1 |
|
Finance and non-service component of Pension and other
post-employment benefit costs(1) |
|
|
|
|
|
|
|
(143) |
| Adjustments for the
following Industrial Activities items: |
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
20 |
|
15 |
|
— |
|
35 |
|
Other discrete items(2) |
|
— |
|
— |
|
178 |
|
178 |
| Adjusted EBIT of
Industrial Activities |
|
1,810 |
|
90 |
|
(137) |
|
1,763 |
(1) In the year ended December 31,
2022, this item includes the pre-tax gain of $90 million as a
result of the amortization over approximately 4.5 years of the $527
million positive impact from the 2018 modification of a healthcare
plan in the U.S. and a pre-tax gain of $24 million as a result of
the amortization over 4 years of the $101 million positive impact
from the 2021 modifications of a healthcare plan in the U.S. In the
year ended December 31, 2021, this item includes the pre-tax gain
of $119 million as a result of the 2018 modification and a pre-tax
gain of $5 million as a result of the amortization over 4 years of
the $101 million positive impact from 2021 modifications of a
healthcare plan in the U.S.
(2) In the year ended December 31, 2022,
this item included $43 million of asset write-downs, $25 million of
separation costs incurred in a connection with our spin-off of the
Iveco Group Business and $22 million of costs related to the
activity of the Raven segments held for sale, including the loss on
the sale of the Engineered Films and Aerostar divisions, partially
offset by a $65 million dollar gain on the sale of our Canada parts
depot. In the year ended December 31, 2021, this item included $133
million separation costs in connection with the spin-off of the
Iveco Group business and a charge of $57 million for transaction
costs related to the acquisition of Raven Industries, Inc.,
partially offset by a gain of $12 million for a fair value
adjustment of Monarch Tractor investments.
Other Supplemental Financial
Information
(Unaudited)
|
Reconciliation of Total (Debt) to Net Cash (Debt)
under US-GAAP |
| ($ million) |
|
Consolidated |
|
Industrial
Activities |
|
Financial Services |
| |
|
December 31, 2022 |
|
December 31, 2021 |
|
December 31, 2022 |
|
December 31, 2021 |
|
December 31, 2022 |
|
December 31, 2021 |
| Third party (debt) |
|
(22,962) |
|
(20,897) |
|
(4,909) |
|
(5,335) |
|
(18,053) |
|
(15,562) |
| Intersegment notes
payable |
|
— |
|
— |
|
(63) |
|
(150) |
|
(888) |
|
(181) |
| Payable to Iveco Group
N.V.(4) |
|
(156) |
|
(3,986) |
|
(5) |
|
(3,764) |
|
(151) |
|
(222) |
| Total
(Debt)(1) |
|
(23,118) |
|
(24,883) |
|
(4,977) |
|
(9,249) |
|
(19,092) |
|
(15,965) |
| Cash and cash equivalents |
|
4,376 |
|
5,044 |
|
3,802 |
|
4,386 |
|
574 |
|
658 |
| Restricted cash |
|
753 |
|
801 |
|
158 |
|
128 |
|
595 |
|
673 |
| Intersegment notes
receivable |
|
— |
|
— |
|
888 |
|
181 |
|
63 |
|
150 |
| Receivables from Iveco Group
N.V.(4) |
|
298 |
|
3,484 |
|
234 |
|
3,430 |
|
64 |
|
54 |
| Other current financial
assets(2) |
|
300 |
|
1 |
|
300 |
|
1 |
|
— |
|
— |
| Derivatives hedging debt |
|
(43) |
|
(3) |
|
(43) |
|
(3) |
|
— |
|
— |
| Net Cash
(Debt)(3) |
|
(17,434) |
|
(15,556) |
|
362 |
|
(1,126) |
|
(17,796) |
|
(14,430) |
(1) Total (Debt) of Industrial
Activities includes Intersegment notes payable to Financial
Services of $63 million and $150 million as of December 31, 2022
and December 31, 2021, respectively. Total (Debt) of Financial
Services includes Intersegment notes payable to Industrial
Activities of $888 million and $181 million as of December 31, 2022
and December 31, 2021, respectively.
(2) This item includes short-term deposits and
investments towards high-credit rating counterparties.
(3) The net intersegment receivable/(payable) balance
recorded by Financial Services relating to Industrial Activities
was ($825) million and ($31) million as of December 31, 2022 and
December 31, 2021, respectively.
(4) For December 31, 2021, this item is shown net on
the CNH Industrial balance sheet.
|
Reconciliation of Cash and cash equivalents to Available
liquidity under US-GAAP |
| ($ million) |
December
31,
2022 |
September 30, 2022 |
June 30,
2022 |
March 31,
2022 |
| Cash and cash equivalents |
4,376 |
3,154 |
2,855 |
3,219 |
| Restricted cash |
753 |
660 |
729 |
842 |
| Undrawn committed
facilities |
5,061 |
4,700 |
5,002 |
5,087 |
| Receivables from Iveco Group
N.V. |
298 |
224 |
281 |
297 |
| Payables to Iveco Group
N.V. |
(156) |
(95) |
(73) |
(47) |
| Other current financial
assets(1) |
300 |
2 |
1 |
1 |
| Available liquidity |
10,632 |
8,645 |
8,795 |
9,399 |
(1) This item includes short-term deposits and investments
towards high-credit rating counterparties.
Other Supplemental Financial
Information
(Unaudited)
|
Change in Net Cash (Debt) of Industrial Activities
under US-GAAP |
|
Years ended
December
31, |
|
|
|
Three Months ended
December
31, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
(1,126) |
|
(893) |
|
Net Cash (Debt) of Industrial Activities at beginning of
period |
|
(1,272) |
|
(125) |
|
2,433 |
|
1,763 |
|
Adjusted EBIT of Industrial
Activities |
|
680 |
|
378 |
|
325 |
|
293 |
|
Depreciation and
Amortization |
|
75 |
|
76 |
|
6 |
|
2 |
|
Depreciation of assets under
operating leases |
|
4 |
|
1 |
|
(646) |
|
(376) |
|
Cash interest and taxes |
|
(135) |
|
(68) |
|
395 |
|
395 |
|
Changes in provisions and
similar(1) |
|
101 |
|
134 |
|
(510) |
|
248 |
|
Change in working capital |
|
1,457 |
|
904 |
|
(456) |
|
(360) |
|
Investments in property, plant
and equipment, and intangible assets |
|
(213) |
|
(165) |
|
49 |
|
(37) |
|
Other changes |
|
80 |
|
(35) |
|
1,596 |
|
1,928 |
|
Free cash flow of
Industrial Activities – Continuing operations |
|
2,049 |
|
1,225 |
|
(576) |
|
(188) |
|
Capital increases and
dividends(2) |
|
(44) |
|
(4) |
|
468 |
|
(1,973) |
|
Currency translation
differences and other(3) |
|
(371) |
|
(2,222) |
|
1,488 |
|
(233) |
|
Change in Net Cash
(Debt) of Industrial Activities – Continuing
operations |
|
1,634 |
|
(1,001) |
|
362 |
|
(1,126) |
|
Net Cash (Debt) of
Industrial Activities at end of period |
|
362 |
|
(1,126) |
(1) Including other cash flow items related to operating
lease.
(2) In the three months and years ended
December 31, 2022, this item also includes share buy-back
transactions.
(3) In the year ended December 31, 2022 this item also includes the
proceed of Raven Engineered Films Division for $350 million. In the
year ended December 31, 2021, this item includes the cash out of
$2,246 million for the acquisition of the 100% interest in Raven
and $86 million for the acquisition of the 90% interest in
Sampierana, as well as the charge of $8 million related to the
repurchase of notes.
|
Reconciliation of Net cash provided by (used in) Operating
Activities to Free cash flow of Industrial Activities
under US-GAAP |
|
Years ended December 31, |
|
|
|
Three Months ended December 31, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
557 |
|
3,198 |
|
Net cash provided by (used in) Operating Activities
(Continuing Operations) |
|
1,443 |
|
1,724 |
|
1,448 |
|
(947) |
|
Cash flows from Operating
Activities of Financial Services net of eliminations |
|
744 |
|
(399) |
|
19 |
|
93 |
|
Change in derivatives hedging
debt of Industrial Activities and other |
|
2 |
|
101 |
|
(21) |
|
(19) |
|
Investments in assets sold
under operating lease assets of Industrial Activities |
|
(7) |
|
(1) |
|
(456) |
|
(360) |
|
Investments in property, plant
and equipment, and intangible assets of Industrial Activities |
|
(213) |
|
(165) |
|
49 |
|
(37) |
|
Other
changes(1) |
|
80 |
|
(35) |
|
1,596 |
|
1,928 |
|
Free cash flow of
Industrial Activities |
|
2,049 |
|
1,225 |
(1) This item primarily includes change in intersegment
financial receivables and capital increases in intersegment
investments.
Other Supplemental Financial Information
(Unaudited)
|
Reconciliation of Adjusted net income and Adjusted income
tax (expense) benefit to Net income (loss) and Income tax (expense)
benefit and calculation of Adjusted diluted EPS and Adjusted ETR
under US-GAAP |
|
Years ended
December
31, |
|
|
|
Three Months ended December
31, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
2,039 |
|
1,801 |
|
Net income (loss) – Continuing Operations |
|
592 |
|
464 |
|
(41) |
|
97 |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(46) |
|
120 |
|
6 |
|
(151) |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
(60) |
|
(159) |
|
2,004 |
|
1,747 |
|
Adjusted net income
(loss) |
|
486 |
|
425 |
|
1,994 |
|
1,738 |
|
Adjusted net income (loss)
attributable to CNH Industrial N.V. |
|
486 |
|
423 |
|
1,362 |
|
1,361 |
|
Weighted average shares
outstanding – diluted (million) |
|
1,361 |
|
1,363 |
|
1.46 |
|
1.28 |
|
Adjusted diluted EPS
($) |
|
0.36 |
|
0.31 |
|
|
|
|
|
|
|
|
|
|
|
2,682 |
|
1,939 |
|
Income (loss) from
continuing operations before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and
affiliates |
|
725 |
|
323 |
|
(41) |
|
97 |
|
Adjustments impacting Income
(loss) before income tax (expense) benefit and equity in income of
unconsolidated subsidiaries and affiliates (a) |
|
(46) |
|
120 |
|
2,641 |
|
2,036 |
|
Adjusted income (loss)
from continuing operations before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and affiliates
(A) |
|
679 |
|
443 |
|
|
|
|
|
|
|
|
|
|
|
(747) |
|
(229) |
|
Income tax (expense)
benefit |
|
(168) |
|
118 |
|
6 |
|
(151) |
|
Adjustments impacting Income
tax (expense) benefit (b) |
|
(60) |
|
(159) |
|
(741) |
|
(380) |
|
Adjusted income tax
(expense) benefit (B) |
|
(228) |
|
(41) |
|
|
|
|
|
|
|
|
|
|
|
28.1% |
|
18.7% |
|
Adjusted Effective Tax
Rate (Adjusted ETR) (C=B/A) |
|
33.6% |
|
9.3% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
a) Adjustments
impacting Income (loss) from continuing operations before income
tax (expense) benefit and equity in income of unconsolidated
subsidiaries and affiliates |
|
|
|
|
|
31 |
|
35 |
|
Restructuring expenses |
|
12 |
|
14 |
|
— |
|
8 |
|
Loss on repurchase of
notes |
|
— |
|
— |
|
(90) |
|
(119) |
|
Pre-tax gain related to the
2018 modification of a healthcare plan in the U.S. |
|
— |
|
(29) |
|
(24) |
|
(5) |
|
Pre-tax gain related to the
2021 modification of a healthcare plan in the U.S. |
|
(6) |
|
(5) |
|
43 |
|
— |
|
Asset write-down: Industrial
Activities, Russia Operations |
|
— |
|
— |
|
17 |
|
— |
|
Asset write-down: Financial
Services, Russia Operations |
|
1 |
|
— |
|
25 |
|
133 |
|
Spin related costs |
|
12 |
|
101 |
|
(65) |
|
— |
|
Gain on sale of real
estate |
|
(65) |
|
— |
|
— |
|
(12) |
|
Monarch Tractor investment
fair value adjustment |
|
— |
|
(12) |
|
— |
|
57 |
|
Other discrete items |
|
— |
|
51 |
|
22 |
|
— |
|
Activity of the Raven Segments
held for sale, including loss on sale of the Aerostar and
Engineered Films Division |
|
— |
|
— |
|
(41) |
|
97 |
|
Total |
|
(46) |
|
120 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
b) Adjustments
impacting Income tax (expense) benefit |
|
|
|
|
|
61 |
|
10 |
|
Tax effect of adjustments
impacting Income (loss) before income tax (expense) benefit and
equity in income of unconsolidated subsidiaries and
affiliates(1) |
|
(5) |
|
2 |
|
(55) |
|
(161) |
|
Adjustment to valuation
allowances on deferred tax assets |
|
(55) |
|
(161) |
|
6 |
|
(151) |
|
Total |
|
(60) |
|
(159) |
(1) Includes $12 million of increase to the valuation
allowances on historical deferred tax assets as a result of the
suspension of operations in Russia.
Other Supplemental Financial Information
(Unaudited)
|
Reconciliation of Adjusted gross profit to gross profit
under US-GAAP |
|
Year ended
December
31, |
|
|
|
Three Months ended December
31, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
21,541 |
|
17,802 |
|
Net Sales (A) |
|
6,352 |
|
4,994 |
|
16,797 |
|
14,109 |
|
Cost of goods sold |
|
4,978 |
|
4,045 |
|
4,744 |
|
3,693 |
|
Gross profit (B) |
|
1,374 |
|
949 |
|
41 |
|
— |
|
Asset write down (Russia
operations) |
|
2 |
|
— |
|
4,785 |
|
3,693 |
|
Adjusted gross profit (C) |
|
1,376 |
|
949 |
|
|
|
|
|
|
|
|
|
|
|
22.0% |
|
20.7% |
|
Gross profit margin (B ÷
A) |
|
21.6% |
|
19.0% |
|
22.2% |
|
20.7% |
|
Adjusted gross profit margin
(C ÷ A) |
|
21.7% |
|
19.0% |
|
Revenues by Segment under EU-IFRS |
|
Year ended
December
31, |
|
|
|
Three Months ended December
31, |
|
2022 |
|
2021 |
|
% Change |
|
($ million) |
|
2022 |
|
2021 |
|
% Change |
|
17,969 |
|
14,754 |
|
21.8% |
|
Agriculture |
|
5,369 |
|
4,168 |
|
28.8% |
|
3,572 |
|
3,081 |
|
15.9% |
|
Construction |
|
983 |
|
844 |
|
16.5% |
|
21,541 |
|
17,835 |
|
20.8% |
|
Total Industrial
Activities of Continuing Operations |
|
6,352 |
|
5,012 |
|
26.7 |
|
1,982 |
|
1,664 |
|
19.1% |
|
Financial Services |
|
571 |
|
476 |
|
20.0% |
|
(50) |
|
(25) |
|
n.m. |
|
Eliminations and other |
|
(17) |
|
(6) |
|
n.m. |
|
23,473 |
|
19,474 |
|
20.5% |
|
Total of Continuing
Operations |
|
6,906 |
|
5,482 |
|
26.0% |
|
Adjusted EBIT of Industrial
Activities(1)
by Segment under EU-IFRS |
| |
|
Three Months ended
December
31, |
| |
|
2022 |
|
2021 |
|
$ Change |
|
2022 adjusted EBIT margin |
|
2021 adjusted EBIT margin |
| Agriculture |
|
716 |
|
425 |
|
291 |
|
13.3% |
|
10.2% |
| Construction |
|
38 |
|
19 |
|
19 |
|
3.9% |
|
2.3% |
| Unallocated items,
eliminations and other |
|
(49) |
|
(57) |
|
8 |
|
— |
|
— |
| Adjusted EBIT of
Industrial Activities of Continuing Operations |
|
705 |
|
387 |
|
318 |
|
11.1% |
|
7.7% |
(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.
|
Adjusted EBIT of Industrial
Activities(1)
by Segment under EU-IFRS |
|
|
|
Year ended
December
31, |
| |
|
2022 |
|
2021 |
|
$ Change |
|
2022 adjusted EBIT margin |
|
2021 adjusted EBIT margin |
| Agriculture |
|
2,460 |
|
1,794 |
|
666 |
|
13.7% |
|
12.2% |
| Construction |
|
119 |
|
83 |
|
36 |
|
3.3% |
|
2.7% |
| Unallocated items,
eliminations and other |
|
(143) |
|
(148) |
|
5 |
|
— |
|
— |
| Adjusted EBIT of
Industrial Activities of Continuing Operations |
|
2,436 |
|
1,729 |
|
707 |
|
11.3% |
|
9.7% |
(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.
Other Supplemental Financial
Information (Unaudited)
|
Other key data under EU-IFRS |
| |
December
31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
| Total Assets |
40,075 |
36,579 |
36,403 |
37,272 |
| Total Equity |
7,559 |
6,965 |
6,428 |
6,258 |
| Equity attributable to CNH
Industrial N.V. |
7,559 |
6,962 |
6,421 |
6,251 |
| Net Cash (Debt) of CNH
Industrial |
(17,940) |
(17,392) |
(17,422) |
(17,454) |
| of which Net Cash (Debt) of
Industrial Activities(1) |
114 |
(1,571) |
(1,892) |
(2,452) |
| Net Income of Financial
Services |
319 |
240 |
159 |
73 |
(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.
|
Net income (loss) reconciliation
US-GAAP to EU-IFRS |
|
Year ended
December
31, |
|
|
|
Three Months ended
December
31, |
|
2022 |
|
2021 |
|
($ million) |
|
2022 |
|
2021 |
|
2,039 |
|
1,801 |
|
Net income (loss) in accordance with U.S.
GAAP |
|
592 |
|
464 |
|
|
|
|
|
Adjustments to conform with
EU-IFRS: |
|
|
|
|
|
(8) |
|
(31) |
|
Development costs |
|
15 |
|
3 |
|
(143) |
|
(77) |
|
Other
adjustments(1) |
|
(6) |
|
27 |
|
(11) |
|
(7) |
|
Tax impact on adjustments and
other income tax differences |
|
(31) |
|
(37) |
|
(162) |
|
(115) |
|
Total
adjustments |
|
(22) |
|
(7) |
|
1,877 |
|
1,686 |
|
Profit (loss) in
accordance with EU-IFRS |
|
570 |
|
457 |
(1) This item also includes the different accounting
impacts from the modifications of a healthcare plan in the U.S.
|
Total Equity reconciliation US-GAAP to
EU-IFRS |
| |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 30, 2022 |
|
Total Equity under U.S. GAAP |
6,927 |
6,357 |
5,794 |
5,609 |
| Adjustments to conform
with EU-IFRS: |
|
|
|
|
|
Development costs |
763 |
719 |
751 |
783 |
|
Other adjustments |
39 |
59 |
45 |
41 |
|
Tax impact on adjustments and other income tax differences |
(170) |
(170) |
(162) |
(175) |
| Total
adjustments |
632 |
608 |
634 |
649 |
| Total Equity under
EU-IFRS |
7,559 |
6,965 |
6,428 |
6,258 |
Other Supplemental Financial Information
(Unaudited)
|
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: |
| |
|
|
|
|
|
|
| |
|
Average 2022 |
|
At December 31, 2022 |
|
|
|
Average 2021 |
|
At December 31, 2021 |
| Euro |
|
0.950 |
|
0.938 |
|
|
|
0.845 |
|
0.883 |
| Pound sterling |
|
0.810 |
|
0.832 |
|
|
|
0.727 |
|
0;742 |
| Swiss franc |
|
0.954 |
|
0.923 |
|
|
|
0.914 |
|
0.912 |
| Polish zloty |
|
4.451 |
|
4.397 |
|
|
|
3.860 |
|
4.059 |
| Brazilian real |
|
5.165 |
|
5.220 |
|
|
|
5.392 |
|
5.571 |
| Canadian dollar |
|
1.301 |
|
1.354 |
|
|
|
1.254 |
|
1.271 |
| Turkish lira |
|
16.531 |
|
18.707 |
|
|
|
8.888 |
|
13.450 |
|
Condensed Consolidated Income Statement for the three
months and Years ended
December
31,
2022 and 2021 |
|
(Unaudited, EU-IFRS) |
|
Three Months Ended
December
31, |
|
Years Ended
December
31, |
| ($ million) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Net revenues |
|
6,906 |
|
5,482 |
|
23,473 |
|
19,474 |
| Cost of sales |
|
5,400 |
|
4,393 |
|
18,167 |
|
15,231 |
| Selling, general and
administrative costs |
|
498 |
|
419 |
|
1,678 |
|
1,425 |
| Research and development
costs |
|
244 |
|
187 |
|
881 |
|
677 |
| Result from investments: |
|
|
|
|
|
|
|
|
| Share of the profit/(loss) of
investees accounted for using the equity method |
|
36 |
|
23 |
|
108 |
|
92 |
| Restructuring costs |
|
15 |
|
12 |
|
34 |
|
36 |
| Other income/(expenses) |
|
54 |
|
(78) |
|
(9) |
|
(124) |
| Financial
income/(expenses) |
|
(70) |
|
(40) |
|
(177) |
|
(151) |
| PROFIT/(LOSS) BEFORE
TAXES |
|
769 |
|
376 |
|
2,635 |
|
1,922 |
| Income tax (expense)
benefit |
|
(199) |
|
81 |
|
(758) |
|
(236) |
| PROFIT/(LOSS) FROM CONTINUING
OPERATIONS |
|
570 |
|
457 |
|
1,877 |
|
1,686 |
| PROFIT/(LOSS) FROM
DISCONTINUED OPERATIONS, NET OF TAX |
|
— |
|
(109) |
|
— |
|
91 |
| PROFIT/(LOSS) FOR THE
PERIOD |
|
570 |
|
348 |
|
1,877 |
|
1,777 |
| |
|
|
|
|
|
|
|
|
| PROFIT/(LOSS) FOR THE PERIOD
FROM CONTINUING OPERATIONS ATTRIBUTABLE TO: |
|
|
|
|
|
|
|
|
| Owners of the parent |
|
570 |
|
455 |
|
1,867 |
|
1,677 |
| Non-controlling interests |
|
— |
|
2 |
|
10 |
|
9 |
| |
|
|
|
|
|
|
|
|
| (in $) |
|
|
|
|
|
|
|
|
| BASIC EARNINGS/(LOSS)
PER COMMON SHARE |
|
0.42 |
|
0.25 |
|
1.38 |
|
1.28 |
| Basic earnings/(loss) per
common share from continuing operations |
|
0.42 |
|
0.34 |
|
1.38 |
|
1.24 |
| DILUTED
EARNINGS/(LOSS) PER COMMON SHARE |
|
0.42 |
|
0.25 |
|
1.37 |
|
1.28 |
| Diluted earnings/(loss) per
common share from continuing operations |
|
0.42 |
|
0.33 |
|
1.37 |
|
1.23 |
Other Supplemental Financial
Information
(Unaudited)
|
Condensed Consolidated Statement of Financial Position as
of December
31,
2022 and December 31, 2021 |
| (Unaudited,
EU-IFRS) |
|
|
|
|
| ($ million) |
|
December
31, 2022 |
|
December 31, 2021 |
| ASSETS |
|
|
|
|
| Intangible assets |
|
5,172 |
|
5,159 |
| Property, plant and equipment
and Leased assets |
|
3,281 |
|
3,435 |
| Inventories |
|
4,848 |
|
4,228 |
| Receivables from financing
activities |
|
19,611 |
|
15,443 |
| Cash and cash equivalents |
|
5,129 |
|
5,845 |
| Other receivables and
assets |
|
2,034 |
|
2,535 |
| Assets held for
distribution(*) |
|
— |
|
14,477 |
| TOTAL
ASSETS |
|
40,075 |
|
51,122 |
| EQUITY AND LIABILITIES |
|
|
|
|
| Issued capital and reserves
attributable to owners of the parent |
|
7,559 |
|
8,393 |
| Non-controlling interests |
|
— |
|
33 |
| Total Equity |
|
7,559 |
|
8,426 |
| Debt |
|
23,652 |
|
21,689 |
| Other payables and
liabilities |
|
8,864 |
|
9,148 |
| Liabilities held for
distribution(*) |
|
— |
|
11,859 |
| Total Liabilities |
|
32,516 |
|
42,696 |
| TOTAL EQUITY AND
LIABILITIES |
|
40,075 |
|
51,122 |
(*) The 2021 data have
been re-presented following the classification of the Iveco Group
Business as Discontinued Operations for the year ended December 31,
2021, as requested by the IFRS 5 - Non-current assets held for sale
and discontinued operations.
|
Condensed Consolidated Statement of Cash Flows for
the years ended
December
31,
2022 and 2021 |
|
(Unaudited, EU-IFRS) |
|
|
|
|
| ($ million) |
|
December
31, 2022 |
|
December
31, 2021 |
| CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE YEAR |
|
5,845 |
|
9,629 |
| Profit/(loss) from Continuing
Operations |
|
1,877 |
|
1,686 |
| Adjustment to reconcile
profit/(loss) from Continuing Operation to cash flows from/(used
in) operating activities from Continuing Operations |
|
627 |
|
989 |
| CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
|
2,504 |
|
2,675 |
| CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
638 |
| TOTAL |
|
2,504 |
|
3,313 |
| CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS |
|
(5,255) |
|
(4,001) |
| CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
(121) |
| TOTAL |
|
(5,255) |
|
(4,122) |
| CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS |
|
2,268 |
|
(1,447) |
| CASH FLOWS FROM/(USED IN)
FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS |
|
— |
|
(104) |
| TOTAL |
|
2,268 |
|
(1,551) |
| Translation exchange
differences |
|
(233) |
|
(407) |
| TOTAL CHANGE IN CASH
AND CASH EQUIVALENTS |
|
(716) |
|
(2,767) |
| Less: |
|
|
|
|
| CASH AND EQUIVALENTS AT END OF
THE PERIOD – INCLUDED WITHIN ASSETS HELD FOR DISTRIBUTION AT THE
END OF THE PERIOD |
|
— |
|
(1,017) |
| CASH AND CASH
EQUIVALENTS AT END OF THE PERIOD |
|
5,129 |
|
5,845 |
CNH Industrial NV (BIT:CNHI)
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