Highlights

CNH INDUSTRIAL FIRST QUARTER REVENUES OF $7.5 BILLION, NET INCOME OF $101 MILLION

FINANCIAL RESULTS UNDER U.S. GAAP(*) (**)

  • First quarter revenues totaled $7.5 billion, in line with Q1 2013. Net sales of Industrial Activities at $7.2 billion decreased 0.6% vs Q1 2013 (+1.3% on a constant currency basis).
  • Operating profit of Industrial Activities for the quarter was $412 million, down 2.1% against Q1 2013, with operating margin at 5.7%.
  • Net income was $101 million, or $0.07 per share. Net income before restructuring and other exceptional items was $177 million, or $0.13 per share, down $8 million against Q1 2013.
  • Net industrial debt was $4.0 billion at March 31, 2014 ($2.2 billion at December 31, 2013). Available liquidity totaled $8.1 billion ($8.7 billion at December 31, 2013), after the issuance of a €1 billion bond, due March 2019, with an annual fixed rate of 2.75%.
  • CNH Industrial is releasing today its 2014-2018 Business Plan.

(*) Beginning with the filing with the U.S. Securities and Exchange Commission (“SEC”) of its annual report on Form 20-F for the fiscal year ended December 31, 2013, prepared in accordance with U.S. GAAP, CNH Industrial reports quarterly and annual financial results both under U.S. GAAP for SEC reporting purposes and under IFRS for European listing purposes and Dutch law requirements. Financial statements under both sets of accounting principles use U.S. dollar as the reporting currency. In addition, as disclosed in the Form 20-F, CNH Industrial has expanded its reportable segments from three (Agricultural and Construction Equipment inclusive of its financial services activities, Trucks and Commercial Vehicles inclusive of its financial services activities, and Powertrain) to five (Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain and Financial Services). The following tables and comments on the financial results of the Company and by segments are prepared in accordance with U.S. GAAP. Financial results under IFRS are shown in a subsequent section of this press release; prior period results under IFRS, prepared in euro, have been consistently recast into U.S. dollars. A summary outlining the Company’s transition to U.S. GAAP and U.S. dollar as the reporting currency is available on the Company’s website, www.cnhindustrial.com.

(**) Refer to the Non-GAAP Financial Information section of this press release for information regarding Non-GAAP financial measures.

Summary Income Statement - 1st Quarter

($ million)20142013Change
Revenues7,5407,551-0.10%
Net income101151-50
Net income before restructuring and other exceptional items177185-8
Net income attributable to CNH Industrial N.V.100111-11
Basic EPS ($)0.070.09-0.02
Basic EPS before restructuring and other exceptional items ($)0.130.120.01
Diluted EPS ($)0.070.09-0.02

Income Statement Data of Industrial Activities(1) - 1st Quarter

($ million)20142013Change
Net sales of Industrial Activities7,2137,257-0.60%
Operating profit of Industrial Activities (2)412421-9
Operating margin of Industrial Activities (%)5.75.8-0.1 p.p.

(1) Industrial Activities represent the activities carried out by the four industrial segments Agricultural Equipment, Construction Equipment, Commercial Vehicles, and Powertrain, as well as corporate functions.

(2) 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.