Highlights

CNH INDUSTRIAL SECOND QUARTER REVENUES OF $8.9 BILLION, NET INCOME OF $358 MILLION

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

  • Second quarter revenues totaled $8.9 billion ($8.8 billion in Q2 2013). Net sales of Industrial Activities at $8.6 billion ($8.5 billion in Q2 2013).
  • Operating profit of Industrial Activities for the quarter was $678 million, down 1.2% compared to Q2 2013, with operating margin at 7.9% (down 0.1 p.p.).
  • Net income was $358 million in Q2 2014, or $0.26 per share. Net income before restructuring and other exceptional items was $382 million, or $0.28 per share, up $14 million compared to Q2 2013.
  • Net industrial debt was $3.7 billion at June 30, 2014 ($4.0 billion at March 31, 2014). Available liquidity totaled $7.7 billion ($8.1 billion at March 31, 2014), after the issuance of a July 2019 $500 million bond.
  • Full year guidance confirmed.

(*) 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 the 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 the 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 ($ million)

1st Half   2nd Quarter
2014  2013  Change    2014 2013Change
16,451  16,380 0.4%Revenues   8,911 8,829   0.9%  
459 499 -40Net income  358 348 10 
559  553 6Net income before restructuring and other exceptional items   382 368 14 
454  394 60Net income attributable to CNH Industrial N.V.   354 283 71 
0.33  0.32 0.01Basic EPS ($)   0.26 0.23  0.03  
0.41  0.37 0.04Basic EPS before restructuring and other exceptional items ($)   0.28 0.25  0.03  
0.33  0.32 0.01Diluted EPS ($)   0.26 0.23  0.03  

CNH INDUSTRIAL Income Statement Data of Industrial Activities(1) ($ million)

  1st Half   2nd Quarter
 2014  2013 Change   20142013Change
 15,777 15,793 -0.1% Net sales of Industrial Activities  8,564 8,536  0.3% 
 1,090 1,107  -17  Operating profit of Industrial Activities (2) 678 686 -8
 6.9 7.0 -0.1 p.p. Operating margin of Industrial Activities (%) 7.9 8.0  -0.1 p.p