Highlights

CNH INDUSTRIAL THIRD QUARTER REVENUES OF $7.7 BILLION, NET INCOME OF $162 MILLION

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

  • Third quarter revenues totaled $7.7 billion ($8.2 billion in Q3 2013). Net sales of Industrial Activities were $7.4 billion in Q3 2014 ($7.9 billion in Q3 2013).
  • Operating profit of Industrial Activities for the quarter was $522 million, down 12.9% compared to Q3 2013, with operating margin at 7.1% (down 0.5 p.p.).
  • Net income was $162 million in Q3 2014, or $0.13 per share. Net income before restructuring and other exceptional items was $214 million (or $0.16 per share), down $63 million compared to Q3 2013.
  • Net industrial debt was $3.9 billion at September 30, 2014 ($3.7 billion at June 30, 2014). Available liquidity totaled $7.9 billion ($7.7 billion at June 30, 2014), after the issuance of a €700 million bond ($881 million) due September 2021.
  • 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)

YTD (01.01 to 09.30) 3rd Quarter
20142013Change 20142013Change
24,19024,546-1.5%Revenues7,7398,166-5.2%
621774-153Net income162275-113
773830-57Net income before restructuring and other exceptional items214277-63
62761710Net income attributable to CNH Industrial N.V.173223-50
0.460.50-0.04Basic EPS ($)0.130.18-0.05
0.570.550.02Basic EPS before restructuring and other exceptional items ($)0.160.18-0.02
0.460.50-0.04Diluted EPS ($)0.130.18-0.05

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

YTD (01.01 to 09.30) 3rd Quarter
20142013Change 20142013Change
23,18023,665-2.0%Net sales of Industrial Activities7,4037,872-6.0%
1,6121,706-94Operating profit of Industrial Activities (2)522599-77
7.07.2-0.2 p.p.Operating margin of Industrial Activities (%)7.17.6-0.5 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 a non-GAAP measure and is defined as net sales less cost of goods sold, selling, general and administrative expenses, and research and development expenses.