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1ST HALF: CNH'S SALES EVEN, NET INCOME UP 15%
Source: CNH Industrial news release

To read the entire report click here.

Highlights:

*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.

CNH Industrial N.V. (NYSE:CNHI / MI:CNHI) today announced consolidated revenues of $8,911 million for the second quarter of 2014, up 0.9% compared to Q2 2013.

Net sales of Industrial Activities were $8,564 million in Q2 2014, marginally up on the prior year. Net sales increased in Powertrain, offsetting declines in Agricultural Equipment (primarily in LATAM and in NAFTA) and slight decreases in Construction Equipment and Commercial Vehicles.

Net sales for Agricultural Equipment were $4,436 million for the quarter, down 2.3% from Q2 2013, driven by
lower volumes, primarily in LATAM and NAFTA, as well as less favorable product mix, partially offset by net
pricing. The geographic distribution of net sales for the period was 43% NAFTA, 37% EMEA, 10% LATAM and
10% APAC.

Ag Equipment

Worldwide agricultural equipment industry unit sales were down during the second quarter of 2014, with global demand for tractors and combines down approximately 12%.

In NAFTA, tractor demand was up 1%, with the under 40 hp segment up 4% and the over 40 hp segment down 2%, while combines were down 20%.

In EMEA, tractor and combine markets were down 7% and 9%, respectively. LATAM tractor and combine markets decreased 12% and 30%, respectively.

In APAC, demand decreased 16% for tractors and was flat for combines.

Market share performance was mainly flat for tractors, except for LATAM where there was a slight decrease.

Combines market share decreased in all markets except for NAFTA, where it was flat.

Production of Agricultural Equipment was 6% above retail sales for the quarter, to support normal seasonality and in anticipation of the facilities summer shutdown schedules.

The Company expects to under-produce retail demand in the second half of the year.

Agricultural Equipment operating profit was $632 million for the quarter ($646 million in Q2 2013). Operating margin remained at 14.2%, with negative volume and mix (primarily large horsepower tractors and combines in NAFTA) being offset by pricing and cost control actions to recover Tier 4B related content costs, inflation and adverse foreign exchange movements.


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