CNH INDUSTRIAL N.V. LONDON, Jan. 29, 2016 /PRNewswire/ --
Financial results under U.S. GAAP((*) (**))
-- Revenues totaled $7.1 billion for the fourth quarter and $25.9 billion
for the full year 2015. Net sales of Industrial Activities were $6.9
billion for the quarter and $24.7 billion for the year.
-- Operating profit of Industrial Activities was $563 million for the
quarter, an increase of 50%, at an operating margin at 8.2%, up 3.5 p.p.
compared to the same period in 2014. For the full year, operating profit
of Industrial Activities was $1,432 million, with operating margin at
5.8%.
-- Net income was $231 million ($0.17 per share) for the quarter and $248
million ($0.19 per share) for the full year. Net income before
restructuring and other exceptional items was $262 million ($0.19 per
share) for the quarter and $474 million ($0.35 per share) for the full
year.
-- Net industrial debt was $1.6 billion at December 31, 2015, a decrease of
$1.1 billion or 40% from December 31, 2014. Available liquidity totaled
$9.3 billion ($8.9 billion at December 31, 2014).
-- The Board of Directors is recommending for 2015 a dividend of EUR0.13
per common share, or approximately $200 million (EUR177 million).
-- The Board of Directors announces a buy-back of Company's common shares
of up to $300 million.
-- For 2016 CNH Industrial expects net sales of Industrial Activities
between $23 billion and $24 billion, with operating margin of Industrial
Activities between 5.2% and 5.8%. Net industrial debt expected between
$1.5 billion and $1.8 billion.
(*) CNH Industrial reports quarterly
and annual consolidated
financial results under U.S.
GAAP and IFRS. The following
tables and discussion related
to the financial results of the
Company and its segments are
prepared in accordance with
U.S. GAAP. Financial results
under IFRS are shown in
specific tables at the end of
this press release.
(**) Refer to the Non-GAAP Financial
Information section of this
press release for information
regarding Non-GAAP financial
measures.
CNH INDUSTRIAL
Summary Income Statement ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
25,912 32,555 -20.4% Revenues 7,144 8,365 -14.6%
------ ------ ----- -------- ----- ----- -----
248 708 -460 Net income 231 87 144
--- --- ---- ---------- --- --- ---
474 940 -466 Net income before restructuring
and other exceptional items (1) 262 167 95
--- --- ---- -------------------------------- --- --- ---
253 710 -457 Net income attributable to CNH
Industrial N.V. 231 83 148
--- --- ---- ------------------------------- --- --- ---
0.19 0.52 -0.33 Basic EPS ($) 0.17 0.06 0.11
---- ---- ----- ------------ ---- ---- ----
0.19 0.52 -0.33 Diluted EPS ($) 0.17 0.06 0.11
---- ---- ----- -------------- ---- ---- ----
0.35 0.69 -0.34 Basic EPS before restructuring
and other exceptional items (1)
($) 0.19 0.12 0.07
---- ---- ----- ------------------------------- ---- ---- ----
(1) This is a non-GAAP measure. Refers to the non-GAAP Financial
Information section of this press release for information regarding
non-GAAP financial measures.
--------------------------------------------------------------------
CNH INDUSTRIAL
Income Statement Data of Industrial Activities(1) ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
24,677 31,198 -20.9% Net sales of Industrial
Activities 6,869 8,018 -14.3%
------ ------ ----- ------------------------ ----- ----- -----
1,432 1,988 -556 Operating profit of
Industrial Activities (2) 563 376 187
----- ----- ---- -------------------------- --- --- ---
5.8 6.4 -0.6 p.p. Operating margin of
Industrial Activities (%) 8.2 4.7 3.5 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.
--------------------------------------------------------------
CNH Industrial N.V. (NYSE:CNHI / MI:CNHI) today announced consolidated revenues of $7,144 million for the fourth quarter 2015, down 4.1% compared to Q4 2014 on a constant currency basis (down 14.6% on a reported basis). Net sales of Industrial Activities were $6,869 million in Q4 2015, down 3.6% compared to Q4 2014 on a constant currency basis (down 14.3% on a reported basis). The full year 2015 consolidated revenues were $25,912 million, down 9.2% compared to 2014 on a constant currency basis (down 20.4% on a reported basis). Net sales of Industrial Activities were $24,677 million in 2015, down 9.6% compared to 2014 on a constant currency basis (down 20.9% on a reported basis). Net sales of Commercial Vehicles increased 4.8% excluding the negative impact of currency translation, due to increased demand and market share gains in the EMEA region. Net sales of Agricultural Equipment declined 19.6% excluding the negative impact of currency translation, driven by lower industry volumes in the NAFTA and LATAM row crop sectors offset by positive net price realization. Net sales also decreased in Construction Equipment, due primarily to negative industry volumes in LATAM, and in Powertrain, due to lower volume to captive customers.
CNH INDUSTRIAL
Revenues by Segment ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 % change 2015 2014 % change
---- ---- -------- ---- ---- --------
11,025 15,204 -27.5 Agricultural
Equipment 2,982 3,403 -12.4
------ ------ ----- ----- -----
2,542 3,346 -24.0 Construction
Equipment 609 800 -23.9
----- ----- ----- --- -----
9,542 10,888 -12.4 Commercial
Vehicles 2,846 3,354 -15.1
----- ------ ----- ----- -----
3,560 4,464 -20.3 Powertrain 912 988 -7.7
----- ----- ----- ---------- --- --- ----
(1,992) (2,704) - Eliminations
and other (480) (527) -
------ ------ --- ------------- ---- ---- ---
24,677 31,198 -20.9 Total
Industrial
Activities 6,869 8,018 -14.3
------ ------ ----- ----------- ----- ----- -----
1,603 1,828 -12.3 Financial
Services 377 465 -18.9
----- ----- ----- ---------- --- --- -----
(368) (471) - Eliminations
and other (102) (118) -
---- ---- --- ------------- ---- ---- ---
25,912 32,555 -20.4 Total 7,144 8,365 -14.6
------ ------ ----- ----- ----- ----- -----
Operating profit of Industrial Activities was $563 million for the fourth quarter, a $187 million increase compared to the same period in 2014, with an operating margin of 8.2%, up 3.5 p.p. compared to Q4 2014. Operating profit for the quarter increased in Agricultural Equipment and in Construction Equipment, driven by net price realization, structural cost reductions and favorable material costs. Commercial Vehicles' operating profit improved due to favorable pricing in all regions and manufacturing efficiencies in EMEA. Net of the impact of currency translation, Powertrain's operating profit increased as a result of positive product mix and selling, general and administrative ("SG&A") expense reductions. For the full year 2015, operating profit of Industrial Activities totaled $1,432 million, a $556 million decrease compared to 2014, with an operating margin for the year at 5.8%. Excluding the negative impact of foreign exchange translation, Commercial Vehicles' operating profit improved due to increased volume in EMEA, positive pricing, manufacturing efficiencies and a reduction in SG&A expenses as a result of the Company's Efficiency Program. Construction Equipment's operating profit increased as net price realization and cost containment actions more than offset the negative impact of lower volumes in LATAM. Operating profit declined in Agricultural Equipment, driven primarily by reduced industry volume in the NAFTA and LATAM row crop sectors and by foreign exchange translation impact, partially offset by net price realization, material and structural cost reductions. Powertrain's operating profit decreased mainly as a result of lower agricultural equipment demand and foreign exchange translation.
CNH INDUSTRIAL
Operating profit/(loss) by Segment (1) ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
952 1,770 -818 Agricultural
Equipment 348 241 107
--- ----- ---- --- ---
90 79 11 Construction
Equipment 18 9 9
--- --- --- --- ---
283 29 254 Commercial
Vehicles 155 100 55
--- --- --- --- ---
186 223 -37 Powertrain 62 66 -4
--- --- --- ---------- --- --- ---
(79) (113) 34 Eliminations
and other (20) (40) 20
--- ---- --- ------------- --- --- ---
1,432 1,988 -556 Total
Industrial
Activities 563 376 187
----- ----- ---- ----------- --- --- ---
515 554 -39 Financial
Services 118 147 -29
--- --- --- ---------- --- --- ---
(312) (343) 31 Eliminations
and other (85) (88) 3
---- ---- --- ------------- --- --- ---
1,635 2,199 -564 Total 596 435 161
----- ----- ---- ----- --- --- ---
(1) Operating profit of Industrial Activities (a non-
GAAP measure) is defined as net sales less cost of goods sold,
selling, general and administrative expenses, and research and
development expenses. Operating profit of Financial Services
(a non-GAAP measure) is defined as revenues less selling,
general and administrative expenses, interest expense and
certain other operating expenses.
--------------------------------------------------------------
CNH INDUSTRIAL
Reconciliation of Operating Profit to Net Income ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 2015 2014
---- ---- ---- ----
1,635 2,199 Total Operating Profit 596 435
----- ---
84 184 Restructuring expenses 32 86
--- ---
479 613 Interest expenses of Industrial
Activities, net of interest income and
eliminations 138 164
--- ---
(505) (313) Other, net (102) (59)
---- ----
567 1,089 Income before income taxes and equity in
income of unconsolidated subsidiaries and
affiliates 324 126
--- ---
360 467 Income taxes 101 59
--- --- ------------ --- ---
41 86 Equity in income of unconsolidated
subsidiaries and affiliates 8 20
--- --- ----------------------------------- --- ---
248 708 Net income 231 87
--- --- ---------- --- ---
Restructuring expenses totaled $32 million in the quarter, $54 million lower than Q4 2014. In 2015, restructuring expenses were $84 million, $100 million lower than 2014, due to actions included in the Company's Efficiency Program launched in 2014.
Interest expense, net totaled $138 million in the fourth quarter, a decrease of $26 million or 16% compared to the same period in 2014. In 2015, interest expense, net was $479 million, a reduction of $134 million or 22% compared to 2014 as a result of reduced average indebtedness.
Other, net was a charge of $102 million for the fourth quarter 2015 (charge of $59 million for Q4 2014), an increase of $43 million compared to the same period in 2014 mainly due to higher foreign exchange losses. In 2015, other, net was a charge of $505 million (charge of $313 million for 2014). The increase of $192 million was mainly the result of the third quarter exceptional pre-tax charge of $150 million related to the re-measurement of the net monetary assets of the Venezuelan operations.
Income taxes were $101 million in the fourth quarter 2015, representing an effective tax rate of 31.2%. In 2015, income taxes totaled $360 million, representing an effective tax rate of 63.5%. Excluding the impact of the exceptional pre-tax charge relating to the re-measurement of the Venezuelan operations, and the impact of the inability to record deferred tax assets on losses in certain jurisdictions, primarily Brazil, the effective tax rate for 2015 was 37%. The long-term effective tax rate target of between 34% to 36% range remains unchanged.
Equity in income of unconsolidated subsidiaries and affiliates totaled $8 million for Q4 2015. Full year equity in income was $41 million. The decrease compared to 2014 was mainly due to lower results of joint ventures in the APAC region, including the negative impact of foreign currency differences.
Net income of Financial Services was $91 million for Q4 2015, lower by $7 million due to reduced net interest margin and the negative impact of currency translation, partially offset by lower income taxes. For the full year 2015, Financial Services' net income was $368 million, an increase of $4 million, due to lower provisions for credit losses, lower SG&A expenses and reduced income taxes, partially offset by the negative impact of currency translation.
Net income attributable to CNH Industrial N.V. was $231 million for the quarter, or $0.17 per share. Net income before restructuring and other exceptional items was $262 million for the quarter, or $0.19 per share. Net income attributable to CNH Industrial N.V. was $253 million for 2015, or $0.19 per share. Net income before restructuring and other exceptional items was $474 million for 2015, or $0.35 per share.
Net industrial debt of $1.6 billion at December 31, 2015 was $1.8 billion lower than at September 30, 2015 and $1.1 billion lower than at December 31, 2014. Net industrial cash flow was a net inflow of $1.8 billion in the fourth quarter and $0.8 billion in the year, as a result of reductions in working capital.
Available liquidity at December 31, 2015 was $9.3 billion, inclusive of $3.0 billion in undrawn committed facilities, compared to $8.9 billion at December 31, 2014.
Agricultural Equipment
AGRICULTURAL EQUIPMENT
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
11,025 15,204 -27.5% Net sales 2,982 3,403 -12.4%
------ ------ ----- --------- ----- ----- -----
952 1,770 -818 Operating profit 348 241 107
--- ----- ---- ---------------- --- --- ---
8.6 11.6 -3.0 p.p. Operating margin
(%) 11.7 7.1 4.6 p.p.
--- ---- --------- ---------------- ---- --- --------
Agricultural Equipment's net sales totaled $2,982 million for the fourth quarter 2015, a decrease of 3.8% compared to the same period in 2014 on a constant currency basis (down 12.4% on a reported basis), due to lower industry volumes, partially offset by positive net pricing. In the full year 2015, Agricultural Equipment's net sales were $11,025 million, down 19.6% compared to 2014 on a constant currency basis (down 27.5% on a reported basis), driven by declining industry volumes in the NAFTA and LATAM row crop sectors.
Operating profit was $348 million for the fourth quarter, a $107 million increase compared to Q4 2014, with an operating margin of 11.7%, up 4.6 p.p. over the same period in 2014 and the highest in the OEM space. The increase was due to net price realization, structural cost reductions and favorable material costs, partially offset by reduced industry volume in the row crop sector and negative foreign exchange translation. In the full year 2015, Agricultural Equipment's operating profit was $952 million, with an operating margin of 8.6%.
For the full year 2015, worldwide agricultural equipment industry unit sales were down compared to 2014, with global demand for tractors and combines down 8% and 19%, respectively. The NAFTA row crop sector was down, with tractors over 140 horsepower down 31% and combines down 28%. The NAFTA tractor under 40 hp segment was up 6%, while the 40-140 hp segment was down 3%. EMEA markets were down 7% for tractors and 7% for combines. LATAM tractor sales decreased 27%, and combine sales decreased 39%. APAC markets decreased 9% for tractors and 4% for combines.
For 2015, Agricultural Equipment's worldwide market share performance was flat to the prior year for both tractors and combines.
Construction Equipment
CONSTRUCTION EQUIPMENT
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
2,542 3,346 -24.0% Net sales 609 800 -23.9%
----- ----- ----- --------- --- --- -----
90 79 11 Operating profit 18 9 9
--- --- --- ---------------- --- --- ---
3.5 2.4 1.1 p.p. Operating margin (%) 3.0 1.1 1.9 p.p.
--- --- -------- -------------------- --- --- --------
Construction Equipment's net sales totaled $609 million for the fourth quarter 2015, a decrease of 18.7% compared to the same period in 2014 on a constant currency basis (down 23.9% on a reported basis), with demand weakness in NAFTA and LATAM markets. In the full year 2015, Construction Equipment's net sales were $2,542 million, down 18.3% compared to 2014 on a constant currency basis (down 24.0% on a reported basis), due to reduced industry demand, primarily in LATAM and APAC.
Operating profit was $18 million for the fourth quarter 2015, with an operating margin of 3.0%, up 1.9 p.p. over the same period in 2014. The increase was a result of positive net price realization, and structural cost containment actions. In the full year 2015, Construction Equipment reported operating profit of $90 million, a 14% increase compared to 2014. Operating margin increased 1.1 p.p. to 3.5%, as net price realization and structural cost containment actions, more than offset the negative impact from lower volumes in LATAM and APAC.
In 2015, worldwide construction equipment industry units for heavy and light products were down 18% and 4%, respectively, compared to 2014. Decreased industry volumes in LATAM and APAC were partially offset by moderate growth in NAFTA. Demand for heavy and light construction equipment was flat in EMEA.
Construction Equipment's worldwide market share was flat overall year over year, with a decrease in LATAM and NAFTA, offset by an increase in market share in APAC and EMEA.
Commercial Vehicles
COMMERCIAL VEHICLES
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
9,542 10,888 -12.4% Net sales 2,846 3,354 -15.1%
----- ------ ----- --------- ----- ----- -----
283 29 254 Operating profit 155 100 55
--- --- --- ---------------- --- --- ---
3.0 0.3 2.7 p.p. Operating margin
(%) 5.4 3.0 2.4 p.p.
--- --- -------- ---------------- --- --- --------
Commercial Vehicles' net sales totaled $2,846 million for the fourth quarter 2015, a decrease of 1.2% compared to the same period in 2014 on a constant currency basis (down 15.1% on a reported basis). EMEA net sales increased, excluding the impact of currency translation, driven by higher industry volumes and market share increases. In LATAM, net sales decreased due to the decline of the Brazilian market, partially offset by increased deliveries in Argentina. In the full year 2015, Commercial Vehicles' net sales were $9,542 million, an increase of 4.8% compared to 2014 on a constant currency basis (down 12.4% on a reported basis) as a result of increased deliveries in EMEA. Excluding the impact of currency translation, EMEA net sales increased, driven by higher volumes, increases in market share and favorable pricing. In LATAM, net sales decreased mainly due to declining volume in the Brazilian market.
Operating profit was $155 million for the fourth quarter 2015, a 55% increase compared to Q4 2014, with an operating margin of 5.4%, up 2.4 p.p. over the same period in 2014. Favorable pricing in all regions, EMEA manufacturing efficiencies and material cost reductions drove the increase in profitability. In the full year 2015, Commercial Vehicles reported an operating profit of $283 million, a $254 million increase compared to 2014, with an operating margin of 3.0% (up 2.7 p.p. over 2014), due to higher volumes in EMEA, positive pricing, manufacturing efficiencies and SG&A expense reduction as a result of the Company's Efficiency Program. In LATAM, positive pricing, as well as manufacturing and SG&A cost containment actions, offset a large portion of the lower volumes in Brazil.
In 2015, the European truck market (GVW >=3.5 tons) grew by 16% compared to 2014. The light vehicles market (GVW 3.5-6.0 tons) increased 16%, while the medium vehicles market (GVW 6.1-15.9 tons) and the heavy vehicles market (GVW >=16 tons) grew by 5% and 19%, respectively. In LATAM, new truck registrations (GVW >=3.5 tons) declined 40% compared to 2014, with a decrease of 47% in Brazil and 42% in Venezuela, while Argentina increased 5%. In APAC, new truck registrations decreased 10% compared with 2014.
The Company's estimated market share in the European truck market (GVW >=3.5 tons) was 11.3%, up 0.4 p.p. year over year. In the light segment, the share increased by 0.6 p.p. to 11.3%, the Company's market share increased by 1.4 p.p. to 30.6% in the medium segment and 0.3 p.p. to 7.9% in the heavy segment.
In LATAM, in 2015, the Company's market share increased 2.4 p.p. to 12.4%.
During 2015, Commercial Vehicles delivered approximately 140,200 vehicles (including buses and specialty vehicles), representing a 9% increase from 2014. Volumes were higher in the light segment (up 13%), as a result of the launch of the new Daily, and in the heavy segment (up 9%), while volumes declined in the medium segment (down 1%). Commercial Vehicles deliveries increased 18% in EMEA, but declined 21% in LATAM and 15% in APAC.
Commercial Vehicles' 2015 book-to-bill ratio was 1.03, an increase of 5% over 2014. In 2015, truck order intake in Europe increased 29% compared to previous year.
Powertrain
POWERTRAIN
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
3,560 4,464 -20.3% Net sales 912 988 -7.7%
----- ----- ----- --------- --- --- ----
186 223 -37 Operating profit 62 66 -4
--- --- --- ---------------- --- --- ---
5.2 5.0 0.2 p.p. Operating margin
(%) 6.8 6.7 0.1 p.p.
--- --- -------- ---------------- --- --- --------
Powertrain's net sales totaled $912 million for the fourth quarter 2015, an increase of 5.6% over the same period in 2014 on a constant currency basis (down 7.7% on a reported basis) due to positive mix on engine sales and increased volume of transmissions and axles. In the full year 2015, Powertrain's net sales were $3,560 million, a decrease of 5.2% compared to 2014 on a constant currency basis (down 20.3% on a reported basis), primarily attributable to lower captive agricultural equipment demand, and the 2014 build-up of Tier 4 final transition engine inventory for the off-road segment. Sales to external customers accounted for 46% of total net sales in 2015 (41% in 2014).
Operating profit was $62 million for the fourth quarter 2015 ($66 million in Q4 2014), at an operating margin of 6.8%. Net of the impact of currency translation, operating profit improved $5 million from favorable product mix and from SG&A expense reductions. In the full year 2015, Powertrain reported an operating profit of $186 million ($223 million in 2014), with an operating margin of 5.2% (5.0% for 2014). Net of the impact of currency translation, operating profit was in line with the previous year, as the lower volumes were offset by manufacturing efficiencies and SG&A expense reductions.
During the year, Powertrain sold 507,700 engines, a decrease of 13% compared to 2014. By major customer, 31% of engines were supplied to Commercial Vehicles, 10% to Agricultural Equipment, 4% to Construction Equipment and the remaining 55% to external customers (units sold to third parties were up 2% compared to 2014). Additionally, Powertrain delivered approximately 67,800 transmissions and 182,000 axles, an increase of 6% and 16%, respectively, compared to 2014.
Financial Services
FINANCIAL SERVICES
Revenues & Net income ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
1,603 1,828 -12.3% Revenues 377 465 -18.9%
----- ----- ----- -------- --- --- -----
368 364 4 Net income 91 98 -7
--- --- --- ---------- --- --- ---
Financial Services' revenues totaled $377 million in the fourth quarter 2015, down 8.6% compared to Q4 2014 on a constant currency basis (down 18.9% on a reported basis), due to a reduction in interest yields and lower average outstanding portfolio. In the full year 2015, Financial Services' revenues were $1,603 million, flat compared to 2014 on a constant currency basis (down 12.3% on a reported basis).
Net income was $91 million for the fourth quarter, a $7 million decrease compared to Q4 2014, mainly due to reduced net interest margins and the negative impact of currency translation, partially offset by lower income taxes. In the full year 2015, net income was $368 million compared to $364 million in 2014. Lower provisions for credit losses and SG&A expenses, coupled with reduced income taxes, were partially offset by the impact of currency translation.
Retail loan originations in the year were $9.4 billion, down $1.4 billion compared to 2014, mostly due to the decline in Agricultural Equipment sales in NAFTA and the negative impact of currency translation in EMEA and LATAM. The managed portfolio (including unconsolidated joint ventures) of $24.7 billion (of which retail was 65% and wholesale 35%) was down $2.6 billion compared to December 31, 2014. Excluding the impact of currency translation, the managed portfolio was flat compared to 2014.
Dividends
The Board of Directors of CNH Industrial N.V. intends to recommend to the Company's shareholders at the Annual General Meeting a dividend of EUR0.13 per common share, totaling approximately EUR177 million (~$200 million). Subject to the AGM's approval (expected on April 15, 2016), the ex-dividend date would be set at April 25, 2016(1).
Share Buy-Back Program
The Company today announced a buy-back program (the "Program") to repurchase up to $300 million in common shares from time to time, subject to market and business conditions, as previously authorized at the Shareholders' Meeting held on April 15, 2015. The Program will be funded by the Company's liquidity. Details of the Program will be disclosed in accordance with applicable laws and regulations.
2016 U.S. GAAP Outlook
The agricultural equipment industry in NAFTA is forecasted to decline in 2016, with the row crop sector down 15-20%; EMEA agricultural equipment markets are expected to be flat. The commercial vehicles segment is expected to increase up to 5% in EMEA; trading conditions in LATAM are expected to remain challenging. CNH Industrial is setting its 2016 guidance as follows:
-- Net sales of Industrial Activities between $23 billion and $24 billion,
with an operating margin of Industrial Activities between 5.2% and 5.8%;
-- Net industrial debt at the end of 2016 between $1.5 billion and $1.8
billion.
Sergio Marchionne Richard Tobin
Chairman Chief Executive Officer
About CNH Industrial
CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the Company's individual brands is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines, transmissions and axles. More information can be found on the corporate website: www.cnhindustrial.com
Additional Information
Today, at 4:30 p.m. CET / 3:30 p.m. GMT / 10:30 a.m. EST, management will hold a conference call to present 2015 fourth quarter and full year results to financial analysts and institutional investors. The call can be followed live online at: http://bit.ly/CNH_Industrial_2015 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 call.
Non-GAAP Financial Information
CNH Industrial monitors its operations through the use of several non-GAAP financial measures. CNH Industrial believes that these non-GAAP financial measures provide useful and relevant information regarding its results and enhance the reader's ability to assess CNH Industrial's financial performance and financial position. They provide measures which facilitate management's ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions. These and similar measures are widely used in the industries in which the Company operates. These financial measures may not 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 prepared in accordance with U.S. GAAP and/or IFRS.
CNH Industrial non-GAAP financial measures are defined as follows:
-- Operating Profit under U.S. GAAP: 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. Operating Profit of Financial Services is defined as revenues,
less selling, general and administrative expenses, interest expenses and
certain other operating expenses.
-- Trading Profit under IFRS: Trading Profit is derived from financial
information prepared in accordance with IFRS and is defined as income
before restructuring, gains/(losses) on disposal of investments and
other unusual items, interest expense of Industrial Activities, income
taxes, equity in income (loss) of unconsolidated subsidiaries and
affiliates, non-controlling interests.
-- Operating Profit under IFRS: Operating Profit under IFRS is computed
starting from Trading Profit under IFRS plus/minus restructuring costs,
other income (expenses) that are unusual in the ordinary course of
business (such as gains and losses on the disposal of investments and
other unusual items arising from infrequent external events or market
conditions).
-- Net income (loss) before restructuring and other exceptional items: is
defined as Net income (loss), less restructuring charges and exceptional
items, after tax.
-- Net Debt and Net Debt of Industrial Activities (or Net Industrial Debt):
CNH Industrial provides the reconciliation of Net 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 Debt of Industrial Activities.
-- Working capital: is defined as trade receivables and financing
receivables related to sales, net, plus inventories, less trade
payables, plus other assets (liabilities), net.
-- Constant currency: CNH Industrial discusses the fluctuations in revenues
and certain non-GAAP financial measures on a constant currency basis by
applying the prior year exchange rates to current year's values
expressed in local currency in order to eliminate the impact of foreign
exchange rate fluctuations.
Forward-looking statements
All statements other than statements of historical fact contained in this earning release including statements regarding our: 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, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. 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 the Company's control and are difficult to predict. If any of these risks and uncertainties materialize or other assumptions underlying any of the forward-looking statements prove to be incorrect, 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 including, among others: the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products; general economic conditions in each of the Company's markets; changes in government policies regarding banking, monetary and fiscal policies; legislation, particularly relating 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; actions of competitors in the various industries in which the Company competes; 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; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities; housing starts and other construction activity; the Company's ability to obtain financing or to refinance existing debt; a decline in the price of used vehicles; 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 products claims, emissions and/or fuel economy regulatory and contractual issues; the evolution of the Company's contractual relations with Kobelco Construction Machinery Co., Ltd. and Sumitomo (S.H.I.) Construction Machinery Co., Ltd.; the Company's pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including further deterioration of the Eurozone sovereign debt crisis and other similar risks and uncertainties; and the Company's success in managing the risks involved in the foregoing. Further information concerning factors, risks, and uncertainties that could materially affect the Company's financial results is included in our annual report on Form 20-F for the year ended December 31, 2014, prepared in accordance with U.S. GAAP and in our EU Annual Report at December 31, 2014, prepared in accordance with IFRS. Investors should refer to and consider the incorporated information on risks, factors, and uncertainties in addition to the information presented here.
Forward-looking statements speak only as of the date on which such statements are made. Furthermore, in light of ongoing difficult macroeconomic conditions, both globally and in the industries in which CNH Industrial operates, it is particularly difficult to forecast results, and any estimates or forecasts of particular periods that are provided in this earnings release are uncertain. Accordingly, investors should not place undue reliance on such forward-looking statements. The Company can give no assurance that the expectations reflected in any forward-looking statements will prove to be correct. Actual results could differ materially from those anticipated in such forward-looking statements. The Company's outlook is based upon assumptions relating to the factors described in the earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. The Company undertakes no obligation to update or revise publicly its outlook or forward-looking statements, whether as a result of new developments or otherwise. Further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, is included in the Company'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 the Company or persons acting on Company's behalf are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.
Contacts
Media Inquiries Investor Relations
Richard Gadeselli Federico Donati
Tel: +44 207 7660 346 Tel: +39 011 00 62756
Laura Overall Noah Weiss
Tel: +44 207 7660 346 Tel: +1 630 887 3745
e-mail: mediarelations@cnhind.com
www.cnhindustrial.com
CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Operations
For The Years And The Three Months Ended December 31, 2015 and 2014
(Unaudited)
(U.S. GAAP)
($ million) Years Ended December 31, Three Months Ended
December 31,
----------- ------------------------ -------------------
2015 2014 2015 2014
---- ---- ---- ----
Revenues
--------
Net sales 24,677 31,196 6,869 8,018
--------- ------ ------ ----- -----
Finance and interest income 1,235 1,359 275 347
--------------------------- ----- ----- --- ---
TOTAL REVENUES 25,912 32,555 7,144 8,365
-------------- ------ ------ ----- -----
Costs and Expenses
------------------
Cost of goods sold 20,357 25,534 5,586 6,737
------------------ ------ ------ ----- -----
Selling, general and
administrative expenses 2,317 2,925 559 685
------------------------ ----- ----- --- ---
Research and development
expenses 856 1,106 234 297
------------------------ --- ----- --- ---
Restructuring expenses 84 184 32 86
---------------------- --- --- --- ---
Interest expense 1,106 1,318 282 342
---------------- ----- ----- --- ---
Other, net 625 399 127 92
---------- --- --- --- ---
TOTAL COSTS AND EXPENSES 25,345 31,466 6,820 8,239
------------------------ ------ ------ ----- -----
INCOME BEFORE INCOME TAXES AND
EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES
AND AFFILIATES 567 1,089 324 126
------------------------------ --- ----- --- ---
Income taxes 360 467 101 59
------------ --- --- --- ---
Equity in income of
unconsolidated subsidiaries
and affiliates 41 86 8 20
---------------------------- --- --- --- ---
NET INCOME 248 708 231 87
---------- --- --- --- ---
Net income (loss) attributable
to noncontrolling interests (5) (2) - 4
------------------------------ --- --- --- ---
NET INCOME ATTRIBUTABLE TO CNH
INDUSTRIAL N.V. 253 710 231 83
------------------------------ --- --- --- ---
(in $)
-----
Earnings per share attributable to common shareholders
---------------------------------------------
Basic 0.19 0.52 0.17 0.06
----- ---- ---- ---- ----
Diluted 0.19 0.52 0.17 0.06
------- ---- ---- ---- ----
CNH INDUSTRIAL N.V.
Condensed Consolidated Balance Sheets
As of December 31, 2015 and 2014
(Unaudited)
(U.S. GAAP)
($ million) December 31, December 31,
2015 2014
---------- ------------ ------------
Cash and cash equivalents 5,384 5,163
Restricted cash 927 978
Financing receivables, net 19,001 21,472
-------------------------- ------ ------
Inventories, net 5,690 7,008
Property, plant and equipment,
net and Equipment under
operating leases 8,316 8,383
------------------------------ ----- -----
Intangible assets, net 3,257 3,334
---------------------- ----- -----
Other receivables and assets 4,171 5,575
---------------------------- ----- -----
TOTAL ASSETS 46,746 51,913
------------ ------ ------
Debt 26,388 29,594
---- ------ ------
Other payables and liabilities 15,497 17,342
------------------------------ ------ ------
Total liabilities 41,885 46,936
----------------- ------ ------
Redeemable noncontrolling
interest 18 16
------------------------- --- ---
Equity attributable to CNH
Industrial N.V. 4,802 4,922
-------------------------- ----- -----
Noncontrolling interests 41 39
------------------------ --- ---
Equity 4,843 4,961
------ ----- -----
TOTAL EQUITY AND LIABILITIES 46,746 51,913
---------------------------- ------ ------
CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Cash Flows
For The Years Ended December 31, 2015 and 2014
(Unaudited)
(U.S. GAAP)
($ million)
----------
2015 2014
---- ----
Net income 248 708
---------- --- ---
Adjustments to reconcile net income
to net cash provided by/(used in)
operating activities 2,534 (27)
----------------------------------- ----- ---
NET CASH PROVIDED BY OPERATING
ACTIVITIES 2,782 681
------------------------------ ----- ---
NET CASH USED IN INVESTING ACTIVITIES (932) (1,959)
------------------------------------- ---- ------
NET CASH PROVIDED BY/(USED IN)
FINANCING ACTIVITIES (931) 1,365
------------------------------ ---- -----
Effect of foreign exchange rate
changes on cash and cash equivalents (698) (491)
------------------------------------- ---- ----
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 221 (404)
------------------------------------ --- ----
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR 5,163 5,567
------------------------------------ ----- -----
CASH AND CASH EQUIVALENTS, END OF
YEAR 5,384 5,163
--------------------------------- ----- -----
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
(U.S. GAAP)
CNH INDUSTRIAL
Net debt ($ million)
12.31.2015 12.31.2014
---------- ----------
Total debt (1) (26,388) (29,594)
- Asset-backed
financing (12,999) (13,587)
- Other debt (13,389) (16,007)
------------ ------- -------
Derivative hedging
debt 27 35
------------------- --- ---
Cash and cash
equivalents 5,384 5,163
-------------- ----- -----
Restricted cash 927 978
--------------- --- ---
Net debt (2) (20,050) (23,418)
----------- ------- -------
Of which:
Industrial
Activities (1,622) (2,691)
---------- ------ ------
Financial Services (18,428) (20,727)
------------------ ------- -------
Cash, cash
equivalents and
restricted cash 6,311 6,141
---------------- ----- -----
Undrawn committed
facilities 2,995 2,716
------------------ ----- -----
Available liquidity 9,306 8,857
------------------- ----- -----
(1) Inclusive of adjustments
to fair value hedges.
(2) Net Debt is a non-GAAP measure. Refer to
the Non-GAAP Financial Information section of
this press release for information regarding
non-GAAP financial measures.
----------------------------------------------
(U.S. GAAP)
CNH INDUSTRIAL
Change in Net Industrial Debt ($ million)
Full Year 4th
Quarter
--------- --------
2015 2014 2015 2014
---- ---- ---- ----
Net
industrial
(debt)/cash
at beginning
(2,691) (2,214) of period (3,439) (3,935)
------ ------
248 708 Net income 231 87
--- ---
694 725 Amortization
and
depreciation
(*) 182 173
--- ---
Changes in
provisions
and similar,
and items
related to
assets sold
under buy-
back
commitments,
and assets
under
operating
124 (87) leases 83 (51)
--- ---
470 (1,025) Change in
working
capital 1,554 1,456
--- -----
Investments
in property,
plant and
equipment,
and
intangible
(653) (1,005) assets (*) (279) (417)
---- ----
(111) 8 Other changes (14) (69)
---- ---
772 (676) Net
industrial
cash flow
(1) 1,757 1,179
--- -----
(274) (364) Capital
increases
and
dividends 3 2
---- ---- ---------- --- ---
571 563 Currency
translation
differences 57 63
--- --- ------------ --- ---
1,069 (477) Change in Net
industrial
debt 1,817 1,244
----- ---- ------------- ----- -----
Net
industrial
(debt)/cash
at end of
(1,622) (2,691) period (1,622) (2,691)
------ ------ ----------- ------ ------
(*) Excluding assets sold under buy-back commitments
and assets under operating leases.
(1) This item is a non-GAAP measure. Refer to the
Non-GAAP Financial Information section of this
press release for information regarding non GAAP
financial measures.
--------------------------------------------------
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
(U.S. GAAP)
CNH INDUSTRIAL
Net Income and basic EPS before Restructuring and Exceptional Items
($ million, except per share data)
Full Year 4th Quarter
2015 2014 2015 2014
---- ---- ----
248 708 Net income 231 87
--- --- ---------- ---
76 168 Restructuring
expenses, net
of tax 31 80
--- --- -------------- ---
150(1) 64 Other
exceptional
items, net of
tax - -
----- --- -------------- ---
Net income
before
restructuring
and other
exceptional
474 940 items 262 167
--- --- -------------- ---
Net income
before
restructuring
and other
exceptional
items
attributable
to CNH
Industrial
476 930 N.V. 262 162
--- --- -------------- --- ---
1,361 1,354 Weighted
average shares
outstanding
(million) 1,362 1,355
----- ----- --------------- ----- -----
Basic EPS
before
restructuring
and
exceptional
0.35 0.69 items ($) 0.19 0.12
---- ---- -------------- ---- ----
(1) Represents the exceptional charge due to
the re-measurement of Venezuelan operations.
------------------------------------------------
CNH INDUSTRIAL N.V.
Condensed Consolidated Income Statement
For The Years And The Three Months Ended December 31, 2015 and 2014
(Unaudited)
(IFRS)
($ million) 2015 2014 4th Quarter 2015 4th Quarter 2014
---------- ---- ---- ---------------- ----------------
Net revenues 26,378 32,957 7,283 8,488
------------ ------ ------ ----- -----
Cost of sales 21,659 26,841 5,919 7,081
------------- ------ ------ ----- -----
Selling, general and
administrative costs 2,188 2,753 522 643
--------------------- ----- ----- --- ---
Research and
development costs 905 878 267 233
------------------ --- --- --- ---
Other income/(expenses) (83) (86) (23) (13)
----------------------- --- --- --- ---
TRADING PROFIT/(LOSS) 1,543 2,399 552 518
--------------------- ----- ----- --- ---
Gains/(losses) on the
disposal of
investments - - - -
--------------------- --- --- --- ---
Restructuring costs 79 192 31 76
------------------- --- --- --- ---
Other unusual income/
(expenses) (48) (40) (7) (16)
--------------------- --- --- --- ---
OPERATING PROFIT/(LOSS) 1,416 2,167 514 426
----------------------- ----- ----- --- ---
Financial income/
(expenses) (805) (776) (197) (191)
----------------- ---- ---- ---- ----
Result from investments 48 91 10 23
----------------------- --- --- --- ---
Share of the profit/
(loss) of investees
accounted for using
the equity method 50 90 10 22
-------------------- --- --- --- ---
Other income/
(expenses) from
investments (2) 1 - 1
---------------- --- --- --- ---
PROFIT/(LOSS) BEFORE
TAXES 659 1,482 327 258
-------------------- --- ----- --- ---
Income taxes 425 566 188 125
------------ --- --- --- ---
PROFIT/(LOSS) FROM
CONTINUING OPERATIONS 234 916 139 133
---------------------- --- --- --- ---
Profit/(loss) from
discontinued
operations - - - -
------------------ --- --- --- ---
PROFIT/(LOSS) 234 916 139 133
------------- --- --- --- ---
PROFIT/(LOSS) ATTRIBUTABLE TO:
------------------------------
Owners of the parent 236 917 138 128
-------------------- --- --- --- ---
Non-controlling
interests (2) (1) 1 5
--------------- --- --- --- ---
(in $)
-----
BASIC EARNINGS/(LOSS)
PER COMMON SHARE 0.17 0.68 0.10 0.10
--------------------- ---- ---- ---- ----
DILUTED EARNINGS/
(LOSS) PER COMMON
SHARE 0.17 0.68 0.10 0.10
------------------ ---- ---- ---- ----
CNH INDUSTRIAL N.V.
Condensed Consolidated Statement of Financial Position
As of December 31, 2015 and 2014
(Unaudited)
(IFRS)
($
million) December 31, 2015 December 31, 2014
--------- ----------------- -----------------
ASSETS
------
Intangible
assets 5,680 6,031
---------- ----- -----
Property,
plant and
equipment
and
Leased
assets 8,206 8,251
---------- ----- -----
Inventories 5,800 7,140
----------- ----- -----
Receivables
from
financing
activities 19,001 21,472
----------- ------ ------
Cash and
cash
equivalents 6,311 6,141
------------ ----- -----
Other
receivables
and
assets 4,119 5,406
------------ ----- -----
TOTAL
ASSETS 49,117 54,441
------- ------ ------
EQUITY AND
LIABILITIES
------------
Issued
capital
and
reserves
attributable
to owners
of the
parent 7,170 7,534
------------- ----- -----
Non-
controlling
interests 47 43
------------ --- ---
Total
Equity 7,217 7,577
------- ----- -----
Debt 26,458 29,701
---- ------ ------
Other
payables
and
liabilities 15,442 17,163
------------ ------ ------
Total
Liabilities 41,900 46,864
------------ ------ ------
TOTAL
EQUITY
AND
LIABILITIES 49,117 54,441
------------ ------ ------
CNH INDUSTRIAL N.V.
Condensed Consolidated Statement of Cash Flows
For The Years Ended December 31, 2015 and 2014
(Unaudited)
(IFRS)
($ million) 2015 2014
---------- ---- ----
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 6,141 6,489
---------------------------- ----- -----
Profit/(loss) 234 916
------------- --- ---
Adjustments to reconcile profit/
(loss) to cash flows from/(used
in) operating activities 1,996 257
-------------------------------- ----- ---
CASH FLOWS FROM/(USED IN) OPERATING
ACTIVITIES 2,230 1,173
----------------------------------- ----- -----
CASH FLOWS FROM/(USED IN)
INVESTMENT ACTIVITIES (320) (2,380)
------------------------- ---- ------
CASH FLOWS FROM/(USED IN) FINANCING
ACTIVITIES (1,007) 1,373
----------------------------------- ------ -----
Translation exchange differences (733) (514)
-------------------------------- ---- ----
TOTAL CHANGE IN CASH AND CASH
EQUIVALENTS 170 (348)
----------------------------- --- ----
CASH AND CASH EQUIVALENTS AT END OF
YEAR 6,311 6,141
----------------------------------- ----- -----
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
CNH INDUSTRIAL
Revenues by Segment under IFRS ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 % change 2015 2014 % change
---- ---- -------- ---- ---- --------
11,025 15,204 -27.5 Agricultural
Equipment 2,982 3,403 -12.4
------ ------ ----- ----- -----
2,542 3,346 -24.0 Construction
Equipment 609 800 -23.9
----- ----- ----- --- -----
9,759 11,087 -12.0 Commercial
Vehicles 2,899 3,412 -15.0
----- ------ ----- ----- -----
3,569 4,475 -20.2 Powertrain 913 991 -7.9
----- ----- ----- ---------- --- --- ----
(1,992) (2,704) - Eliminations
and other (480) (527) -
------ ------ --- ------------- ---- ---- ---
24,903 31,408 -20.7 Total
Industrial
Activities 6,923 8,079 -14.3
------ ------ ----- ----------- ----- ----- -----
1,932 2,086 -7.4 Financial
Services 482 545 -11.6
----- ----- ---- ---------- --- --- -----
(457) (537) - Eliminations
and other (122) (136) -
---- ---- --- ------------- ---- ---- ---
26,378 32,957 -20.0 Total 7,283 8,488 -14.2
------ ------ ----- ----- ----- ----- -----
CNH INDUSTRIAL
Trading profit/(loss) by Segment under IFRS ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 Change 2015 2014 Change
---- ---- ------ ---- ---- ------
702 1,689 -987 Agricultural
Equipment 268 238 30
--- ----- ---- --- ---
25 66 -41 Construction
Equipment (13) 2 -15
--- --- --- --- ---
211 2 209 Commercial
Vehicles 132 113 19
--- --- --- --- ---
178 220 -42 Powertrain 73 73 -
--- --- --- ---------- --- --- ---
(80) (110) 30 Eliminations
and other (23) (47) 24
--- ---- --- ------------- --- --- ---
1,036 1,867 -831 Total
Industrial
Activities 437 379 58
----- ----- ---- ----------- --- --- ---
507 532 -25 Financial
Services 115 139 -24
--- --- --- ---------- --- --- ---
- - - Eliminations
and other - - -
--- --- --- ------------- --- --- ---
1,543 2,399 -856 Total 552 518 34
----- ----- ---- ----- --- --- ---
5.8 7.3 -1.5 p.p Trading
margin (%) 7.6 6.1 1.5 p.p
--- --- -------- ----------- --- --- -------
CNH INDUSTRIAL
Key Balance Sheet data under IFRS ($ million)
December 31, 2015
December 31, 2014
-----------------
Total assets 49,117 54,441
------
Total equity 7,217 7,577
-----
Equity attributable to CNH
Industrial N.V. 7,170 7,534
-----
Net debt (19,951) (23,590)
-------- ------- -------
Of which Net industrial debt (1,570) (2,874)
---------------------------- ------ ------
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
CNH INDUSTRIAL
Net income reconciliation ($ million)
Full Year 4th Quarter
--------- -----------
2015 2014 2015 2014
---- ---- ---- ----
248 708 Net income under U.S.
GAAP 231 87
--- ---
Adjustments to conform
with IFRS:
(28) 231 Development costs, net
of amortization (30) 50
--- ---
8 8 Goodwill and other
intangible assets 2 2
--- --- ------------------- --- ---
47 56 Defined benefit plans 14 44
--- --- --------------------- --- ---
5 (8) Restructuring provisions 1 10
--- --- ------------------------ --- ---
19 20 Other adjustments 8 6
--- --- ----------------- --- ---
1 (103) Tax impact on
adjustments 13 (6)
--- ---- -------------- --- ---
(66) 4 Deferred tax assets and
tax contingencies
recognition (100) (60)
--- --- ------------------------ ---- ---
(14) 208 Total adjustments (92) 46
--- --- ----------------- --- ---
234 916 Profit under IFRS 139 133
--- --- ----------------- --- ---
CNH INDUSTRIAL
Total Equity reconciliation ($ million)
Full Year
---------
2015 2014
---- ----
Total Equity under U.S.
GAAP 4,843 4,961
-----
Adjustments to conform
with IFRS:
Development costs, net
of amortization 2,536 2,819
-----
Goodwill and other
intangible assets (113) (122)
------------------- ---- ----
Defined benefit plans - (6)
--------------------- --- ---
Restructuring provisions (5) (12)
------------------------ --- ---
Other adjustments 2 (16)
----------------- --- ---
Tax impact on
adjustments (729) (815)
-------------- ---- ----
Deferred tax assets and
tax contingencies
recognition 683 768
------------------------ --- ---
Total adjustments 2,374 2,616
----------------- ----- -----
Total Equity under IFRS 7,217 7,577
----------------------- ----- -----
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 2015 At December 31, 2015 Average 2014 At December 31, 2014
------------ -------------------- ------------ --------------------
Euro 0.901 0.919 0.753 0.824
---- ----- ----- ----- -----
Pound
sterling 0.654 0.674 0.607 0.642
--------- ----- ----- ----- -----
Swiss
franc 0.962 0.995 0.914 0.990
------ ----- ----- ----- -----
Polish
zloty 3.771 3.917 3.149 3.520
------ ----- ----- ----- -----
Brazilian
real 3.335 3.960 2.349 2.653
--------- ----- ----- ----- -----
Canadian
dollar 1.278 1.388 1.104 1.158
-------- ----- ----- ----- -----
Argentine
peso 9.258 12.984 8.115 8.551
--------- ----- ------ ----- -----
Turkish
lira 2.726 2.918 2.188 2.333
------- ----- ----- ----- -----
(1) The Italian Stock Exchange, after having ascertained that no constraints subsist, has authorized the Company to set April 25, 2016 as the ex-dividend date and to maintain April as the ex-dividend date month of the Company.
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SOURCE CNH Industrial N.V.
