The following is an extract from the “CNH Industrial 2020 third quarter results” press release. The complete press release can be accessed by visiting the media section of the CNH Industrial corporate website: https://www.cnhindustrial.com/
CNH Industrial reports strong results, with all divisions performing ahead of earlier expectations. Consolidated revenues were $6.5 billion, adjusted net income was $156 million, and positive free cash flow of Industrial Activities was $1.0 billion. At quarter end, available liquidity was $13.2 billion.
Financial results presented under U.S. GAAP
- Net sales of Industrial Activities up 4% (up 4% at constant currency), primarily driven by an 11% increase in Agriculture.
- Adjusted EBIT of Industrial Activities of $238 million, compared to $284 million in 2019 which included a $50 million gain realized from granting to Nikola Corporation access to certain Iveco technology as in-kind contribution for stock issuance. Positive price realization in Agriculture and Commercial and Specialty Vehicles, and cost containment actions across all segments fully offset negative mix.
- Adjusted net income of $156 million (or adjusted diluted earnings per share of $0.11) after excluding, from the $932 million reported net loss, the $1,207 million negative fair value adjustment of the investment in Nikola Corporation, and a tax benefit of $82 million due to the release of valuation allowances on deferred tax assets in certain jurisdictions.
- Reported income tax benefit of $15 million and adjusted income tax expense of $81 million, with adjusted effective tax rate (adjusted ETR) of 38%, which reflects the impact of pre-tax losses in jurisdictions where tax benefits are not recognized and excludes the release of deferred tax valuation allowances referred to above.
- Positive free cash flow of Industrial Activities of $987 million resulting from a reduction in working capital and a variety of cash preservation measures. Total Debt of $24.7 billion and net debt of Industrial Activities of $1.5 billion, a reduction of $0.8 billion compared to June 30, 2020.
- Available liquidity of $13.2 billion at September 30, 2020. In July, CNH Industrial Capital LLC issued $600 million in aggregate principal amount of 1.950% Notes due 2023. Subsequent to the quarter-end, in October, CNH Industrial Capital LLC also issued $500 million in aggregate principal amount of 1.875% Notes due 2026.