The group, which includes the CASE quarrying and construction equipment brand, sats iy made record consolidated revenues of US$6,082m (up 17.5% compared to Q2 2021 for continuing operations, up 20% at constant currency).
Net income for Q2 totalled US$552m, adjusted net income was US$583m, with adjusted diluted EPS of US$0.43. Adjusted EBIT (earnings before interest and taxes) from industrial activities was US$654m, up US$82m compared to Q2 2021.
CNH chief excecutive Scott Wine commented: “Our robust second quarter results highlighted the CNH Industrial team’s focus on execution, as they excelled in both tactically ensuring we continued to meet customer commitments and making notable progress on our strategic initiatives. These considerations and strong price realisation contributed to our impressive sales and adjusted diluted EPS growth, up 17.5% and 16.2% respectively. Pricing, volumes, and favourable mix offset significant cost escalation and gross profit increased US$174m year over year."
Wine said that CNH expects to meet its full year guidance, but anticipates a decidedly less advantageous climate for the next several quarters.
"The strengthening US dollar is impacting soft commodity prices, risking further deterioration in farmer sentiment and income, while we see the likelihood of declining European industrial demand due to the war in Ukraine, energy risk and inflation," he added.
In the Americas, steady demand from cash crop customers indicates that the market may be more stable, but overall we are positioning for a recession. Our team has proven that, regardless of the environment, they will continue to execute our strategic priorities and deliver for our customers and shareholders.”
He added that component shortages had again impacted production, resulting in free cash flow of US$404m which, though a sequential improvement, was still down almost 50% versus Q2 2021.
Wine said that, despite this, CNH continues to expect to deliver more than US$1bn of free cash flow for 2022.
He added: "Looking forward, we have exciting new products to unveil at the upcoming trade shows and our Tech Day late in the year. Raven and our precision team are making great strides and helping to drive agriculture’s growth, and construction equipment, bolstered by Sampierana, is significantly increasing its profitability."