CNH Industrial says it made a solid performance in the first quarter of the year, with consolidated revenues up by 13.4% to US$4.6bn compared to Q1 2021 for continuing operations.
The group, which includes the CASE quarrying and construction equipment brand, had net Q1 income of US$336m and adjusted net income of US$378m, with adjusted diluted earnings per share (EPS) of US$0.28.
Seasonal free cash flow absorption was US$1,059m from industrial activities, amid continued supply chain disruptions.
Net sales from industrial activities totalled US$4,180m in Q1, up 13% mainly due to favourable price realisation (average selling price per unit).
Adjusted EBIT (earnings before interest and taxes) of industrial activities totalled US$429m (US$393m in Q1 2021), with both segments up year over year. Agriculture adjusted EBIT margin above 12% and construction at 4%.
Adjusted net income was US$378m, with adjusted diluted earnings per share of US$0.28 (adjusted net income of US$352m in Q1 2021, with adjusted diluted earnings per share of US$0.26).
Adjusted net income in March 2022 excludes, among other items, US$71m related to asset write-downs, financial receivable allowances and valuation allowances on deferred tax assets as a result of the suspension of operations in Russia.
CNH says that adjusted net income in March 2022 excludes, among other items, US$71m related to asset write-downs, financial receivable allowances and valuation allowances on deferred tax assets as a result of the suspension of operations in Russia.
Adjusted gross profit margin of industrial activities of 22.2%, up 0.6% from Q1 2021 primarily due to better mix and favourable price realisation in agriculture.
Free cash flow of industrial activities was negative US$1.1bn as a result of higher than historical seasonal working capital cash absorption primarily due to supply chain disruptions. Total debt was US$21.3bn at March 31, 2022 (compared with US$20.9bn at December 31, 2021).
