Financial Performance - Net sales for Q3 2024 were $3,997 million, a decrease of 25% compared to $5,332 million in Q3 2023[8] - Total revenues for the nine months ended September 30, 2024, were $14,960 million, down 16% from $17,895 million in the same period of 2023[8] - Net income for Q3 2024 was $310 million, a decline of 43% from $540 million in Q3 2023[9] - Earnings per share for Q3 2024 were $0.24, compared to $0.40 in Q3 2023[8] - The company reported a comprehensive income of $301 million for Q3 2024, down from $483 million in Q3 2023[9] - The company reported a net income of $368 million for the nine months ended September 30, 2024, compared to $467 million for the same period in 2023, indicating a decrease of approximately 21.2%[13] - Basic earnings per share (EPS) for the three months ended September 30, 2024, was $0.24, a decrease of 40% compared to $0.40 for the same period in 2023[34] - The company reported a comprehensive loss of $58 million for Q3 2024, compared to a comprehensive income of $537 million in Q3 2023[16] Revenue Breakdown - Total revenues for Q3 2024 were $4,654 million, a decrease of 22.2% compared to $5,986 million in Q3 2023[8] - Agriculture segment revenue for Q3 2024 was $3,310 million, down 24.4% from $4,384 million in Q3 2023[29] - Construction segment revenue for Q3 2024 was $687 million, a decline of 27.5% compared to $948 million in Q3 2023[29] - Financial Services revenue for Q3 2024 was $659 million, slightly up from $653 million in Q3 2023[29] - Total industrial activities revenue for Q3 2024 was $3,997 million, down 25% from $5,332 million in Q3 2023[29] - Revenues from sales of goods for the nine months ended September 30, 2024, were $12,895 million, down 19.4% from $16,031 million in the prior year[30] Expenses and Liabilities - Research and development expenses for Q3 2024 were $221 million, a decrease of 17% compared to $266 million in Q3 2023[8] - Total liabilities decreased to $36,264 million as of September 30, 2024, from $38,117 million at the end of 2023[6] - The company incurred restructuring expenses of $12 million and $5 million during Q3 2024 and 2023, respectively, totaling $94 million and $8 million for the nine months ended September 30, 2024, and 2023[66] - Warranty and campaign program liabilities increased to $637 million as of September 30, 2024, from $610 million at the end of 2023[65] Cash and Cash Equivalents - Cash and cash equivalents were $1,801 million as of September 30, 2024, down from $4,322 million at December 31, 2023[6] - The total cash, cash equivalents, and restricted cash at the end of the period was $2,450 million, down from $3,685 million at the end of September 30, 2023, a decrease of 33.5%[11] - The company experienced a net increase in cash, cash equivalents, and restricted cash of $(2,595) million for the nine months ended September 30, 2024, compared to $(1,444) million for the same period in 2023, indicating a worsening cash position[11] Assets and Investments - Total assets as of September 30, 2024, were $44,033 million, down from $46,267 million as of December 31, 2023[6] - The company’s retained earnings increased to $10,136 million as of September 30, 2024, compared to $7,906 million as of September 30, 2023, reflecting an increase of 28.3%[14] - Total investments in unconsolidated subsidiaries and affiliates increased to $532 million as of September 30, 2024, from $479 million at the end of 2023, a rise of 11%[59] Acquisitions and Goodwill - The company completed the acquisition of Hemisphere for $181 million on October 12, 2023, enhancing its precision and automation technology[20] - CNH acquired a controlling interest in Bennamann for approximately $51 million on March 15, 2023[20] - The company purchased Augmenta for approximately $80 million on March 13, 2023, acquiring the remaining 89.5% it did not own[21] - Goodwill associated with the Hemisphere acquisition was preliminarily estimated at $111 million[20] - Goodwill increased to $3,615 million as of September 30, 2024, from $3,614 million at the beginning of the year, reflecting adjustments from acquisitions[60] Financing and Credit Quality - Proceeds from long-term debt increased to $13,094 million for the nine months ended September 30, 2024, compared to $7,510 million in the same period of 2023, marking a 74.5% increase[11] - The allowance for credit losses for retail financing increased to $400 million as of September 30, 2024, from $322 million at the beginning of the period[48] - The provision for credit losses increased due to specific reserve needs in South America, primarily related to Brazilian market conditions[49] - Total past due receivables in North America for 2024 amounted to $63 million, with a total performing balance of $8,932 million[51] Derivatives and Risk Management - The total notional amount of CNH's foreign exchange derivatives was $7.3 billion as of September 30, 2024, up from $6.1 billion at December 31, 2023[76] - The total notional amount of CNH's interest rate derivatives was approximately $9.2 billion as of September 30, 2024, compared to $9.0 billion at December 31, 2023[77] - The fair value of derivatives designated as hedging instruments totaled $133 million as of September 30, 2024, an increase from $91 million at December 31, 2023[83] - The company utilizes derivatives to mitigate exposure to interest rate and foreign currency risks, with no speculative purposes involved[75] Shareholder Information - EXOR N.V. held 45.3% of CNH's voting power as of September 30, 2024, allowing significant influence over shareholder decisions[96] - CNH did not enter into any significant transactions with EXOR N.V. during the nine months ended September 30, 2024[97]

| --- | --- | --- | --- | |-----------------------------------------------|--------------------|---------|-----------| | | NON-GAAP \nQ3 2024 | Q3 2023 | Change | | Adjusted EBIT of Industrial Activities | 336 | 627 | (46)% | | Adjusted EBIT margin of Industrial Activities | 8.4% | 11.8% | (340) bps | | Adjusted net income | 304 | 540 | (44)% | | Adjusted diluted EPS $ | 0.24 | 0.40 | (0.16) | | Free cash flow of Industrial Activities | (180) | (127) | (53) | (3) (7) PRESS RE Exhibit 99.1 CNH Industrial N.V ...

Financial Performance - Net sales for Q2 2024 were $4,803 million, a decrease of 19.3% compared to $5,954 million in Q2 2023[6] - Total revenues for the first half of 2024 were $10,306 million, down 13.4% from $11,909 million in the same period of 2023[6] - Net income for Q2 2024 was $438 million, a decline of 38.3% from $710 million in Q2 2023[7] - Earnings per share (EPS) for Q2 2024 were $0.34, compared to $0.53 in Q2 2023, reflecting a decrease of 35.8%[6] - Comprehensive income attributable to CNH Industrial N.V. for Q2 2024 was $292 million, down from $776 million in Q2 2023[7] - Net income for the six months ended June 30, 2024, was $840 million, a decrease of 29.9% compared to $1,196 million for the same period in 2023[8] - Total revenues for the three months ended June 30, 2024, were $5,488 million, a decrease of 16.4% compared to $6,567 million for the same period in 2023[22] - The company's revenues from sales of goods were $4,789 million for the three months ended June 30, 2024, down from $5,942 million in the same period of 2023, representing a decline of 19.4%[23] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash at the end of Q2 2024 were $2,647 million, a decrease of 32.6% from $3,925 million at the end of Q2 2023[8] - The company reported a net cash used by operating activities of $515 million in the first half of 2024, compared to a net cash used of $840 million in the same period of 2023[8] - Proceeds from long-term debt in the first half of 2024 were $8,754 million, significantly higher than $4,408 million in the first half of 2023[8] - Payments of long-term debt rose to $8,362 million, up from $3,485 million in the same period last year[8] - The company reported a net cash used by investing activities of $929 million, an improvement from $1,247 million in the prior year[8] Research and Development - Research and development expenses for the first half of 2024 totaled $465 million, down 7% from $500 million in the first half of 2023[6] Acquisitions and Investments - CNH Industrial's acquisition of Hemisphere for $181 million aims to enhance its precision, automation, and autonomy technology in agriculture and construction sectors[15] - The company recorded preliminary goodwill of $111 million and intangible assets of $51 million from the Hemisphere acquisition, with adjustments reducing goodwill by $3 million as of June 30, 2024[15] - CNH acquired a controlling interest in Bennamann for approximately $51 million, with preliminary goodwill recorded at $118 million[15] - The acquisition of Augmenta for approximately $80 million included preliminary goodwill of $76 million, with adjustments reducing goodwill by $14 million[16] Equity and Dividends - The total equity balance as of June 30, 2024, was $7,602 million, compared to $7,955 million at March 31, 2024, reflecting a decrease primarily due to treasury stock acquisition[10] - The company paid dividends totaling $591 million in the second quarter of 2024, compared to $527 million in the same period of the previous year[10] Taxation - The effective tax rate for Q2 2024 was 20.9%, down from 22.9% in Q2 2023, primarily due to discrete items related to inflation adjustments in Argentina[29] - For the first half of 2024, the effective tax rate was 20.1%, compared to 24.9% in the same period of 2023, reflecting similar discrete item impacts[29] Segment Performance - Agriculture segment reported Adjusted EBIT of $536 million for Q2 2024, a decrease from $821 million in Q2 2023; for the first half, it was $957 million compared to $1,391 million in 2023[31] - Construction segment Adjusted EBIT was $60 million in Q2 2024, down from $72 million in Q2 2023; for the first half, it was $111 million compared to $116 million in 2023[31] - Financial Services segment net income for Q2 2024 was $91 million, slightly down from $94 million in Q2 2023[31] Credit and Financing - Total financing receivables as of June 30, 2024, were $23.868 billion, a decrease from $24.249 billion as of December 31, 2023[32] - Retail financing receivables were $13.763 billion as of June 30, 2024, down from $13.868 billion at the end of 2023[32] - The allowance for credit losses for retail was $322 million as of June 30, 2024, compared to $330 million at the beginning of the quarter[37] - The provision for credit losses is included in selling, general and administrative expenses, indicating a focus on managing credit risk[38] Derivatives and Risk Management - The total notional amount of CNH's foreign exchange derivatives was $6.3 billion as of June 30, 2024, compared to $6.1 billion at December 31, 2023[69] - CNH's interest rate derivatives totaled approximately $8.7 billion at June 30, 2024, down from $9.0 billion at December 31, 2023[70] - For the three months ended June 30, 2024, CNH recognized a net gain of $32 million from derivatives, with a loss of $15 million from foreign exchange contracts and a gain of $47 million from interest rate contracts[72] Other Comprehensive Income - The total other comprehensive loss for the three months ended June 30, 2024, was $141 million, and for the six months, it was $190 million[84] - As of June 30, 2024, CNH's total other comprehensive loss amounted to $2,564 million, compared to $2,246 million as of June 30, 2023, reflecting an increase of 14.1%[86] Corporate Governance - As of June 30, 2024, EXOR N.V. held 45.2% of CNH's voting power, allowing significant influence over shareholder decisions[89] - CNH and Iveco Group entered into a ten-year Engine Supply Agreement for the design and supply of off-road engines post-Demerger[90]

Core Insights - CNH Industrial (CNH) reported quarterly earnings of $0.38 per share, matching the Zacks Consensus Estimate, but down from $0.52 per share a year ago [7] - The company posted revenues of $5.49 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.72% and down from $6.57 billion year-over-year [2] - CNH shares have declined approximately 16.5% since the beginning of the year, contrasting with a 14% gain in the S&P 500 [9] Financial Performance - The earnings surprise for CNH was 26.92% when it produced earnings of $0.33 per share against an expected $0.26 per share a quarter ago [1] - Over the last four quarters, CNH has surpassed consensus EPS estimates two times [8] - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $5.43 billion, and for the current fiscal year, it is $1.47 on revenues of $22.17 billion [11] Industry Context - CNH belongs to the Zacks Manufacturing - Farm Equipment industry, which is currently ranked in the bottom 13% of over 250 Zacks industries [5] - Another competitor in the same industry, Deere, is expected to report revenues of $10.89 billion, reflecting a 23.7% decline from the previous year [6] - The estimate revisions trend for CNH is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [14]

Revenue and Sales Performance - Consolidated revenue for Q2 2024 was $5,488 million, a decrease of 16% compared to Q2 2023's $6,567 million[1] - Net sales of Industrial Activities fell to $4,803 million, down 19% from $5,954 million in Q2 2023[1] - Agriculture net sales decreased by 20% to $3,913 million, with adjusted EBIT at $536 million, down from $821 million in Q2 2023[4][5] - Construction net sales were $890 million, a 16% decline from $1,064 million in Q2 2023, with adjusted EBIT of $60 million[6] - Total revenues for the first half of 2024 were $10,306 million, down 13.5% from $11,909 million in the same period of 2023[26] - Net sales for Q2 2024 were $4,803 million, a decrease of 19.3% compared to $5,954 million in Q2 2023[26] - Year-to-date consolidated revenue for Q2 2024 was $10.31 billion, a decrease of 13% from $11.91 billion in YTD Q2 2023[58] - Net sales of Industrial Activities for YTD Q2 2024 were $8.93 billion, down 17% from $10.73 billion in the same period last year[58] Income and Earnings - Adjusted net income for Q2 2024 was $485 million, down 32% from $711 million in Q2 2023, with adjusted diluted EPS at $0.38 compared to $0.52[2][3] - Net income attributable to CNH Industrial N.V. for Q2 2024 was $433 million, a decline of 38.6% from $706 million in Q2 2023[26] - Basic earnings per share for Q2 2024 were $0.34, compared to $0.53 in Q2 2023, reflecting a decrease of 35.8%[26] - Net Income for the six months ended June 30, 2024, was $840 million, compared to $1,196 million in the same period of 2023, reflecting a decline of 29.9%[38] - Financial Services net income for the six months ended June 30, 2023, was $209 million, an increase from $172 million in the previous year[44] Cash Flow and Liquidity - Cash flow from operating activities improved to $379 million in Q2 2024, compared to a cash outflow of $139 million in Q2 2023[1][3] - Free cash flow for Industrial Activities was negative $515 million for the first half of 2024, compared to negative $840 million in the same period of 2023[29] - Cash flow used in operating activities for YTD Q2 2024 was $(515) million, an improvement of $325 million compared to $(840) million in YTD Q2 2023[58] - Cash and cash equivalents decreased to $2,002 million as of June 30, 2024, from $4,322 million at the end of 2023[33] - Total cash and cash equivalents, including restricted cash, were reported at $2,647 million as of June 30, 2024[46] Assets and Liabilities - Total assets as of June 30, 2024, were $43,959 million, down from $46,351 million at the end of 2023[33] - Total liabilities decreased to $36,297 million as of June 30, 2024, from $38,117 million at the end of 2023[33] - Total Assets as of June 30, 2024, amounted to $43,959 million, a decrease from $46,351 million as of December 31, 2023, indicating a reduction of 5.5%[40] - Total Liabilities decreased to $36,297 million as of June 30, 2024, from $38,117 million at the end of 2023, a decline of 4.8%[40] - The company reported a total debt of $26,868 million as of June 30, 2024, compared to $27,472 million as of December 31, 2023[46] Expenses and Restructuring - The gross profit margin for Industrial Activities decreased to 22.9%, down 210 basis points from 25.0% in Q2 2023[1] - Research and development expenses for Q2 2024 were $237 million, a decrease of 12% from $269 million in Q2 2023[26] - The company reported restructuring expenses of $82 million for the six months ended June 30, 2024, compared to $3 million in the same period of 2023[38] - The restructuring program aims for a 10-15% reduction in total labor and non-labor SG&A expenses, with total restructuring charges expected to reach up to $180 million[3] Market Outlook and Guidance - The agriculture segment net sales are projected to decline between 15% and 20% year-over-year, with adjusted EBIT margin between 13.0% and 14.0%[56] - The construction segment net sales are expected to decrease between 15% and 20% year-over-year, with an adjusted EBIT margin between 5.0% and 6.0%[56] - Full-year guidance has been updated to reflect weaker market conditions, with adjusted diluted EPS expected to be between $1.30 and $1.40[56]

Core Insights - CNH Industrial reported a 16% decline in consolidated revenue for Q2 2024, totaling $5.49 billion, compared to $6.57 billion in Q2 2023, primarily due to lower industry demand [1][30] - Net income decreased to $438 million, with diluted earnings per share (EPS) of $0.34, down from $710 million and $0.52 in the same quarter last year [1][30] - The company anticipates continued weakness in global industry retail sales for agriculture and construction equipment in the second half of 2024 [8][34] Financial Performance - Adjusted net income for Q2 2024 was $485 million, with adjusted diluted EPS of $0.38, compared to $711 million and $0.52 in Q2 2023 [2][30] - Gross profit margin decreased to 24.4% from 27.0% in Q2 2023, attributed to lower production volume and unfavorable product mix [4][30] - Industrial Free Cash Flow generation was $140 million in Q2 2024, a decrease from previous periods [1][30] Segment Performance - Agriculture segment net sales fell by 20% to $3.91 billion, driven by lower shipment volumes and reduced dealer inventory requirements [3][36] - Construction segment net sales decreased by 16% to $890 million, primarily due to lower volumes across all regions [5][38] - Financial Services segment revenue increased by 19% to $1.37 billion, with net income rising by 37% to $209 million [11][30] Cost Management and Outlook - The company is implementing cost reduction programs aimed at improving through-cycle margins, with a target of achieving a 10-15% reduction in total labor and non-labor SG&A expenses [8][35] - Full-year guidance has been updated to reflect weaker market conditions, with agriculture segment net sales expected to decline between 15% and 20% year-over-year [40][34] - The adjusted EBIT margin for the agriculture segment is projected to be between 13.0% and 14.0% [40]

Core Points - CNH has announced a collaboration with Oxfam to support two social projects in Africa, focusing on sustainable development goals including decent work, reducing inequalities, responsible consumption, and climate action [2][4][17] - The Social Factory Initiative in South Africa aims to create a new model for plastic recycling and social inclusion, directly helping 1,200 people and improving conditions for over 300,000 [4][7][10] - The Sumud Project in Tunisia focuses on supporting micro, small, and medium-sized farms, aiming to assist around 1,000 individuals in vulnerable communities [8][14][15] Project Details - The collaboration will provide financial, technical, and training support to develop crisis management strategies for businesses, particularly in the agricultural, tourism, and artisanal sectors [3][8] - The initiative is co-financed by the Italian Agency for Development Cooperation and supported by various public and private organizations [3][4] - The projects are designed to empower women, young people, and individuals with disabilities, addressing significant gender inequalities in the workforce [4][17] Company Background - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [18] - The company operates various brands, including Case IH and New Holland, providing comprehensive agricultural applications and construction products [18] - CNH has a history of over two centuries in pioneering its sectors and continues to innovate for customer efficiency and success [11]

Core Insights - CNH is focusing on raising environmental awareness through educational projects in Brazil, particularly targeting children and young people as future custodians of the planet [1][4] - The company has sponsored campaigns in schools across both urban and remote areas in Brazil's north-east for two consecutive years, emphasizing the importance of environmental education [2][4] - CNH's initiatives include a variety of extra-curricular activities that promote environmental education, diversity, inclusion, and human rights advocacy [4][5] Company Overview - CNH Industrial is a global leader in equipment, technology, and services, with a strong emphasis on innovation, sustainability, and productivity [6] - The company operates various brands, including Case IH, New Holland, and CASE, which provide comprehensive agricultural and construction solutions [6] - CNH's workforce consists of over 40,000 employees, contributing to a diverse and inclusive workplace aimed at empowering customers [3][6] Educational Initiatives - The educational content delivered to children was designed to be engaging and accessible, utilizing audio, comic books, workshops, and theatre productions [5] - Over 15,000 children in the states of Piauí and Maranhão participated in these educational activities, highlighting the scale of CNH's outreach [5]

Core Insights - CNH is enhancing its research and development capabilities with the introduction of the Multi-Vehicle Simulator (MVS) at the India Technology Center (ITC), which will facilitate virtual testing and evaluation of products before physical prototypes are created [2][3][5] - The MVS is expected to improve product quality while reducing waste by minimizing the need for physical prototypes, thus streamlining the development process [6] - CNH's commitment to innovation, sustainability, and productivity is reflected in its strategic direction and investment in advanced technologies to support its global and regional brands [8] Company Overview - CNH Industrial is a leading global equipment, technology, and services company with a workforce of over 40,000 employees, dedicated to empowering customers in agriculture and construction sectors [4][8] - The ITC, established in 2021, aims to support CNH's business in India and enhance its global product portfolio [7] - CNH's brands include Case IH, New Holland, CASE, and others, providing a comprehensive range of agricultural and construction equipment, along with digital technologies [8]

Group 1 - CNH Industrial has initiated production of its first electric compact wheel loader at the Lecce plant in Italy as part of its 'A Sustainable Year' series [1][4] - The Lecce site produces over 200 models across seven production lines, including a new line dedicated to electric compact wheel loaders [2] - The company emphasizes its commitment to innovation, sustainability, and productivity, providing strategic direction and R&D capabilities to support its global brands [3] Group 2 - The new electric compact wheel loader weighs 3.7 tons and features a redesign aimed at enhancing sustainability in manufacturing processes [4] - Lecce hosts CNH's largest photovoltaic power installation, consisting of 7,300 solar panels with a peak power of 3.3 Megawatts, which reduces CO2 emissions by over 1,200 tons annually [4] - CNH has a long history of innovation spanning over two centuries, with a workforce of over 40,000 employees dedicated to empowering customers and driving efficiency [5]