Workflow
CNH Industrial N.V.(CNH) - 2024 Q4 - Annual Results
CNHCNH Industrial N.V.(CNH)2025-02-04 13:04

Financial Performance - Fourth quarter consolidated revenues decreased by 28% to 4.88billion,andfullyearconsolidatedrevenuesdeclinedby204.88 billion, and full year consolidated revenues declined by 20% to 19.84 billion[1][3][16] - Fourth quarter net income was 176million,a70176 million, a 70% decrease compared to 583 million in Q4 2023; full year net income was 1,259million,down451,259 million, down 45% from 2,287 million in 2023[1][3][16] - Full year diluted EPS was 0.99,downfrom0.99, down from 1.69 in 2023; adjusted diluted EPS was 1.05comparedto1.05 compared to 1.63 in the previous year[1][3][16] - The company reported a net income of 176millionforQ42024,comparedto176 million for Q4 2024, compared to 583 million in Q4 2023, representing a decrease of 69.8%[33] - Net income for the year ended December 31, 2024, was 1,259million,adecreaseof44.81,259 million, a decrease of 44.8% compared to 2,287 million in 2023[42] - Adjusted net income for the year was 1,339million,comparedto1,339 million, compared to 2,217 million in the previous year, reflecting a decline of approximately 39.5%[55] - The adjusted diluted EPS for the year was 1.05,downfrom1.05, down from 1.63 in 2023, representing a decrease of about 35.4%[55] Segment Performance - Agriculture segment net sales fell by 31% to 3.41billioninQ42024,withadjustedEBITdecreasingto3.41 billion in Q4 2024, with adjusted EBIT decreasing to 244 million from 635millioninQ42023[6][7][16]Constructionsegmentnetsalesdecreasedby33635 million in Q4 2023[6][7][16] - Construction segment net sales decreased by 33% to 718 million in Q4 2024, with adjusted EBIT down to 18millionfrom18 million from 62 million in Q4 2023[8][9][16] - Adjusted EBIT for Industrial Activities in Q4 2024 was 194million,a71194 million, a 71% decrease from 662 million in Q4 2023, with an adjusted EBIT margin of 4.7%[3][4][16] - The Agriculture segment's adjusted EBIT for the year ended December 31, 2024, was 1,470million,downfrom1,470 million, down from 2,636 million in 2023[50] - The Construction segment's adjusted EBIT for the year ended December 31, 2024, was 169million,adecreasefrom169 million, a decrease from 238 million in 2023[50] Revenue and Sales Forecast - The company forecasts a decline in global industry retail sales for both agriculture and construction equipment markets in 2025, with net sales expected to be lower than in 2024[17][18][19] - Agriculture segment net sales are projected to decrease between 13% and 18% year-over-year in 2025, while construction segment net sales are expected to decline between 5% and 10%[19] Cash Flow and Assets - Cash flows from operating activities increased to 1,968millionin2024,comparedto1,968 million in 2024, compared to 907 million in 2023, reflecting a significant improvement[37] - Cash flows from operating activities for the year ended December 31, 2024, were 1,968million,comparedto1,968 million, compared to 907 million in 2023, indicating a significant increase[53] - Free cash flow of Industrial Activities for the year ended December 31, 2024, was 1,216million,adecreasefrom1,216 million, a decrease from 1,630 million in 2023[53] - CNH's total assets decreased to 42,933millionasofDecember31,2024,from42,933 million as of December 31, 2024, from 46,267 million in 2023, a reduction of 7.9%[35] - Cash and cash equivalents decreased to 3,191millionin2024from3,191 million in 2024 from 4,322 million in 2023, a decline of 26.1%[35] Liabilities and Debt - The company's total liabilities also decreased to 35,165millionin2024,downfrom35,165 million in 2024, down from 38,117 million in 2023, a decline of 7.7%[35] - Total debt as of December 31, 2024, was 26,944million,aslightdecreasefrom26,944 million, a slight decrease from 27,472 million in 2023[51] - The company reported a net increase in debt of 1,242millionfortheyearendedDecember31,2024,comparedtoadecreaseof1,242 million for the year ended December 31, 2024, compared to a decrease of 3,788 million in 2023[48] Research and Development - Research and development expenses for Q4 2024 were 238million,downfrom238 million, down from 275 million in Q4 2023, a decrease of 13.5%[33] - Research and development expenses for the year ended December 31, 2024, were 924million,adecreaseof11.3924 million, a decrease of 11.3% from 1,041 million in 2023[42] Restructuring and Adjustments - The company incurred restructuring expenses of 24millioninQ42024,comparedto24 million in Q4 2024, compared to 59 million in Q4 2023, reflecting a reduction of 59.3%[33] - The company reported restructuring expenses of 118millionfortheyear,withadjustmentsimpactingincomebeforeincometaxtotaling118 million for the year, with adjustments impacting income before income tax totaling 97 million[55] - The company has revised prior periods' results due to an overstatement of equity in income of unconsolidated subsidiaries by 96millionin2023and96 million in 2023 and 67 million in the first half of 2024[22] Foreign Exchange and Other Impacts - The company experienced a foreign exchange loss of 8millionin2024,comparedtoagainof8 million in 2024, compared to a gain of 105 million in 2023[50]