CNH Industrial(CNHI) - 2024 Q2 - Quarterly Results

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]