CNH Industrial(US:CNHI)2024-11-08 11:34Financial Performance - Consolidated revenue for Q3 2024 was $4.65 billion, a decline of 22% compared to Q3 2023[2] - Adjusted net income for Q3 2024 was $304 million, down 44% from $540 million in Q3 2023[1] - Adjusted diluted EPS for Q3 2024 was $0.24, a decrease of 40% from $0.40 in Q3 2023[2] - Net income attributable to CNH Industrial N.V. for Q3 2024 was $306 million, a decline of 43% from $537 million in Q3 2023[20] - Basic earnings per share for Q3 2024 were $0.24, compared to $0.40 in Q3 2023, reflecting a 40% decrease[20] - Total revenues for Q3 2024 were $4,024 million, a decrease of 13.5% compared to $4,654 million in Q3 2023[23] - Net income for Q3 2024 was $232 million, down from $310 million in Q3 2023, representing a decline of 25.2%[23] - 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[20] - Net income for the nine months ended September 30, 2024, was $796 million, compared to $1,083 million in the same period of 2023, a decrease of 26.5%[24] Segment Performance - Agriculture segment net sales decreased by 24% to $3.31 billion in Q3 2024, primarily due to lower shipment volumes[4] - Construction segment net sales fell by 28% to $687 million in Q3 2024, driven by decreased market demand[5] - Full year 2024 guidance for Agriculture segment net sales has been revised down to a decline of 22% to 23% year-over-year[7] - Financial Services revenue increased by 1% to $659 million in Q3 2024, with net income of $78 million, a decrease of 9% from Q3 2023[6] Cash Flow and Liquidity - Free cash flow of Industrial Activities in Q3 2024 was an outflow of $180 million, compared to an outflow of $127 million in Q3 2023[1] - Cash and cash equivalents decreased to $1,801 million as of September 30, 2024, from $4,322 million at the end of 2023[21] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $276 million, compared to a cash outflow of $608 million in the same period of 2023[22] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(2,595) million for the nine months ended September 30, 2024[22] - Cash flows from operating activities showed a net cash used of $885 million for the nine months ended September 30, 2024, compared to a net cash provided of $1,266 million for the same period in 2023[26] - Cash and cash equivalents for Industrial Activities stand at $1,358 million, compared to $3,532 million in December 2023, indicating a significant reduction[25] Assets and Liabilities - Total assets decreased to $44,033 million as of September 30, 2024, down from $46,267 million at the end of 2023[21] - Total liabilities decreased to $36,264 million as of September 30, 2024, from $38,117 million at the end of 2023[21] - Total debt as of September 30, 2024, was $27,348 million, slightly down from $27,472 million as of December 31, 2023[29] - Financing receivables, net, are reported at $24,062 million, a decrease from $24,249 million, indicating a tightening in credit availability[25] Operational Efficiency - Adjusted EBIT margin for Industrial Activities was 8.4% in Q3 2024, down from 11.8% in Q3 2023[1] - Adjusted EBIT for Industrial Activities segments was $336 million for the three months ended September 30, 2024, down from $642 million in the same period of 2023, representing a decline of 47.6%[27] - Total Adjusted EBIT of Industrial Activities for the nine months ended September 30, 2024, was $1,210 million, down from $1,972 million in the same period of 2023, a decrease of 38.7%[27] Future Outlook - The company expects to continue monitoring economic conditions and geopolitical events that may impact future performance, emphasizing the uncertainty in predicting financial outcomes[15] - The company plans to focus on restructuring efforts to improve operational efficiency and financial performance moving forward[28] - The company forecasts adjusted diluted EPS for 2024 to be between $1.05 and $1.15, revised down from $1.30 to $1.40[7] Revisions and Adjustments - CNH reported a revision in prior periods' results due to an overstatement of equity in income from unconsolidated subsidiaries by $96 million in 2023 and $67 million in the first half of 2024[12] - The total impact of revisions across FY 2023 resulted in a decrease of $96 million in net income[36] - The total assets as of December 31, 2023, were revised to $46,267 million, down from the previously reported $46,351 million due to adjustments in investments in unconsolidated subsidiaries[34]