CNH Industrial(US:CNHI)2023-05-08 16:00Financial Performance - Total revenues for the three months ended March 31, 2023, were $5,342 million, an increase of 15% compared to $4,645 million for the same period in 2022[33]. - Net income for the first quarter of 2023 was $486 million, up from $336 million in the same quarter of 2022, representing a 44.6% increase[36]. - The agriculture segment generated revenues of $3,927 million for the three months ended March 31, 2023, compared to $3,377 million in the same period of 2022, marking a 16.3% increase[33]. - The construction segment reported revenues of $849 million for the first quarter of 2023, up from $803 million in the same quarter of 2022, a growth of 5.7%[33]. - Revenues from sales of goods reached $4,767 million, up from $4,174 million, reflecting a growth of 14.2% year-over-year[48]. - Total revenues from sales of goods and services amounted to $4,776 million, compared to $4,180 million in the previous year, indicating a 14.2% increase[48]. - Total retail revenues for the company reached $11,673 million, with a total of 83 charge-offs reported[53]. - Total retail revenue for 2022 reached $11,446 million, an increase from $11,338 million in 2021, representing a growth of 0.96%[54]. - Net income for the three months ended March 31, 2023, was $408 million, compared to $336 million for the same period in 2022, reflecting a year-over-year increase of about 21%[105]. - Financial Services Net Income was $78 million for the three months ended March 31, 2023, compared to $82 million in the same period of 2022[137]. Assets and Liabilities - Total assets increased to $40,566 million as of March 31, 2023, compared to $39,381 million at December 31, 2022, reflecting a growth of 3%[20]. - Total liabilities rose to $33,115 million as of March 31, 2023, compared to $32,405 million at December 31, 2022, an increase of 2.2%[20]. - Cash and cash equivalents decreased to $3,213 million as of March 31, 2023, down from $4,376 million at December 31, 2022, a decline of 26.6%[20]. - The company reported total costs and expenses of $4,716 million for the three months ended March 31, 2023, compared to $4,171 million for the same period in 2022, marking an increase of approximately 13%[105]. - Total debt, including payables to the Iveco Group, increased to $23,609 million as of March 31, 2023, compared to $23,118 million at December 31, 2022[110]. - The aggregate of cash and cash equivalents, restricted cash, undrawn facilities, and other current financial assets totaled $9,676 million as of March 31, 2023, down from $10,632 million at December 31, 2022[108]. - The balance of warranty and accruals for campaign programs at the end of March 2023 was $551 million, up from $501 million at the end of March 2022, representing a 9.96% increase[61]. Cash Flow and Operating Activities - Net cash used in operating activities improved to $(701) million from $(887) million year-over-year[37]. - Cash and cash equivalents and restricted cash at the end of the period were $4,005 million, slightly down from $4,061 million at the end of the previous year[37]. - Cash and cash equivalents decreased to $3,213 million from $4,376 million, a decline of 26.6%[140]. - Net cash (debt) position worsened to $(18,984) million from $(17,434) million, indicating a decline in liquidity[140]. - The company is focusing on cash preservation and leveraging its access to funding to maintain financial strength and liquidity[141]. Acquisitions and Investments - The company acquired Augmenta Holding SAS for approximately $79 million and Bennamann LTD for approximately $51 million in March 2023[41]. - The company recorded preliminary goodwill of $76 million and intangible assets of $35 million from the Augmenta acquisition[41]. - The Company recorded $81 million in intangible assets from the Augment and Bennamann acquisitions during Q1 2023, with asset valuations still pending finalization[70]. Research and Development - Research and development expenses increased to $231 million in Q1 2023 from $184 million in Q1 2022, indicating a focus on innovation[93]. - Research and development expenses for the three months ended March 31, 2023, were $231 million, up from $184 million in the same period of 2022, indicating a focus on innovation[105]. Market and Strategic Focus - The company is focused on expanding its market presence and enhancing its product offerings through new technologies and strategic initiatives[52]. - North America sales increased by 26.5% to $1,488 million in Q1 2023, contributing significantly to overall revenue growth[99]. - The company has exposure to various legal risks, which could potentially impact its financial position and results, although the reasonable possible range of losses is not expected to have a material effect on financial statements[61]. - CNH Industrial is exposed to various legal risks, including product liability and environmental risks, which may impact future operations[147]. Other Financial Metrics - Adjusted EBIT for Q1 2023 was $570 million, an increase of $144 million compared to $426 million in Q1 2022, with an adjusted EBIT margin of 14.5%[100]. - The effective tax rate for Q1 2023 was 27.6%, down from 33.5% in Q1 2022, influenced by discrete tax expenses from prior periods[97]. - The total performing loans for North America in 2023 were $7,160 million, while non-performing loans were $650 million[53]. - The total notional amount of interest rate derivatives was approximately $7.4 billion as of March 31, 2023, compared to $6.4 billion at December 31, 2022, reflecting a growth of 15.6%[66]. - The receivables balance greater than 30 days past due was 1.4% as of March 31, 2023, slightly up from 1.3% in the previous year[103]. - Other net expenses were $163 million for the three months ended March 31, 2023, down from $183 million in the same period of 2022[130]. - Foreign exchange losses for Industrial Activities were $6 million for the three months ended March 31, 2023, compared to $13 million in the same period of 2022[137].