CNH Industrial(US:CNHI)2023-08-01 16:00Financial Performance - Net sales for Q2 2023 reached $5,954 million, an increase from $5,613 million in Q2 2022, representing a growth of 6.1%[27] - Total revenues for the first half of 2023 were $11,909 million, compared to $10,727 million in the same period of 2022, reflecting a year-over-year increase of 11.0%[27] - Net income attributable to CNH Industrial N.V. for Q2 2023 was $706 million, up from $548 million in Q2 2022, marking a 28.8% increase[28] - Basic earnings per share for Q2 2023 were $0.53, compared to $0.40 in Q2 2022, indicating a growth of 32.5%[24] - The company reported a comprehensive income of $776 million for Q2 2023, compared to $592 million in Q2 2022, indicating a growth of 31.1%[28] - Total revenues for the three months ended June 30, 2023, were $6,567 million, an increase of 8% compared to $6,082 million for the same period in 2022[37] - For the six months ended June 30, 2023, total revenues reached $11,909 million, up 11% from $10,727 million in the prior year[37] - Net income for the three months ended June 30, 2023, was $333 million, with a comprehensive income of $130 million[30] - Net income for the three months ended June 30, 2023, was $710 million, an increase of 28.7% compared to $552 million for the same period in 2022[134] Expenses and Costs - Research and development expenses for Q2 2023 totaled $269 million, an increase from $212 million in Q2 2022, representing a rise of 26.8%[27] - Selling, general and administrative expenses decreased to $10 million for the three months ended June 30, 2023, from $12 million in the same period of 2022, a reduction of 16.7%[142] - Cost of goods sold for the three months ended June 30, 2023, was $279 million, up from $243 million in the same period of 2022, indicating a 14.8% increase[144] - Interest expense for Q2 2023 was $323 million, significantly higher than $162 million in Q2 2022[157] - Interest expense for the six months ended June 30, 2023, was $595 million, compared to $300 million in the same period of 2022[199] Assets and Liabilities - CNH Industrial's total assets as of June 30, 2023, were $9,658 million, compared to $9,403 million at the end of 2022, showing an increase of 2.7%[23] - Total liabilities stood at $8,739 million as of June 30, 2023, up from $8,485 million at the end of 2022, reflecting a growth of 3.0%[23] - The total of other liabilities increased to $5,417 million as of June 30, 2023, compared to $4,847 million as of December 31, 2022, reflecting an increase of 11.7%[67] - The company’s retained earnings increased to $6,282 million as of January 1, 2022, following a demerger of the Iveco Group[30] Financing and Receivables - As of June 30, 2023, total financing receivables amounted to $12.683 billion, an increase from $11.348 billion as of December 31, 2022, representing an increase of approximately 11.7%[50] - Retail note and finance lease receivables were $6.581 billion as of June 30, 2023, down from $6.766 billion as of December 31, 2022, indicating a decrease of about 2.7%[50] - Wholesale receivables increased significantly to $6.102 billion as of June 30, 2023, compared to $4.582 billion as of December 31, 2022, reflecting a growth of approximately 33.1%[50] - The total performing receivables as of June 30, 2023, were $12.151 billion, with non-performing receivables totaling $61 million[56] - The company is actively monitoring the credit quality of its financing receivables, with a focus on managing delinquency rates and non-performing loans[56] Acquisitions and Investments - The company acquired Augmenta Holding SAS for approximately $79 million, enhancing its technology portfolio[17] - The company recorded goodwill increases of $76 million and $118 million from the acquisitions of Augmenta Holding SAS and Bennamann LTD, respectively, in Q1 2023[65] - The company’s equity method investments increased to $352 million as of June 30, 2023, up from $331 million as of December 31, 2022[55] Segment Performance - Revenues from the agriculture segment for the three months ended June 30, 2023, were $4,890 million, a 3.6% increase from $4,722 million in the same period of 2022[135] - Revenues from the construction segment for the three months ended June 30, 2023, were $1,064 million, a significant increase of 19.4% compared to $891 million in the same period of 2022[135] - Financial services revenues for the three months ended June 30, 2023, were $603 million, reflecting a 28.0% increase from $471 million in the same period of 2022[135] Market and Economic Conditions - Global industry volume for heavy construction equipment was down 9% year over year in the second quarter of 2023[191] - The company continues to focus on expanding its digital agriculture and precision technology offerings through the Raven brand, which supports autonomous systems[48] Other Financial Metrics - The company recorded fixed asset write-downs of $17 million related to the suspension of operations in Russia during the six months ended June 30, 2022[114] - The company incurred a loss of $39 million reclassified from accumulated other comprehensive income into income for the six months ended June 30, 2023[89] - The fair value of foreign exchange derivatives designated as hedging instruments was $74 million as of June 30, 2023, compared to $70 million at December 31, 2022[92]