CNH Industrial(US:CNHI)2024-05-06 20:13Share Buyback and Capital Management - CNH announced a $1 billion share buyback program that expired on March 1, 2024, and a new $500 million buyback program was authorized in February 2024[13]. - A total of 48,612,288 shares were repurchased under the buyback programs from January 1, 2024, to March 31, 2024, at an average price of $11.95 per share[13]. - As of March 31, 2024, approximately $470,091,739 worth of shares may yet be purchased under the buyback plans[13]. - The company reported a cash outflow of $581 million related to the share buyback program[27]. Debt and Financing - The company has outstanding bonds totaling $3,909 million, with various maturities and coupon rates[25]. - CNH Industrial Capital LLC has issued bonds totaling $5,544 million, with various coupon rates and maturities[25]. - The company has a bond listed on the New York Stock Exchange with a face value of $500 million and a coupon rate of 3.850%, maturing on November 15, 2027[24]. - As of March 31, 2024, total debt was $27,850 million, an increase from $27,472 million as of December 31, 2023[27]. - The company entered into a new multicurrency revolving credit agreement providing for an unsecured, committed revolving credit facility of €3.25 billion, with an option to increase by an additional €500 million[150]. Financial Performance - Total revenues for Q1 2024 were $4,818 million, a decrease of 9.8% from $5,342 million in Q1 2023[42]. - Net income for Q1 2024 was $402 million, down 17.3% from $486 million in Q1 2023[45]. - Basic earnings per share for Q1 2024 were $0.32, compared to $0.36 in Q1 2023, reflecting an 11.1% decline[42]. - Cash flows from operating activities were negative at $(894) million for Q1 2024, compared to $(701) million in Q1 2023[49]. - The company reported a restructuring expense of $31 million in Q1 2024, significantly higher than $1 million in Q1 2023[42]. Assets and Liabilities - Total assets decreased to $45,726 million from $46,351 million at the end of 2023, a reduction of 1.4%[40]. - Total liabilities decreased to $37,714 million from $38,117 million at the end of 2023, a decline of 1.1%[40]. - Cash and cash equivalents decreased to $3,236 million as of March 31, 2024, from $4,322 million at December 31, 2023[27]. - The company reported total retained earnings of $10,151 million, an increase from $9,750 million at December 31, 2023[52]. Revenue Breakdown - Revenue from agricultural sales was $3,373 million, down from $3,927 million, while construction revenue decreased to $758 million from $849 million[64]. - Financial services revenue increased to $685 million, up from $549 million year-over-year[64]. - Agriculture segment net sales totaled $3,373 million for the three months ended March 31, 2024, a decline of 14.1% compared to the same period in 2023[182]. - Construction net sales were $758 million for the three months ended March 31, 2024, down 10.7% year-over-year[184]. Credit and Receivables - The total allowance for credit losses was $330 million for retail and $50 million for wholesale, reflecting an increase in retail reserves primarily in South America[85]. - The total past due receivables were reported at $43 million, with 41 million in the 31-60 days past due category and 2 million in the 61-90 days past due category[90]. - The aging of financing receivables indicates that the majority of non-performing receivables are generally 90 days past due[88]. - The receivables balance greater than 30 days past due was 1.7% as of March 31, 2024, compared to 1.4% a year earlier[188]. Legal and Risk Factors - The company reported no material changes in risk factors from the previous annual report[12]. - There were no significant legal proceedings reported that could impact the financial condition of the company[11]. - The company is exposed to various legal risks, including product liability and environmental risks[28]. - Forward-looking statements indicate potential risks including economic conditions, supply chain disruptions, and geopolitical events[30]. Other Financial Metrics - The effective tax rate for the three months ended March 31, 2024, was 19.2%, a decrease from 27.6% in the same period of 2023[70]. - Interest expense rose to $394 million, up from $272 million, primarily due to higher rates and outstanding debt[166]. - The company recorded amortization expense of $45 million for the three months ended March 31, 2024, compared to $38 million for the same period in 2023[102]. - The total notional amount of foreign exchange derivatives was $5.4 billion as of March 31, 2024, down from $6.1 billion at December 31, 2023, representing a decrease of approximately 11.5%[124].