CNH Industrial N.V. Reports Second Quarter 2024 Results

Core Insights - CNH Industrial reported a 16% decline in consolidated revenue for Q2 2024, totaling $5.49 billion, compared to$6.57 billion in Q2 2023, primarily due to lower industry demand [1][30] - Net income decreased to $438 million, with diluted earnings per share (EPS) of$0.34, down from $710 million and$0.52 in the same quarter last year [1][30] - The company anticipates continued weakness in global industry retail sales for agriculture and construction equipment in the second half of 2024 [8][34] Financial Performance - Adjusted net income for Q2 2024 was $485 million, with adjusted diluted EPS of$0.38, compared to $711 million and$0.52 in Q2 2023 [2][30] - Gross profit margin decreased to 24.4% from 27.0% in Q2 2023, attributed to lower production volume and unfavorable product mix [4][30] - Industrial Free Cash Flow generation was $140 million in Q2 2024, a decrease from previous periods [1][30] Segment Performance - Agriculture segment net sales fell by 20$3.91 billion, driven by lower shipment volumes and reduced dealer inventory requirements [3][36] - Construction segment net sales decreased by 16% to $890 million, primarily due to lower volumes across all regions [5][38] - Financial Services segment revenue increased by 19$1.37 billion, with net income rising by 37% to $209 million [11][30] Cost Management and Outlook - The company is implementing cost reduction programs aimed at improving through-cycle margins, with a target of achieving a 10-15% reduction in total labor and non-labor SG&A expenses [8][35] - Full-year guidance has been updated to reflect weaker market conditions, with agriculture segment net sales expected to decline between 15% and 20% year-over-year [40][34] - The adjusted EBIT margin for the agriculture segment is projected to be between 13.0% and 14.0% [40]