CNH Industrial (CNHI) Q3 Earnings In Line With Estimates
Zacks Investment Research | Nov 06, 2019 08:03PM ET
CNH Industrial N.V.’s (NYSE:CNHI) third-quarter 2019 adjusted earnings per share of 16 cents met the Zacks Consensus Estimate. The figure was flat year over year.
Adjusted net income of $221 million was flat year over year, mainly due to lower interest expenses and a drop in adjusted effective tax rate.
Consolidated revenues declined 4.9% from the year-ago quarter’s level to $6.36 billion and missed the Zacks Consensus Estimate of $6.51 billion. The decline was mainly led by lower revenues in the Agricultural Equipment, Construction Equipment, Commercial and Specialty vehicles, and Powertrain segments.
The company’s net sales for Industrial Activities were $5.9 billion and adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $523 million in the quarter due to lower sales volume and negative currency translation.
Segmental Performances
Net sales at the Agricultural Equipment segment declined 7.2% year over year to $2.45 billion in the quarter, due to industry volume deceleration combined with an unfavorable product mix, primarily in North America. Moreover, the segment’s adjusted EBIT was $152 million, down by $44 million from the year-ago quarter’s tally, mainly owing to higher product costs as a result of increased raw material cost and tariffs.
Construction Equipment segment’s sales declined 8.5% year over year to $664 million in third-quarter 2019. The decrease was mainly because of lower production and sales volume in North America to rebalance channel inventory. Further, the adjusted EBIT was down to $10 million from $26 million recorded in the year-ago quarter, owing to higher raw material cost and tariffs.
In the third quarter, revenues in Commercial and Specialty vehicles fell 3% year over year to $2.33 billion due to lower volumes of truck and bus in Europe and exceptionally-low industry demand in Argentina. The segment’s adjusted EBIT was $70 million, up from $68 million recorded in the prior-year quarter on gains realized from the access granted to Nikola Corporation to Iveco technology.
The Powertrain segment’s third-quarter revenues declined 3.3% year over year to $940 million. The segment’s adjusted EBIT was $81 million compared with $82 million in the third quarter of 2018, primarily aided by an unfavorable mix of engine sales and increased product development activity in order to support the segment’s electrification and alternative propulsion strategy.
Revenues at the Financial Services segment rose 3.8% year over year to $487 million in the third quarter of 2019. Adjusted EBIT was $117 million, down $6 million from the prior-year quarter’s figure.
CNH Industrial N.V. Price and Consensus
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