CNH Industrial SEC Filings

6-K
CNH INDUSTRIAL N.V. filed this Form 6-K on 11/06/2017
Entire Document
 

Business Segment Performance

Agricultural Equipment

Net Sales

The following table shows Agricultural Equipment net sales by geographic region for the third quarter of 2017 compared to the third quarter of 2016:

Agricultural Equipment Sales—by geographic region:

 

 

Three Months Ended September 30,

 

(in millions, except percentages)

 

2017

 

 

2016

 

 

% Change

 

NAFTA

 

$

873

 

 

$

888

 

 

 

(1.7

)%

EMEA

 

 

903

 

 

 

727

 

 

 

24.2

%

LATAM

 

 

417

 

 

 

350

 

 

 

19.1

%

APAC

 

 

458

 

 

 

394

 

 

 

16.2

%

Total

 

$

2,651

 

 

$

2,359

 

 

 

12.4

%

Net sales of Agricultural Equipment were $2,651 million for the third quarter of 2017, an increase of 12.4% (up 9.4% on a constant currency basis) compared to the third quarter of 2016. Net sales increased in EMEA, primarily due to improved volume for combines and low horsepower tractors and favorable net price realization. Net sales also increased in APAC, mainly in India, and in LATAM, mainly in Brazil and Argentina. Net sales in NAFTA were flat, as stable row crop market conditions and improved tractor mix were offset by reduced market demand for hay and forage products.

In our key product segments within NAFTA, the over 140 horsepower (“hp”) tractor market was down 1% while demand for combines was up 10%. Demand for under 140 hp tractors in NAFTA was down 2%. In LATAM, the tractor market increased 2% and the combine market decreased 1%. EMEA markets were up 1% and 13% for tractors and combines, respectively. APAC markets increased 22% for tractors and 1% for combines.

Agricultural Equipment’s worldwide market share performance was up for tractors and for combines mainly concentrated in the EMEA and LATAM regions. In the third quarter of 2017, Agricultural Equipment’s worldwide unit production was 5% above retail sales, mainly in support of the expected seasonal increase in demand and from dairy and livestock customers in EMEA. Production of NAFTA tractors was 4% below retail sales and combines was 16% above retail sales, respectively.

Operating Profit

Agricultural Equipment’s operating profit was $208 million for the third quarter of 2017 compared to $155 million for the third quarter of 2016. Operating margin increased 1.2 p.p. over the third quarter of 2016 to 7.8% as favorable volume and product mix, together with positive net price realization and improved quality costs, more than offset raw material cost increases and increased investments in research and development.

Construction Equipment

Net Sales

The following table shows Construction Equipment net sales by geographic region for the third quarter of 2017 compared to the third quarter of 2016:

Construction Equipment Sales—by geographic region:

 

 

Three Months Ended September 30,

 

(in millions, except percentages)

 

2017

 

 

2016

 

 

% Change

 

NAFTA

 

$

336

 

 

$

316

 

 

 

6.3

%

EMEA

 

 

130

 

 

 

128

 

 

 

1.6

%

LATAM

 

 

89

 

 

 

77

 

 

 

15.6

%

APAC

 

 

87

 

 

 

74

 

 

 

17.6

%

Total

 

$

642

 

 

$

595

 

 

 

7.9

%

 

37