CNH Industrial SEC Filings

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

Equity in Income of Unconsolidated Subsidiaries and Affiliates

Equity in income of unconsolidated subsidiaries and affiliates totaled $66 million and $5 million for the nine months ended September 30, 2017 and 2016, respectively. The nine months ended September 30, 2016 included a negative impact of $28 million incurred by the joint venture Naveco Ltd due to its exit from a line of business.

Net Income

Net income was $353 million for the nine months ended September 30, 2017, a $698 million increase over the nine months ended September 30, 2016. The $345 million net loss in 2016 included a non-tax deductible charge of $551 million resulting from the European Commission settlement.

Industrial Activities and Business Segments

The following tables show revenues and operating profit by segment. We have also included a discussion of our results by Industrial Activities and each of our business segments.

 

 

Nine Months Ended September 30,

 

 

 

2017

 

 

2016

 

 

% Change

 

 

% Change Excl. FX

 

 

 

(in millions, except percentages)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural Equipment

 

$

7,890

 

 

$

7,291

 

 

 

8.2

%

 

 

6.8

%

Construction Equipment

 

 

1,841

 

 

 

1,726

 

 

 

6.7

%

 

 

5.9

%

Commercial Vehicles

 

 

7,203

 

 

 

6,754

 

 

 

6.6

%

 

 

6.6

%

Powertrain

 

 

3,213

 

 

 

2,755

 

 

 

16.6

%

 

 

16.8

%

Eliminations and other

 

 

(1,777

)

 

 

(1,539

)

 

n.m.

 

 

n.m.

 

Total net sales of Industrial Activities

 

 

18,370

 

 

 

16,987

 

 

 

8.1

%

 

 

7.5

%

Financial Services

 

 

1,205

 

 

 

1,173

 

 

 

2.7

%

 

 

0.8

%

Eliminations and other

 

 

(316

)

 

 

(286

)

 

n.m.

 

 

n.m.

 

Total revenues

 

$

19,259

 

 

$

17,874

 

 

 

7.7

%

 

 

7.0

%

n.m. – not meaningful

 

 

Nine Months Ended September 30,

 

 

 

2017

 

 

2016

 

 

$ Change

 

 

 

(in millions)

 

Operating profit:

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural Equipment

 

$

670

 

 

$

546

 

 

$

124

 

Construction Equipment

 

 

8

 

 

 

32

 

 

 

(24

)

Commercial Vehicles

 

 

178

 

 

 

202

 

 

 

(24

)

Powertrain

 

 

260

 

 

 

171

 

 

 

89

 

Eliminations and other

 

 

(65

)

 

 

(72

)

 

 

7

 

Total operating profit of Industrial Activities

 

 

1,051

 

 

 

879

 

 

 

172

 

Financial Services

 

 

365

 

 

 

363

 

 

 

2

 

Eliminations and other

 

 

(248

)

 

 

(244

)

 

 

(4

)

Total operating profit

 

$

1,168

 

 

$

998

 

 

$

170

 

Net sales of Industrial Activities were $18,370 million for the nine months ended September 30, 2017, up 8.1% (up 7.5% on a constant currency basis) from the nine months ended September 30, 2016. Net sales of Industrial Activities increased in all segments.

Operating profit of Industrial Activities was $1,051 million for the nine months ended September 30, 2017, a $172 million increase from the nine months ended September 30, 2016. For the nine months ended September 30, 2017, operating margin was 5.7%, up 0.5 p.p. compared to the nine months ended September 30, 2016. Operating profit of Industrial Activities was primarily impacted by positive performance of Agricultural Equipment and Powertrain.

 

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