CNH Industrial SEC Filings

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

Commercial Vehicles reported operating profit of $178 million for the nine months ended September 30, 2017 compared to $202 million for the nine months ended September 30, 2016. Operating margin decreased 0.5 p.p. to 2.5% primarily due to lower volume and unfavorable mix in EMEA and unfavorable impact of currency translation in the UK, partially offset by manufacturing efficiencies. In LATAM, operating profit improved primarily due to higher industry volumes and positive net price realization. In APAC, operating profit was up primarily due to positive volume and mix in the truck, bus, and firefighting businesses.

Powertrain

Net Sales

Powertrain net sales were $3,213 million for the nine months ended September 30, 2017, an increase of 16.6% (up 16.8% on a constant currency basis) compared to the nine months ended September 30, 2016, due to higher volumes in EMEA and APAC. Sales to external customers accounted for 47% of total net sales compared to 46% in 2016.

During the nine months ended September 30, 2017, Powertrain sold approximately 455,300 engines, an increase of 13% over the nine months ended September 30, 2016. In terms of major customers, 26% of engine units were supplied to Commercial Vehicles, 19% to Agricultural Equipment, 3% to Construction Equipment and the remaining 52% to external customers. Additionally, Powertrain delivered approximately 54,100 transmissions, a decrease of 9% compared to the nine months ended September 30, 2016, and 146,500 axles, flat compared to the nine months ended September 30, 2016.

Operating Profit

For the nine months ended September 30, 2017, Powertrain’s operating profit was $260 million, up $89 million compared to the nine months ended September 30, 2016, with an operating margin of 8.1%, up 1.9 p.p. over 2016. The improvement was mainly due to higher volumes and manufacturing efficiencies.

Financial Services Performance

Finance and Interest Income

Financial Services reported revenues of $1,205 million for the nine months ended September 30, 2017, an increase of 2.7% compared to the nine months ended September 30, 2016 (up 0.8% on a constant currency basis) primarily due to higher activity in LATAM and APAC.

Net Income

Net income of Financial Services was $260 million for the nine months ended September 30, 2017, a $9 million increase over the nine months ended September 30, 2016 due to the higher activity in LATAM and APAC, lower provisions for credit losses and the positive impact of currency translation partially offset by reduced interest spreads.

Retail loan originations in the nine months ended September 30, 2017 were $6.5 billion, relatively flat compared to the prior year period. The managed portfolio (including unconsolidated joint ventures) increased $1.2 billion (flat on a constant currency basis) from December 31, 2016 to $26.0 billion as of September 30, 2017, of which retail was 63% and wholesale was 37%.

 

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