CNH Industrial Q1: 15% revenue growth, better profits, three key…

CNH Industrial Q1: 15% revenue growth, better profits, three key…

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  • CNH Industrial NV CNHI reported fiscal 23 first quarter revenue growth of 15% year-on-year to $5.34 billion, +17% on a constant currency basis, beat the consensus of $5.08 billion.
  • Adjusted earnings per share improved to $0.35 from $0.28 in 1Q22, beating the consensus of $0.32.
  • Net sales from Industrial Activities were $4.78 billion, an increase of 14.3% year-on-year, primarily due to favorable pricing and higher sales volumes, which offset more than 2% of adverse currency translation effects.
  • Adjusted gross profit margin of Industrial Activities increased 220 basis points to 24.4%. Adjusted EBIT margin of Industrial Activities up 130 basis points to 11.6%.
  • CNH Industrial net cash burned from operations was $(701) million for the quarter compared to $(887) million in the prior year. Industrial Activities free cash flow absorption was $(673) million.
  • The company has $3.21 billion in cash and cash equivalents at the end of the first quarter.
  • “Our construction output is progressing well, particularly in North America where the backlog is supporting continued growth. We announced three key acquisitions this quarter that strengthen our strong precision agriculture and alternative fuels portfolios. Our lean corporate and strategic sourcing programs create a simpler and more effective business,” commented Scott W. Wine, Chief Executive Officer.
  • FY23 outlook, raised: CNH Industrial sees an 8% to 11% increase in net sales from its industrial operations (previous view 6%-10%), including currency translation effects.
  • Free cash flow from industrial activities is still expected to be between $1.3 billion and $1.5 billion.
  • also read: CNH Industrial acquires core satellite navigation technology in $175 million deal
  • Price promotion: CNHI shares trade 2.71% higher at $14.00 on the last check Friday.



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