CNH Industrial Reports Record Net Income for Q2 2023

Aug 03, 2023

In its earnings release for Q2 2023, CNH Industrial reported net income of $710 million, up 29% year-over-year from $552 million in Q2 2022, which the company said was a record high. Diluted earnings per share were up 30% year-over-year to $0.52. Adjusted net income was $711 million, with adjusted diluted earnings per share of $0.52.

Net sales of Industrial Activities, which encompasses the company’s agriculture and construction segments, were up 6% year-over-year to $5.95 billion, mainly due to favorable price realization, offsetting adverse currency conversion impacts, CNH Industrial said.

For ag equipment alone, net sales were $4.89 billion, an increase of 4% over the same period last year due to favorable price realization, partially offset by lower volume. In North America, industry volume for tractors over 140 HP was up 21% year-over-year and was down 8% for tractors under 140 HP. Combines were up 27% from prior year.

Gross profit margin of Industrial Activities was 25.0% versus 22.0% in Q2 2022, a result of favorable price realization and improving operating performance of CNH Industrial’s production system. For the ag equipment segment, gross profit margin was 27.0% compared to 23.4% in Q2 2022, which CNH Industrial CEO Scott W. Wine called a record.

For the 6 months ended June 30, 2023, the company reported consolidated revenues of $11.9 billion, an increase of 11% year-over-year and 13% at constant currency. Net income for the first half was up 35% year-over-year to $1,196 million, with adjusted diluted earnings per share of $0.87, an increase of 35%.

Regarding its Industrial Activities, CNH Industrial reaffirmed its outlook for 2023 of net sales being up 8-11% year-over-year, including the effects of currency translation.

Source : Farm Equipment

Video: When is Sustainable Packaging Coming in the Canadian Agri Food Industry? 3 Critical Perspectives

Canada’s regulatory landscape on single-use plastics is complex but a recent ruling by the Federal Court of Appeal sided with the government’s intent to eliminate single-use plastics. What does this mean for the Canadian agri-food industry? How can companies find the right balance between regulatory compliance and implementing costly alternative solutions? What are retailers and consumers saying about sustainable packaging? This webinar features Joshua Goodman, Head of Corporate Sustainability, Sobeys; Marie-Anne Champoux-Guimond, Director of Sustainability, Keurig Dr Pepper Canada and Glenford Jameson, Canadian Food Lawyer, G.S. Jameson and Company

This 60-minute webinar brings together three industry leaders to examine the opportunities, challenges, and realities of the path forward. In this session, you will gain insights into:

•Canada’s regulatory roadmap and timeline on eliminating single-use plastics

•Current end-of-life solutions for plastics and alternative packaging solutions

•The need to have a corporate strategy that aligns with reality at the retail shelves

•How major brands and retailers are pivoting

•Supply chain considerations

•Common misconceptions