On May 5, 2023, CNH Industrial reported first quarter consolidated revenues of $5,342 million (up 15% compared to Q1 2022) Net income of $486 million and Adjusted Net Income of $475 million, with diluted EPS and adjusted diluted EPS of $0.35 (adjusted diluted EPS of $0.28 in Q1 2022) Net cash used by operating activities of $701 million and Industrial Free Cash Flow absorption of $673 million Net sales for Industrial Activities of $4,776 million (up $596 million compared to Q1 2022) Net sales guidance for FY 2023 updated to an increase of 8-11% vs. 2022 on strong North America row crop demand, continued pricing strength and a solid order backlog
In a note to investors, Stanley Elliott, managing director with Stifel, said,"1Q23 results were above expectations helped by continued strength in pricing and large ag ... While the large ag demand outlook remains strong, CNHI also highlighted destocking in the small ag channel after demand and dealer inventories have rapidly normalized. Importantly, CNHI highlighted benefits from its strategic cost initiatives ramping into 2024 with 'hundreds of millions' of the $550 million total benefit expected to occur next year. We are maintaining our Hold rating, but remain pleased with CNHI’s commitment to precision ag investments. Most notably, this includes the recent acquisition of Augmenta which should accelerate smart sprayer commercialization, the most exciting and largest opportunity within precision ag, in our view."
Elliott also noted that CNH has hired over 500 tech engineers since its acquisition of Raven to further develop its precision ag offerings.
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