CNH Global N.V. (NYSE: CNH)
- Second quarter Net Sales of $5.5 billion, +9% (+10% constant
currency basis)
- Agricultural equipment net sales of $4.5 billion, +13% (+13%
constant currency basis)
- Construction equipment net sales of $939 million, -6% (-5%
constant currency basis)
- Second quarter Equipment Operations' Operating Profit of $659
million, margin of 12% for the period
- Second quarter diluted EPS (before restructuring and
exceptional items) attributable to CNH common shareholders $1.93
per share, compared to $1.47 per share in the comparable period of
2012
Quarter Ended
--------------------
6/30/2013 6/30/2012 Change
--------- --------- --------
(US $ in millions, except per
share data and percentages)
Net Sales of Equipment $ 5,478 $ 5,026 9%
Equipment Operations Operating Profit $ 659 $ 524 26%
Equipment Operations Operating Margin 12.0% 10.4% 1.6 pts
Net Income Attributable to Fin. Services $ 104 $ 78 33%
Net Income Attributable to CNH $ 471 $ 355 33%
Net Income Before Restructuring and
Exceptional Items $ 473 $ 356 33%
Diluted EPS Before Restructuring and
Exceptional Items $ 1.93 $ 1.47 31%
CNH Global N.V. (NYSE: CNH) today announced financial results
for the quarter ended June 30, 2013. Net sales for the quarter
increased 9% (10% on a constant currency basis) to $5.5 billion.
Equipment Operations posted an operating profit of $659 million or
12% of net sales for the quarter, as increased volumes and positive
net pricing in the agricultural equipment segment more than
compensated for the reduction in volume in the construction
equipment segment, higher selling, general and administrative
expenditures and higher research and development expense. The 33%
effective tax rate for the quarter is within the Group's full year
2013 forecast range of 31% to 34%.
Equipment net sales in the quarter comprised 83% agricultural
equipment and 17% construction equipment. The geographic
distribution of net sales in the quarter was 43% North America, 32%
EAME & CIS, 17% Latin America, and 8% APAC markets.
Equipment Operations generated $856 million in operating cash on
a year-to-date basis, an increase of $575 million from the same
period in 2012. This improvement is a result of the increase in
earnings for the period, and strong working capital management.
Through the second quarter, capital expenditures totaled $192
million, as the Company continues to implement its strategic plan
of investments in new manufacturing sites and an enhanced product
portfolio. Capital expenditures for new product launches (inclusive
of interim and final Tier 4 emission compliant equipment)
represented 31% of the total CAPEX. CNH's Equipment Operations
ended the period with a net cash position of $3.6 billion.
Net income, before restructuring and exceptional items, was $473
million for the quarter, an increase of 33%, driven by continued
solid market conditions in the agricultural equipment sector,
satisfactory industrial performance, and improved results from the
Group's financial services business. This resulted in the Group
generating diluted earnings per share of $1.93 (before
restructuring and exceptional items), up 31% compared to $1.47 per
share for the second quarter of 2012.
2013 Full Year Market Outlook
- Agricultural equipment unit volume is expected to be up
approximately 5%
- Construction equipment unit volume is expected to be flat to
down 5%
CNH Guidance For The Full Year 2013
- Revenues up ~5%
- Operating Margin between 8.5% and 9.0%
SEGMENT RESULTS Agricultural Equipment
Quarter Ended
--------------------
6/30/2013 6/30/2012 Change
--------- --------- --------
(US $ in millions, except
percentages)
Net Sales of Equipment $ 4,539 $ 4,025 13%
Gross Profit $ 1,085 $ 915 19%
Gross Margin 23.9% 22.7% 1.2 pts
Operating Profit $ 647 $ 507 28%
Operating Margin 14.3% 12.6% 1.7 pts
CNH Agricultural Equipment Second Quarter
Results CNH's agricultural equipment second quarter net sales
increased 13% (13% on a constant currency basis) driven by
increased volume, positive net pricing, and favorable product mix.
All of the Group's geographic regions except APAC reported
increased revenue. Operating profit increased by $140 million to
$647 million yielding an operating margin of 14.3%, up 1.7
percentage points compared to the second quarter of 2012.
CNH worldwide production of agricultural equipment was 7% above
retail sales in the quarter in anticipation of scheduled
maintenance and repair downtime scheduled for the 3rd quarter in
NAFTA and EAME.
Case IH launched the 370 CVX Magnum, the most powerful model in
the Case IH range of conventional, rigid-chassis tractors, in the
EAME region in April at Bauma in Germany. Case IH launched three
new Maxxum EP (Efficient Power) tractors at Cereals 2013 in the UK,
extending the company's use of its CVT technology into the
four-cylinder, medium-power class. Case IH also announced two new
RB 5 Series variable-chamber round balers at Cereals 2013.
The Case IH multi row A8800 -- the first sugarcane harvester
with variable row spacing -- was awarded the Gold Gerdau "Best of
the Land" Trophy for best new product at the Agrishow in Ribeirao
Preto, Brazil.
In EAME & CIS region, at the Moroccan SIAM fair, New Holland
Agriculture launched the new TD5 tractor series. The new 2WD
version of the TDF orchard tractor series, specially designed for
the South African market, was officially introduced to the public
at the NAMPO Harvest Day. The three models have reduced front wheel
track width and power ranging from 65 to 80 horsepower. In North
America, New Holland also launched the latest generation CX8000
Elevation Super Conventional combines, the world's most powerful
strawwalker combine. The Genesis T8 tractor, equipped with Auto
Command CVT, has been also introduced to the market. In Latin
America, at the Agrishow, New Holland introduced the redesigned TL
tractor series with engine power ranging from 65 to 104
horsepower.
In APAC, on June 18th, New Holland Agriculture celebrated the
milestone of the 250,000th tractor manufactured at its Greater
Noida facility, India.
Construction Equipment
Quarter Ended
--------------------
6/30/2013 6/30/2012 Change
--------- --------- --------
(US $ in millions, except
percentages)
Net Sales of Equipment $ 939 $ 1,001 -6%
Gross Profit $ 134 $ 138 -3%
Gross Margin 14.3% 13.8% 0.5 pts
Operating Profit $ 12 $ 17 -29%
Operating Margin 1.3% 1.7% -0.4 pts
CNH Construction Equipment Second Quarter
Results CNH's construction equipment second quarter net sales
decreased 6% (-5% on a constant currency basis) as market
conditions remained challenging in most regions. Operating profit
was $12 million for the quarter as the Company continued to manage
inventory levels matching production volume to retail demand,
deployed production efficiency initiatives and improved price
recovery.
In North America, Case Construction Equipment made a significant
entry into the waste and recycling markets with the introduction of
waste handler wheel loaders and special guarding packages for the
skid steer lineup, among other products. Four new models in the C
Series line of hydraulic excavators, two standard and two
minimum-swing radius excavators were also introduced.
In Europe, the Tier 4A/Stage IIIB emission compliant powered
Case 621F wheel loader made its first appearance at the Bauma
exhibition in April. Also displayed at Bauma were two Tier 4B/Stage
IV emission compliant midi excavators: the short radius CX75 SR and
the conventional CX80C.
Case Construction Equipment launched the new M Series dozers in
the CIS, Asia Pacific and Chinese markets. In China, Case
Construction Equipment was recognized with the "Top 50 Award," the
most prestigious recognition in China's construction equipment
industry, with the "Golden Award for Best Application" for its
WX210 wheeled excavator with hydraulic lifting cab.
Case Construction Equipment launched the ProCare maintenance and
support program for the North American market. ProCare is a program
specific to the heavy equipment line and includes a three-year
Advanced Case SiteWatch telematics subscription, a
three-year/3,000-hour full-machine factory warranty, and a
three-year/3,000-hour planned maintenance contract. ProCare offers
customers the highest level of support in the industry for
increased uptime, lower operating expenses and improved life cycle
costs.
In Europe, New Holland Construction built on the success of its
W170C wheel loader in the recycling industry by launching a new
version, equipped with a new heavy duty cooling box and a full
package of protections for extra operator safety and machine
durability, specially designed for these applications. New Holland
also launched the new L230 skid steer loader and C238 compact track
loader at the Bauma 2013 exhibition in Germany in April.
New Holland continues to expand its offering in the CIS and Asia
Pacific markets with the introduction of three new C Series dozer
models, ranging from 13 to 20 tons, and featuring advanced,
fuel-efficient engines that guarantee high power efficiency and low
operating costs and that are available in specific
emission-compliant engine configurations dedicated to these
markets.
Financial Services
Quarter Ended
--------------------
6/30/2013 6/30/2012 Change
--------- --------- --------
(US $ in millions, except
percentages)
Net Income Attributable to Fin. Services $ 104 $ 78 33%
On-Book Asset Portfolio $ 18,004 $ 16,075 12%
Managed Asset Portfolio $ 20,293 $ 18,399 10%
CNH Financial Services Second Quarter
Results Second quarter net income attributable to Financial
Services increased 33% to $104 million compared with $78 million in
the second quarter of 2012. Increased results were primarily due to
a higher average portfolio and a lower provision for credit
losses.
At June 30, 2013, delinquent receivables greater than 30 days
past due were 0.8% of on-book managed receivables, down from 1.2%
and 1.6% at December 31, 2012 and June 30, 2012, respectively.
CNH Capital LLC The following is disclosed
on behalf of CNH's North American financial services subsidiary,
CNH Capital LLC and its consolidated subsidiaries ("CNH
Capital").
Quarter Ended
--------------------
6/30/2013 6/30/2012 Change
--------- --------- --------
(US $ in millions, except
percentages)
Net Income Attributable to CNH Capital LLC $ 69 $ 54 28%
On-Book Asset Portfolio $ 12,809 $ 11,196 14%
Managed Asset Portfolio $ 12,837 $ 11,268 14%
CNH Capital LLC Second Quarter Results
Second quarter net income attributable to CNH Capital was up 28%
primarily due to a higher average portfolio, stronger financial
margins and a lower provision for credit losses.
The receivables balance greater than 30 days past due as a
percentage of managed receivables was 0.4%, 0.5% and 0.6% at June
30, 2013, December 31, 2012 and June 30, 2012, respectively.
Unconsolidated Equipment Operations
Subsidiaries Second quarter results for the Group's
unconsolidated Equipment Operations subsidiaries were $29 million,
up $4 million from the comparable period of 2012.
Strategic Combination Between Fiat Industrial
S.p.A. and CNH Global N.V. On July 23, 2013, at an
extraordinary meeting of shareholders, CNH shareholders approved
the merger between Fiat Industrial S.p.A. and CNH Global N.V. with
and into a newly established company to be named CNH Industrial
N.V.
Equipment Operations Cash Flow and Net
Debt
Year to Date
----------------------
6/30/2013 6/30/2012
---------- ----------
(US $ in millions)
Net Income $ 801 $ 623
Depreciation & Amortization 170 155
Cash Change in Working Capital* (578) (643)
Other 463 146
---------- ----------
Net Cash Provided by Operating Activities 856 281
Net Cash (Used) by Investing Activities** (249) (215)
All Other (44) (3)
---------- ----------
Increase in Net (Cash) $ 563 $ 63
---------- ----------
Net (Cash) $ (3,583) $ (2,794)
* Net cash change in receivables, inventories and payables
including inter-segment receivables and payables. ** Excluding Net
(Deposits In)/Withdrawals from Fiat Industrial Cash Management
Systems, as they are a part of Net (Cash).
ABOUT CNH CNH Global N.V. is a world
leader in the agricultural and construction equipment businesses.
Supported by approximately 11,500 dealers in approximately 170
countries, CNH brings together the knowledge and heritage of its
Case and New Holland brand families with the strength and resources
of its worldwide commercial, industrial, product support and
finance organizations. CNH Global N.V., whose stock is listed on
the New York Stock Exchange (NYSE: CNH), is a majority-owned
subsidiary of Fiat Industrial S.p.A. (FI.MI). More information
about CNH and its Case and New Holland products can be found online
at www.cnh.com.
CNH CONFERENCE CALL AND WEBCAST CNH
management will hold a conference call on July 31, 2013, to review
first half and second quarter 2013 results. The conference call
webcast will begin at 7:00 a.m. U.S. Central Time (8:00 a.m. U.S.
Eastern Time). This call can be accessed through the investor
information section of the company's website at www.cnh.com and
will be transmitted by CCBN.
NON-GAAP MEASURES CNH utilizes various
figures that are "Non-GAAP Financial Measures" as this term is
defined under Regulation G, as promulgated by the SEC. In
accordance with Regulation G, CNH has detailed either the
computation of these measures from multiple U.S. GAAP figures or
reconciled these non-GAAP financial measures to the most relevant
U.S. GAAP equivalent in the accompanying tables to this press
release. Some of these measures do not have standardized meanings
and investors should consider that the methodology applied in
calculating such measures may differ among companies and analysts.
CNH's management believes these non-GAAP measures provide useful
supplementary information to investors in order that they may
evaluate CNH's financial performance using the same measures used
by our management. These non-GAAP financial measures should not be
considered as a substitute for, nor superior to, measures of
financial performance prepared in accordance with U.S. GAAP.
CNH defines "Equipment Operations Gross Profit" as net sales of
equipment less costs classified as cost of goods sold. CNH defines
"Equipment Operations Operating Profit" as gross profit less costs
classified as selling, general and administrative and research and
development costs. CNH defines "Equipment Operations Gross Margin"
as gross profit as a percent of net sales of equipment. CNH defines
"Equipment Operations Operating Margin" as operating profit as a
percent of net sales of equipment. "Net Debt (Cash)" is defined as
total debt (including intersegment debt) less cash and cash
equivalents, deposits in Fiat Industrial subsidiaries' cash
management system and intersegment notes receivable. CNH defines
"Net income (loss) and diluted EPS before restructuring and
exceptional items" as Net income (loss) attributable to CNH, less
restructuring charges and exceptional items, after tax. Equipment
Operations "working capital" is defined as accounts and notes
receivable and other-net, excluding intersegment notes receivables,
plus inventories less accounts payable. The U.S. dollar computation
of cash generated from working capital, as defined, is impacted by
the effect of foreign currency translation and other non-cash
transactions. CNH defines the "change in net sales on a constant
currency basis" as the difference between prior year actual net
sales and current year net sales translated at prior year average
exchange rates. Elimination of the currency translation effect
provides constant comparisons without the distortion of currency
rate fluctuations.
FORWARD-LOOKING STATEMENTS This press
release includes "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact contained in
this press release, including statements regarding our competitive
strengths, business strategy, future financial position, operating
results, budgets, projected costs and plans and objectives of
management, are forward-looking statements. These statements may
include terminology such as "may," "will," "expect," "could,"
"should," "intend," "estimate," "anticipate," "believe," "outlook,"
"continue," "remain," "on track," "goal," or similar
terminology.
Our outlook is largely based on our interpretation of what we
consider to be relevant economic assumptions and involves risks and
uncertainties that could cause actual results to differ (possibly
materially) from such forward-looking statements. Macro-economic
factors including monetary policy, interest rates, currency
exchange rates, inflation, deflation, credit availability and the
intervention by governments and non-governmental organizations in
an attempt to influence such factors can have a material impact on
our customers and the demand for our goods. Crop production and
commodity prices are strongly affected by weather and can fluctuate
significantly. Housing starts and other construction activity are
sensitive to, among other things, credit availability, interest
rates and government spending. Some of the other significant
factors that may affect our results include general economic and
capital market conditions, the cyclical nature of our businesses,
customer buying patterns and preferences, the impact of changes in
geographical sales mix and product sales mix, foreign currency
exchange rate movements, our hedging practices, investment returns,
our and our customers' access to credit, restrictive covenants in
our debt agreements, actions by rating agencies concerning the
ratings on our debt and asset-backed securities and the credit
ratings of Fiat Industrial, risks related to our relationship with
Fiat Industrial, the effect of the demerger transaction consummated
by Fiat pursuant to which CNH was separated from Fiat's automotive
business and became a subsidiary of Fiat Industrial, our ability to
consummate the pending business combination transaction with Fiat
Industrial and to realize the anticipated benefits of such
transaction, political uncertainty and civil unrest or war in
various areas of the world, pricing, product initiatives and other
actions taken by competitors, disruptions in production capacity,
excess inventory levels, the effect of changes in laws and
regulations (including those related to tax, healthcare, retiree
benefits, government subsidies, engine emissions, and international
trade regulations), the results of legal proceedings, technological
difficulties, results of our research and development activities,
changes in environmental laws, employee and labor relations,
pension and health care costs, relations with and the financial
strength of dealers, the cost and availability of supplies, raw
material costs and availability, energy prices, real estate values,
animal diseases, crop pests, harvest yields, government farm
programs, consumer confidence, housing starts and construction
activity, concerns related to modified organisms and fuel and
fertilizer costs, and the growth of non-food uses for some crops
(including ethanol and biodiesel production). Additionally, our
achievement of the anticipated benefits of our margin improvement
initiatives depends upon, among other things, industry volumes as
well as our ability to effectively rationalize our operations and
to execute our brand strategy. Further information concerning
factors that could significantly affect expected results is
included in our annual report on Form 20-F for the year ended
December 31, 2012.
Furthermore, in light of ongoing difficult macroeconomic
conditions, both globally and in the industries in which we
operate, it is particularly difficult to forecast our results and
any estimates or forecasts of particular periods that we provide
are uncertain. We can give no assurance that the expectations
reflected in our forward-looking statements will prove to be
correct. Our actual results could differ materially from those
anticipated in these forward-looking statements. All written and
oral forward-looking statements attributable to us are expressly
qualified in their entirety by the factors we disclose that could
cause our actual results to differ materially from our
expectations. We undertake no obligation to update or revise
publicly any forward-looking statements.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND SUPPLEMENTAL INFORMATION
For the Three Months Ended June 30, 2013 and 2012
(Unaudited)
Equipment Financial
Consolidated Operations Services
------------- ------------- -------------
Three Months Three Months Three Months
Ended Ended Ended
June 30, June 30, June 30,
------------- ------------- -------------
2013 2012 2013 2012 2013 2012
------ ------ ------ ------ ------ ------
(in millions, except per share data)
Revenues:
Net sales $5,478 $5,026 $5,478 $5,026 $ - $ -
Finance and interest income 252 253 34 33 323 327
------ ------ ------ ------ ------ ------
5,730 5,279 5,512 5,059 323 327
------ ------ ------ ------ ------ ------
Costs and Expenses:
Cost of goods sold 4,259 3,973 4,259 3,973 - -
Selling, general and
administrative 421 426 387 367 34 59
Research, development and
engineering 173 162 173 162 - -
Restructuring 2 2 2 2 - -
Interest expense 158 173 73 82 115 120
Interest compensation to
Financial Services - - 75 78 - -
Other, net 60 67 36 39 24 28
------ ------ ------ ------ ------ ------
Total 5,073 4,803 5,005 4,703 173 207
------ ------ ------ ------ ------ ------
Income before income taxes and
equity in income of
unconsolidated subsidiaries and
affiliates 657 476 507 356 150 120
Income tax provision 217 151 167 105 50 46
Equity in income of
unconsolidated subsidiaries and
affiliates:
Financial Services 4 4 104 78 4 4
Equipment Operations 29 25 29 25 - -
------ ------ ------ ------ ------ ------
Net income 473 354 473 354 104 78
Net Income (loss) attributable
to noncontrolling interests 2 (1) 2 (1) - -
------ ------ ------ ------ ------ ------
Net income attributable to CNH
Global N.V. $ 471 $ 355 $ 471 $ 355 $ 104 $ 78
====== ====== ====== ====== ====== ======
Weighted average shares
outstanding - Basic:
Common Shares 32 241
====== ======
Common Shares B 212
======
Weighted average shares
outstanding - Diluted:
Common Shares 34 242
====== ======
Common Shares B 212
======
Basic and diluted earnings per share ("EPS")
attributable to Common Shares and Common
Shares B:
Basic EPS for Common Shares
and Common Shares B $ 1.93 $ 1.48
====== ======
Diluted EPS for Common Shares
and Common Shares B $ 1.92 $ 1.47
====== ======
These Condensed Consolidated Statements of Operations should be
read in conjunction with the Company's Audited Consolidated
Financial Statements and Notes for the year ended December 31,
2012.
The supplemental Equipment Operations (with Financial Services
on the equity basis) data in these statements include CNH Global
N.V.'s agricultural and construction equipment operations. The
supplemental Financial Services data in these statements include
CNH Global N.V.'s financial services business. Transactions between
Equipment Operations and Financial Services have been eliminated to
arrive at the consolidated data.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND SUPPLEMENTAL INFORMATION
For the Six Months Ended June 30, 2013 and 2012
(Unaudited)
Equipment Financial
Consolidated Operations Services
--------------- --------------- --------------
Six Months Six Months Six Months
Ended Ended Ended
June 30, June 30, June 30,
--------------- --------------- --------------
2013 2012 2013 2012 2013 2012
------- ------- ------- ------- ------ ------
(in millions, except per share data)
Revenues:
Net sales $10,175 $ 9,665 $10,175 $ 9,665 $ - $ -
Finance and interest
income 505 513 67 67 640 659
------- ------- ------- ------- ------ ------
10,680 10,178 10,242 9,732 640 659
------- ------- ------- ------- ------ ------
Costs and Expenses:
Cost of goods sold 7,987 7,697 7,987 7,697 - -
Selling, general and
administrative 842 859 761 727 81 132
Research, development and
engineering 325 311 325 311 - -
Restructuring 3 2 3 2 - -
Interest expense 312 358 145 170 227 249
Interest compensation to
Financial Services - - 142 152 - -
Other, net 112 116 57 63 55 53
------- ------- ------- ------- ------ ------
Total 9,581 9,343 9,420 9,122 363 434
------- ------- ------- ------- ------ ------
Income before income taxes
and equity in income of
unconsolidated
subsidiaries and
affiliates 1,099 835 822 610 277 225
Income tax provision 352 263 261 182 91 81
Equity in income of
unconsolidated
subsidiaries and
affiliates:
Financial Services 7 7 194 151 7 7
Equipment Operations 46 44 46 44 - -
------- ------- ------- ------- ------ ------
Net income 800 623 801 623 193 151
Net Income (loss)
attributable to
noncontrolling interests 3 (1) 4 (1) (1) -
------- ------- ------- ------- ------ ------
Net income attributable to
CNH Global N.V. $ 797 $ 624 $ 797 $ 624 $ 194 $ 151
======= ======= ======= ======= ====== ======
Weighted average shares
outstanding - Basic:
Common Shares 31 240
======= =======
Common Shares B 212
=======
Weighted average shares
outstanding - Diluted:
Common Shares 33 242
======= =======
Common Shares B 212
=======
Basic and diluted earnings per share
("EPS") attributable to Common Shares and
Common Shares B:
Basic EPS for Common
Shares and Common Shares
B $ 3.28 $ 2.60
======= =======
Diluted EPS for Common
Shares and Common Shares
B $ 3.25 $ 2.58
======= =======
These Condensed Consolidated Statements of Operations should be
read in conjunction with the Company's Audited Consolidated
Financial Statements and Notes for the year ended December 31,
2012.
The supplemental Equipment Operations (with Financial Services
on the equity basis) data in these statements include CNH Global
N.V.'s agricultural and construction equipment operations. The
supplemental Financial Services data in these statements include
CNH Global N.V.'s financial services business. Transactions between
Equipment Operations and Financial Services have been eliminated to
arrive at the consolidated data.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
AND SUPPLEMENTAL INFORMATION
As of June 30, 2013 and December 31, 2012
(Unaudited)
Equipment Financial
Consolidated Operations Services
--------------- --------------- ---------------
June Dec. June Dec. June Dec.
30, 31, 30, 31, 30, 31,
2013 2012 2013 2012 2013 2012
------- ------- ------- ------- ------- -------
(in millions)
ASSETS
Cash and cash equivalents $ 1,264 $ 2,008 $ 560 $ 827 $ 704 $ 1,181
Deposits in Fiat Industrial
subsidiaries' cash
management system 5,457 4,232 5,289 4,005 168 227
Accounts, notes receivable
and other, net 17,835 16,168 1,118 824 17,122 15,812
Intersegment notes
receivable - - 2,000 2,476 566 554
Inventories 4,222 3,734 4,222 3,734 - -
Property, plant and
equipment, net 2,247 2,220 2,245 2,218 2 2
Equipment on operating
leases, net 840 767 - - 840 767
Investment in Financial
Services - - 2,191 2,318 - -
Investments in
unconsolidated affiliates 324 345 224 244 100 101
Goodwill and other
intangibles 3,037 3,069 2,881 2,909 156 160
Other assets 2,653 2,883 1,699 1,690 954 1,193
------- ------- ------- ------- ------- -------
Total Assets $37,879 $35,426 $22,429 $21,245 $20,612 $19,997
======= ======= ======= ======= ======= =======
LIABILITIES AND EQUITY
Short-term debt $ 4,072 $ 3,797 $ 321 $ 361 $ 3,751 $ 3,436
Accounts payable 3,134 2,821 3,228 2,932 305 351
Long-term debt, including
current maturities 15,222 14,266 3,379 3,373 11,843 10,893
Intersegment debt - - 566 554 2,000 2,476
Accrued and other
liabilities 6,166 5,908 5,650 5,392 522 522
------- ------- ------- ------- ------- -------
Total Liabilities $28,594 $26,792 $13,144 $12,612 $18,421 $17,678
Equity 9,285 8,634 9,285 8,633 2,191 2,319
------- ------- ------- ------- ------- -------
Total Liabilities and
Equity $37,879 $35,426 $22,429 $21,245 $20,612 $19,997
======= ======= ======= ======= ======= =======
These Condensed Consolidated Balance Sheets should be read in
conjunction with the Company's Audited Consolidated Financial
Statements and Notes for the year ended December 31, 2012.
The supplemental Equipment Operations (with Financial Services
on the equity basis) data in these statements include CNH Global
N.V.'s agricultural and construction equipment operations. The
supplemental Financial Services data in these statements include
CNH Global N.V.'s financial services business. Transactions between
Equipment Operations and Financial Services have been eliminated to
arrive at the consolidated data.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
AND SUPPLEMENTAL INFORMATION
For the Six Months Ended June 30, 2013 and 2012
(Unaudited)
Equipment Financial
Consolidated Operations Services
---------------- ---------------- ----------------
Six Months Ended Six Months Ended Six Months Ended
June 30, June 30, June 30,
---------------- ---------------- ----------------
2013 2012 2013 2012 2013 2012
------- ------- ------- ------- ------- -------
(in millions)
Operating activities:
Net income $ 800 $ 623 $ 801 $ 623 $ 193 $ 151
Adjustments to
reconcile net
income to net cash
(used in) provided
by operating
activities:
Depreciation and
amortization 228 210 170 155 58 55
Intersegment
activity - - (166) (172) 166 172
Changes in
operating assets
and liabilities (1,469) (1,518) 37 (199) (1,506) (1,319)
Other, net (32) 46 14 (126) (6) 21
------- ------- ------- ------- ------- -------
Net cash (used in)
provided by operating
activities (473) (639) 856 281 (1,095) (920)
------- ------- ------- ------- ------- -------
Investing activities:
Expenditures for
property, plant and
equipment (192) (206) (192) (206) - -
Expenditures for
equipment on
operating leases (264) (186) - (1) (264) (185)
Net additions to
retail receivables (368) (214) - - (368) (214)
Net (deposits in)
withdrawals from
Fiat Industrial (1,276) 174 (1,324) 245 48 (71)
Other, net 261 (272) (57) (8) 318 (262)
------- ------- ------- ------- ------- -------
Net cash (used in)
provided by investing
activities (1,839) (704) (1,573) 30 (266) (732)
------- ------- ------- ------- ------- -------
Financing activities:
Intersegment
activity - - 430 (892) (430) 892
Net increase
(decrease) in
indebtedness 1,604 392 9 (91) 1,595 483
Dividends paid (1) - (1) - (234) -
Other, net 11 23 23 34 (12) (13)
------- ------- ------- ------- ------- -------
Net cash provided by
(used in) financing
activities 1,614 415 461 (949) 919 1,362
------- ------- ------- ------- ------- -------
Effect of foreign
exchange rate changes
on cash and cash
equivalents (46) (35) (11) (12) (35) (23)
------- ------- ------- ------- ------- -------
Decrease in cash and
cash equivalents (744) (963) (267) (650) (477) (313)
Cash and cash
equivalents,
beginning of period 2,008 2,055 827 1,251 1,181 804
------- ------- ------- ------- ------- -------
Cash and cash
equivalents, end of
period $ 1,264 $ 1,092 $ 560 $ 601 $ 704 $ 491
======= ======= ======= ======= ======= =======
These Condensed Consolidated Statements of Cash Flows should be
read in conjunction with the Company's Audited Consolidated
Financial Statements and Notes for the year ended December 31,
2012.
The supplemental Equipment Operations (with Financial Services
on the equity basis) data in these statements include CNH Global
N.V.'s agricultural and construction equipment operations. The
supplemental Financial Services data in these statements include
CNH Global N.V.'s financial services business. Transactions between
Equipment Operations and Financial Services have been eliminated to
arrive at the consolidated data.
CNH GLOBAL N.V.
TOTAL DEBT AND NET DEBT (CASH)
For the Six Months Ended June 30, 2013 and the Year Ended December 31, 2012
(Unaudited)
Equipment Financial
Consolidated Operations Services
--------------- ---------------- ---------------
June Dec. June Dec. June Dec.
30, 31, 30, 31, 30, 31,
2013 2012 2013 2012 2013 2012
------- ------- ------- ------- ------- -------
(in millions)
Short-term debt:
With Fiat Industrial
subsidiaries $ 891 $ 313 $ 111 $ 102 $ 780 $ 211
Owed to securitization
investors 2,702 3,013 - - 2,702 3,013
Other 479 471 210 259 269 212
Intersegment - - - - 1,196 1,922
------- ------- ------- ------- ------- -------
Total short-term debt 4,072 3,797 321 361 4,947 5,358
------- ------- ------- ------- ------- -------
Long-term debt:
With Fiat Industrial
subsidiaries 28 44 19 19 9 25
Owed to securitization
investors 8,052 7,326 - - 8,052 7,326
Other 7,142 6,896 3,360 3,354 3,782 3,542
Intersegment - - 566 554 804 554
------- ------- ------- ------- ------- -------
Total long-term debt 15,222 14,266 3,945 3,927 12,647 11,447
------- ------- ------- ------- ------- -------
Total debt:
With Fiat Industrial
subsidiaries 919 357 130 121 789 236
Owed to securitization
investors 10,754 10,339 - - 10,754 10,339
Other 7,621 7,367 3,570 3,613 4,051 3,754
Intersegment - - 566 554 2,000 2,476
------- ------- ------- ------- ------- -------
Total debt $19,294 $18,063 $ 4,266 $ 4,288 $17,594 $16,805
======= ======= ======= ======= ======= =======
Less:
Cash and cash
equivalents 1,264 2,008 560 827 704 1,181
Deposits in Fiat
Industrial
subsidiaries' cash
management system 5,457 4,232 5,289 4,005 168 227
Intersegment notes
receivable - - 2,000 2,476 566 554
------- ------- ------- ------- ------- -------
Net debt (cash) $12,573 $11,823 $(3,583) $(3,020) $16,156 $14,843
======= ======= ======= ======= ======= =======
Note: Net Debt (Cash) is a non-GAAP financial measure. See
description of non-GAAP measures contained in this release.
CNH GLOBAL N.V.
SUPPLEMENTAL SCHEDULES
For the Three and Six Months Ended June 30, 2013 and 2012
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
% %
2013 2012 Change 2013 2012 Change
------- ------- ------- -------
(in millions, except percentages)
1. Revenues and net
sales:
Net sales
Agricultural
equipment $ 4,539 $ 4,025 12.8% $ 8,482 $ 7,640 11.0%
Construction
equipment 939 1,001 -6.2% 1,693 2,025 -16.4%
------- ------- ------- -------
Total net sales 5,478 5,026 9.0% 10,175 9,665 5.3%
Financial services 323 327 -1.2% 640 659 -2.9%
Eliminations and other (71) (74) (135) (146)
------- ------- ------- -------
Total revenues $ 5,730 $ 5,279 8.5% $10,680 $10,178 4.9%
======= ======= ======= =======
2. Net sales on a
constant currency
basis:
Agricultural equipment
net sales $ 4,539 $ 4,025 12.8% $ 8,482 $ 7,640 11.0%
Effect of currency
translation 23 0.5% 94 1.3%
------- ------- ------- -------
Agricultural
equipment net
sales on a
constant currency
basis $ 4,562 $ 4,025 13.3% $ 8,576 $ 7,640 12.3%
======= ======= ======= =======
Construction equipment
net sales $ 939 $ 1,001 -6.2% $ 1,693 $ 2,025 -16.4%
Effect of currency
translation 14 1.4% 41 2.0%
------- ------- ------- -------
Construction
equipment net
sales on a
constant currency
basis $ 953 $ 1,001 -4.8% $ 1,734 $ 2,025 -14.4%
======= ======= ======= =======
Total Equipment
Operations net
sales on a
constant currency
basis $ 5,515 $ 5,026 9.7% $10,310 $ 9,665 6.7%
======= ======= ======= =======
Note: Net sales on a constant currency basis is a non-GAAP
financial measure. See description of non-GAAP measures contained
in this release.
CNH GLOBAL N.V.
SUPPLEMENTAL SCHEDULES
For the Three and Six Months Ended June 30, 2013 and 2012
(Unaudited)
3. Equipment Operations gross and operating profit and margin:
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ----------------------------
2013 2012 2013 2012
------------ ------------ -------------- ------------
(in millions, except percentages)
Net sales $5,478 100.0% $5,026 100.0% $10,175 100.0% $9,665 100.0%
Less:
Cost of goods
sold 4,259 77.7% 3,973 79.0% 7,987 78.5% 7,697 79.6%
------ ------ ------- ------
Equipment
Operations gross
profit $1,219 22.3% $1,053 21.0% $ 2,188 21.5% $1,968 20.4%
Less:
Selling, general
and
administrative 387 7.1% 367 7.3% 761 7.5% 727 7.5%
Research and
development 173 3.2% 162 3.2% 325 3.2% 311 3.2%
------ ------ ------- ------
Equipment
Operations
operating profit $ 659 12.0% $ 524 10.4% $ 1,102 10.8% $ 930 9.6%
====== ====== ======= ======
Gross profit and
margin:
Agricultural
equipment $1,085 23.9% $ 915 22.7% $ 1,962 23.1% $1,675 21.9%
Construction
equipment 134 14.3% 138 13.8% 226 13.3% 293 14.5%
------ ------ ------- ------
Equipment
Operations gross
profit $1,219 22.3% $1,053 21.0% $ 2,188 21.5% $1,968 20.4%
====== ====== ======= ======
Operating profit
and margin:
Agricultural
equipment $ 647 14.3% $ 507 12.6% $ 1,116 13.2% $ 879 11.5%
Construction
equipment 12 1.3% 17 1.7% (14) -0.8% 51 2.5%
------ ------ ------- ------
Equipment
Operations
operating profit $ 659 12.0% $ 524 10.4% $ 1,102 10.8% $ 930 9.6%
====== ====== ======= ======
CNH GLOBAL N.V.
SUPPLEMENTAL SCHEDULES
For the Three and Six Months Ended June 30, 2013 and 2012
(Unaudited)
4. Net income and diluted earnings per share before restructuring and
exceptional items:
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2013 2012 2013 2012
--------- --------- --------- ---------
(in millions, except per share data)
Net income attributable to CNH $ 471 $ 355 $ 797 $ 624
--------- --------- --------- ---------
Restructuring, net of tax 2 1 2 1
--------- --------- --------- ---------
Net income before restructuring
and exceptional items $ 473 $ 356 $ 799 $ 625
========= ========= ========= =========
Weighted average shares outstanding
- Diluted:
Common Shares 34 242 33 242
Common Shares B 212 - 212 -
Diluted EPS before restructuring
and exceptional items for
Common Shares and Common Shares
B $ 1.93 $ 1.47 $ 3.26 $ 2.59
========= ========= ========= =========
5. Equipment Operations cash (used) by working capital:
Balance Cash
Effect of as of generated
Balance as Foreign June (used) by
of December Currency Non-Cash 30, Working
31, 2012 Translation Transactions 2013 Capital
----------- ----------- ------------ ------- ---------
(in millions)
Accounts, notes
receivable and
other - net -
Total $ 824 $ 60 $ (6) $ 1,118 $ (348)
Inventories 3,734 116 (20) 4,222 (584)
Accounts payable
- Total (2,932) (58) - (3,228) 354
----------- ----------- ------------ ------- ---------
Working Capital $ 1,626 $ 118 $ (26) $ 2,112 $ (578)
=========== =========== ============ ======= =========
Note: Working Capital is a non-GAAP financial measure. See
description of non-GAAP measures contained in this release.
For more information contact: CNH Investor Relations +1
(630) 887-3745
CNH Industrial NV (NYSE:CNH)
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