CNH Industrial released full-year and fourth quarter results for 2013, as well the company’s outlook for 2014.
Net revenues for 2013 totaled €25.8 billion ($35 billion), which is in line with 2012. On a constant currency basis, revenues increased 4.3 percent. Net profit increased 2 percent, from €900 million ($1.22 billion) in 2012 to €917 million ($1.24 billion) in 2013.
The Agricultural and Construction Equipment sector maintained a revenue of €16 billion ($21.7 billion), in line with 2012. On a constant currency basis, the sector’s revenues increased by €759 million ($1.03 billion). The company attributes this to a strong demand for agricultural equipment offsetting the challenges faced by the construction equipment business.
Trucks and Commercial Vehicles revenue was €8.8 billion ($12 billion) for the year, representing a 1.5 percent increase from 2012 on a constant currency basis, as a result of a recovery in demand from Europe. Powertrain revenue totaled €3.3 billion ($4.5 billion), up 14.6 percent on a constant currency basis, driven by higher volumes for internal and external customers.
Operating profit for the year increased €22 million ($30 million) to €1.9 billion ($2.6 billion), while group trading profit declined €78 million ($105 million) to €1.9 billion ($2.6 billion).
Fourth Quarter Results
For the fourth quarter, revenues totaled €6.9 billion ($9.4 billion), an increase of 4.2 percent from the same period in 2012 on a constant currency basis. A decline in Construction Equipment revenue partially offset the positive performance from the Agricultural Equipment, Powertrain and Trucks and Commercial Vehicles segments.
Operating profit in the fourth quarter of 2013 was €388 million ($527 million), an increase of 8.4 percent compared with €358 million ($486 million) for the same period in 2012. Net financial expense decreased €14 million ($19 million), to €119 million ($161.6 million) for the quarter, and net profit increased 9 percent to €170 million ($230.9 million).
In 2014, the company expects improvements in operating performances in the Trucks and Commercial Vehicles and Construction Equipment businesses, coupled with continued industrial efficiencies. These improvements are expected to offset the projected decline in unit demand of agricultural equipment forecasted for the year.
CNH Industrial expects revenues flat up to 5 percent, a trending margin between 7.8 and 8.2 percent, and net industrial debt between €1.5 billion and €1.7 billion ($2.04 billion and $2.3 billion).