CNH Industrial reported first-quarter 2014 revenues of $7.5 billion, in line with first-quarter 2013 revenues. Net income for the quarter was $101 million; net income was $177 million before restructuring and other exceptional items, down $8 million from 1Q 2013.
Net sales of Industrial Activities at $7.2 billion decreased 0.6 percent vs Q1 2013 (+1.3 percent on a constant currency basis). Operating profit of Industrial Activities for the quarter was $412 million, down 2.1 percent against Q1 2013, with operating margin at 5.7 percent.
Net sales increased in the Construction Equipment and Powertrain segments, offsetting reduced net sales in Agricultural Equipment. CE revenues totaled $774 million, up $20 million from 1Q 2013. Operating profit in the segment totaled $3 million, compared to a $26 million loss in 1Q 2013.
Commercial Vehicles posted first quarter net sales of $2,308 million, down 0.6 percent from the prior year (+0.3 percent on a constant currency basis), as positive performance in truck and bus in EMEA and APAC was offset by a significant decline in demand in Brazil, in manufacturing activities in Venezuela and by unfavorable calendarization of activity in parts and specialty vehicles.
A total of 27,752 vehicles (including buses and specialty vehicles) were delivered, representing a 2 percent increase over Q1 2013. Volumes were higher in the light (+6.1 percent) and the heavy (+3.7 percent) vehicle segments, while in the medium segment volumes were down 6.5 percent.
Powertrain reported first quarter net sales of $1,201 million, an increase of 23.3 percent over Q1 2013 (+19.7 percent on a constant currency basis) primarily attributable to higher volumes. Sales to external customers accounted for 37 percent of total net sales (31 percent in the same period in 2013).
During the quarter, Powertrain sold a total of 157,370 engines, an increase of 28 percent year-over-year. By major customer, 27 percent of engines were supplied to Agricultural Equipment, 25 percent to Commercial Vehicles, 4 percent to Construction Equipment and the remaining 44 percent to external customers. Additionally, Powertrain delivered 17,276 transmissions and 40,136 axles, an increase of 10 and 6 percent, respectively, over the same period in 2013.
Powertrain closed the first quarter with an operating profit of $34 million, up $20 million from the same period in 2013, with an operating margin of 2.8 percent (1.4 percent for Q1 2013). The improvement was mainly due to the increase in volumes and related industrial efficiencies.