CNH Revenue Up 13.4% in Q1

CNH Industrial, the parent of Case Construction Equipment, has reported its Q1 2022 performance, highlighted by a 13.4 percent increase in revenue over the same period in 2021.

Q1 highlights:

Net income of $336 million, Adjusted Net Income of $378 million, with adjusted diluted EPS of $0.28
Adjusted EBIT of Industrial Activities of $429 million (up $36 million compared to Q1 2021)
Seasonal free cash flow absorption of $1,059 million (Industrial Activities) amid continued supply chain disruptions
Consolidated revenues of $4.6 billion, (up 13.4 percent compared to Q1 2021 for continuing operations).

"In our first quarter as a pure play agricultural and construction equipment business, the CNH Industrial team delivered a solid performance that demonstrates the potential of a focused, customer-centric company," said Scott Wine, CEO. "With redoubled commitment to customer-inspired innovation, diligent operational execution, and improved product quality spurring margin expansion, we delivered net sales of Industrial Activities of nearly $4.2 billion, up 15 percent from last year on a constant currency basis. Alongside favorable product mix, this resulted in adjusted gross margin of 22.2 percent, up 60 basis points from Q1 2021 and adjusted EBIT of industrial activities increased by more than 9 percent to $429M.

"Order books remain exceptionally strong, up almost 40 percent in agriculture and 80 percent in construction, as demand remained healthy," Wine said. "Our thoughts are with our employees, customers, and dealers directly impacted by the war in Ukraine. We are all affected by the associated higher grain prices, potential food shortages, and rising energy costs. Despite these mostly unhelpful macro forces, we are maintaining our original 2022 guidance. We did not plan for positive cash flow in the first quarter, and as critical supply chain disruptions constrained our ability to ship finished goods, we ended the quarter with a cash outflow of $1.1 billion. Logistics pressures and semiconductor shortages, which are not unique to CNH Industrial, are expected to remain a headwind through the year, but I am confident in our team’s ability to navigate the current environment as evidenced by our results during the first quarter."

Source: CNH Industrial