Stock on the Run: CNH Industrial N.V. (NYSE: CNHI)

On Tuesday, Shares of CNH Industrial N.V. (NYSE: CNHI) showed the bearish trend with a lower momentum of -1.63% and ended its trading session at $13.29. The company traded total volume of 2,677,622 shares as contrast to its average volume of 2.00M shares. The company has a market value of $18.00B and about 1.35B shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $8.68 and reached the max level of $12.64.

CNH Industrial N.V. (NYSE:CNHI / MI: CNHI) recently declared consolidated revenues of $27,361.0M for the full year 2017, up 10% contrast to 2016. Net sales of Industrial Activities were $26,168.0M for the year, up 11% contrast to 2016. In the fourth quarter of 2017, consolidated revenues were $8,102.0M, up 16% contrast to the fourth quarter of 2016. Net sales of Industrial Activities were $7,798.0M for the fourth quarter of 2017, up 17% contrast to the fourth quarter of 2016. Net income was $313.0M for the full year 2017 and includes a non-cash pre- and after-tax charge of $92.0M because of the deconsolidation of CNH Industrial’s Venezuelan operations effective December 31, 2017; a non-cash tax charge of $123.0M because of the U.S. Tax Cuts and Jobs Act (the “U.S. Act”) and tax legislation changes in the UK and certain other countries enacted in the fourth quarter of 2017, as revealed in our press release of January 25, 2018; as well as a total pre-tax charge of $64.0M (total after-tax charge of $55.0M) related to the repurchase/early redemption of certain notes in 2017.

Adjusted net income was $669.0M for the full year 2017 contrast to $482.0M in 2016. Adjusted diluted EPS in 2017 was $0.48, up 37% contrast to 2016. For the fourth quarter of 2017, net loss was $40.0M and, as mentioned above, was affected by the $92.0M charge for Venezuelan operations deconsolidation, the $123.0M charge because of the U.S. Act and other tax legislation changes, as well as $8.0M charge on early redemption of notes. The adjusted net income was $197.0M for the quarter, flat contrast to the fourth quarter of 2016. Adjusted diluted EPS in the fourth quarter of 2017 was $0.14, flat contrast to the fourth quarter of 2016.

Operating profit of Industrial Activities was $1,519.0M for the full year 2017 contrast to $1,291.0M in 2016, with an operating margin of 5.8%, up 0.3 percentage points (“p.p.”) contrast to 2016. In the fourth quarter of 2017, operating profit of Industrial Activities was $468.0M, contrast to $412.0M in the fourth quarter of 2016, with an operating margin of 6.0% (6.2% in 2016).

For the full year 2017, income taxes were $455.0M ($298.0M in 2016), counting the $123.0M non-cash tax charge. Adjusted income taxes for the full year 2017 were $348.0M ($265.0M in 2016). The adjusted effective tax rate (adjusted ETR) improved by 2 p.p. to 37%, when contrast to 2016. For 2018, we expect the adjusted ETR to be in the range of 30% to 32%, reflecting the positive impact of the recently enacted rate reductions in the U.S. and several other jurisdictions.

Net industrial debt was reduced to $0.90B at December 31, 2017, down $1.70B and $0.70B contrast to September 30, 2017, and December 31, 2016, respectively, as a result of strong cash flow performance mainly arising from reduced working capital levels. Total debt was $25.90B at December 31, 2017, up $0.60B contrast to December 31, 2016, with third party debt in Industrial Activities down $0.20B from December 31, 2016 to $6.50B (or down $0.80B at constant currency). At December 31, 2017, available liquidity was $9.40B, up $0.60B contrast to December 31, 2016.

During the quarter, CNH Industrial N.V. issued $500.0M in aggregate principal amount of 3.850% Notes due 2027. This was the first bond issued after the Company’s securities became eligible for the main investment grade indices in the U.S. market (following the assignment of the investment grade rating from Fitch and the upgrade to investment grade from S&P). This is the first 10-year term public bond ever issued by the Company.

The Company offered net profit margin of 1.10% while its gross profit margin was 21.00%. ROE was recorded as 6.60% while beta factor was 0.99. The stock, as of recent close, has shown the weekly downbeat performance of -1.63% which was maintained at -0.82% in this year.

Leon Constant

Reporter

I am Leon Constant and I focus on breaking news stories and ensuring we (“The Stock Gem”) offer timely reporting on some of the most recent stories released through market wires about “Basic Material Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for thestockgem.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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