Latest news with #IndustrialActivities
Yahoo
16-05-2025
- Automotive
- Yahoo
Iveco Group NV (IVCGF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Revenues: Slightly over EUR 3 billion, down approximately 10% year over year. Net Revenues of Industrial Activities: EUR 2.96 billion, contracting by approximately 10% year over year. Financial Services Net Revenues: EUR 114 million, down 21.4% compared to prior year. Adjusted EBIT: EUR 152 million with a 5% margin; Industrial Activities adjusted EBIT at EUR 117 million with a 4% margin. Net Financial Expenses: EUR 39 million, compared to EUR 21 million in Q1 2024. Adjusted Net Income: EUR 84 million with an adjusted diluted EPS of EUR 0.31. Free Cash Flow Absorption: EUR 794 million, mainly due to lower sales volumes and working capital seasonality. Available Liquidity: EUR 4.7 billion, including EUR 1.9 billion of undrawn committed facilities. Truck Net Revenues: Just under EUR 2 billion, down due to volume contraction in Europe. Bus Net Revenues: EUR 478 million, up nearly 16% year over year. Defense Net Revenues: EUR 278 million, up 31% year over year. Powertrain Net Revenues: EUR 784 million, down 19% year over year. Truck Adjusted EBIT Margin: 3%. Bus Adjusted EBIT Margin: 5.4%, up 30 basis points year over year. Defense Adjusted EBIT Margin: Nearly 13%, up 260 basis points year over year. Powertrain Adjusted EBIT Margin: 5.5%, down 70 basis points year over year. Financial Services Adjusted EBIT: EUR 35 million. Managed Portfolio: EUR 7.9 billion, with retail accounting for 43% and wholesale 57%. Warning! GuruFocus has detected 4 Warning Signs with IVCGF. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Iveco Group NV (IVCGF) successfully completed the phaseout of previous generation models and introduced the new model year 2024 in light commercial vehicles, positioning the company well for future demand. The company reported strong order intake in Europe and Latin America for both light and heavy-duty trucks, with a book-to-bill ratio above 1 in Europe for the first time since Q1 2023. Iveco Group NV (IVCGF) formed strategic partnerships with Ford Otosan and Stellantis, enhancing its position in the truck business and expanding its electric vehicle lineup. The Bus and Defense segments delivered strong results, with continuous margin improvements and solid order books. The company maintained a solid liquidity position with available liquidity of EUR4.7 billion, including EUR1.9 billion of undrawn committed facilities. Iveco Group NV (IVCGF) faced a challenging market environment with lower industry demand levels across European truck segments, resulting in a 32% year-over-year decline in European production. The company's consolidated net revenues contracted by approximately 10% year over year, mainly due to lower volumes in Europe for truck and powertrain and negative FX translation effects. Financial Services net revenues decreased by 21.4% compared to the prior year. The adjusted EBIT margin for Industrial Activities contracted, with a negative impact from lower volumes and less efficient fixed cost absorption. The Powertrain segment experienced a 22% decline in engine volumes in Q1 2025 compared to Q1 2024, reflecting a challenging industry environment. Q: Now that you're done with the model transition and phasing out old models, how much of a headwind was this in the quarter, and will we see a quick recovery? A: Olof Persson, CEO: The transition to the model year '24 is complete, and we managed inventory levels effectively. This is now behind us, and we are prepared to move forward with a good level of inventory both internally and at dealers. Q: Can you provide an update on the Defense backlog and the potential impact of a sale on capital allocation? A: Anna Tanganelli, CFO: The Defense backlog was well above EUR4 billion at the end of 2024, with plans to increase it in 2025. Regarding a potential sale, we are exploring preliminary interest and will inform stakeholders about any financial impacts and capital allocation plans once more details are available. Q: Should we expect further market share gains in the heavy-duty segment in Europe, or is consolidation more likely? A: Olof Persson, CEO: We are pleased with our market share gains and believe our product is competitive. While market shares are difficult to predict, we are committed to maintaining our pricing discipline and pushing forward with sales activities. Q: How does the guidance look for the rest of the year, and will Q2 show material improvement? A: Anna Tanganelli, CFO: We expect a gradual improvement in Q2, with a stronger second half of the year compared to the first half. The book-to-bill ratio is above 1, indicating positive momentum. Q: Can you discuss the impact of tariffs on production costs and supply chain, and the outlook for Powertrain volume recovery? A: Olof Persson, CEO: Tariffs have had a minimal impact on production costs and supply chain. For Powertrain, we expect a market recovery as destocking ends and volumes increase, supported by our strong position with external customers and internal growth plans. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hamilton Spectator
15-05-2025
- Automotive
- Hamilton Spectator
Iveco Group 2025 First Quarter Results
The following is an extract from the 'Iveco Group 2025 First Quarter Results' press release. The complete press release can be accessed by visiting the media section of the Iveco Group corporate website: or consulting the accompanying PDF: The Company responded decisively to market downturn and laid strong foundations for future growth. Full year guidance confirmed in its entirety The Board has decided to proceed with the separation of the Defence business via a spin-off while exploring preliminary expressions of interest from potential strategic buyers Consolidated revenues amounted to €3,026 million compared to €3,367 million in Q1 2024. Net revenues of Industrial Activities were €2,958 million compared to €3,283 million in Q1 2024, with positive price realisation partially offsetting lower volumes in Truck and Powertrain and an adverse foreign exchange rate impact. Adjusted EBIT was €152 million compared to €233 million in Q1 2024 with a 5.0% margin (6.9% in Q1 2024). Adjusted EBIT of Industrial Activities was €117 million (€201 million in Q1 2024), with positive price realisation and cost containment actions in selling, general and administrative costs ('SG&A') partially offsetting lower volumes and mix. Adjusted EBIT margin of Industrial Activities was 4.0% (6.1% in Q1 2024), with margin improvements in Bus and Defence. Adjusted net income was €84 million (€153 million Q1 2024) with adjusted diluted earnings per share of €0.31 (€0.57 in Q1 2024). Net financial expenses amounted to €39 million compared to €21 million in Q1 2024, which included a positive impact of the Argentinian hyperinflation accounting; starting from 1st January 2025, following the change of the functional currency of one of our local subsidiaries from the Argentine peso to the U.S. dollar, hyperinflation accounting is no longer applicable in Argentina. Reported income tax expense was €12 million, with an adjusted Effective Tax Rate (adjusted ETR) of 26% in Q1 2025 which reflects the different tax rates applied in the jurisdictions where the Group operates and some other discrete items. Free cash flow of Industrial Activities was negative at €794 million (vs negative €436 million in Q1 2024) mainly driven by higher working capital absorption due to lower sales and production level for Truck and Powertrain. Available liquidity was €4,709 million as of 31st March 2025 (€5,474 million at 31st December 2024), including €1,900 million of undrawn committed facilities. Attachment
Yahoo
15-05-2025
- Automotive
- Yahoo
Iveco Group 2025 First Quarter Results
The following is an extract from the 'Iveco Group 2025 First Quarter Results' press release. The complete press release can be accessed by visiting the media section of the Iveco Group corporate website: or consulting the accompanying PDF: The Company responded decisively to market downturn and laid strong foundationsfor future growth. Full year guidance confirmed in its entirety The Board has decided to proceed with the separation of the Defence business via a spin-offwhile exploring preliminary expressions of interest from potential strategic buyers Consolidated revenues amounted to €3,026 million compared to €3,367 million in Q1 2024. Net revenues of Industrial Activities were €2,958 million compared to €3,283 million in Q1 2024, with positive price realisation partially offsetting lower volumes in Truck and Powertrain and an adverse foreign exchange rate impact. Adjusted EBIT was €152 million compared to €233 million in Q1 2024 with a 5.0% margin (6.9% in Q1 2024). Adjusted EBIT of Industrial Activities was €117 million (€201 million in Q1 2024), with positive price realisation and cost containment actions in selling, general and administrative costs ('SG&A') partially offsetting lower volumes and mix. Adjusted EBIT margin of Industrial Activities was 4.0% (6.1% in Q1 2024), with margin improvements in Bus and Defence. Adjusted net income was €84 million (€153 million Q1 2024) with adjusted diluted earnings per share of €0.31 (€0.57 in Q1 2024). Net financial expenses amounted to €39 million compared to €21 million in Q1 2024, which included a positive impact of the Argentinian hyperinflation accounting; starting from 1st January 2025, following the change of the functional currency of one of our local subsidiaries from the Argentine peso to the U.S. dollar, hyperinflation accounting is no longer applicable in Argentina. Reported income tax expense was €12 million, with an adjusted Effective Tax Rate (adjusted ETR) of 26% in Q1 2025 which reflects the different tax rates applied in the jurisdictions where the Group operates and some other discrete items. Free cash flow of Industrial Activities was negative at €794 million (vs negative €436 million in Q1 2024) mainly driven by higher working capital absorption due to lower sales and production level for Truck and Powertrain. Available liquidity was €4,709 million as of 31st March 2025 (€5,474 million at 31st December 2024), including €1,900 million of undrawn committed facilities. Attachment 20250515_PR_IVG_Q1_2025Sign in to access your portfolio
Associated Press
01-05-2025
- Business
- Associated Press
CNH Industrial N.V. Reports First Quarter 2025 Results
First quarter consolidated revenues were $3.8 billion on lower industry demand First quarter diluted EPS at $0.10 Results reflect continued execution of cost saving initiatives partially offsetting market headwinds Updated guidance reflects macroeconomic uncertainty from the global trade environment Basildon, UK - May 1, 2025 - CNH Industrial N.V. (NYSE: CNH) today reported results for the three months ended March 31, 2025, with net income of $132 million and diluted earnings per share of $0.10 compared with net income of $369 million and diluted earnings per share of $0.29 for the three months ended March 31, 2024(1). Consolidated revenues were $3.83 billion (down 21% compared to Q1 2024), and net sales of Industrial Activities were $3.17 billion (down 23% compared to Q1 2024). Net cash provided by operating activities was $162 million and Industrial free cash flow absorption was $567 million in Q1 2025. 'Despite the challenging market conditions, CNH remains committed to driving operational excellence and advancing cutting-edge technologies. Our focus on reducing dealer inventories and managing costs has positioned us to weather the current macroeconomic uncertainties, and our balanced global exposure allows us to continue providing excellent products and services to our customers. We are confident in our strategic initiatives and the dedication of our team to execute them, and we are excited to review our strategy in more detail with you at our Investor Day next week.' 2025 First Quarter Results (all amounts $ million, comparison vs Q1 2024 - unless otherwise stated) Please note that in this and in the following tables and commentary, prior periods have been revised to reflect an immaterial correction to the financial statements. See note 1 for further details. The decline in Net sales of Industrial Activities was mainly due to lower shipments on decreased industry demand and dealer destocking. Adjusted net income was $132 million with adjusted diluted earnings per share of $0.10. In comparison, in Q1 2024, adjusted net income was $388 million with adjusted diluted earnings per share of $0.30. The decrease in adjusted net income is primarily due to the lower shipment volumes in Agriculture and Construction. Income tax expense was $47 million ($77 million in Q1 2024), and the effective tax rate (ETR) was 29.0% (19.2% in Q1 2024) with an adjusted ETR(4) of 29.0% for the first quarter (19.4% in Q1 2024). Cash flow provided by operating activities in the quarter was $162 million ($894 million used in Q1 2024). Free cash flow of Industrial Activities was an outflow of $567 million, a year-over-year improvement of $642 million mainly driven by lower seasonal inventory growth. In North America, industry volume was down 12% year-over-year in the first quarter for tractors under 140 HP and was down 24% for tractors over 140 HP; combines were down 51%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 23% and 34%, respectively. South America tractor and combine demand was up 10% and 1%, respectively, inverting the negative trend of previous quarters. Asia Pacific tractor demand was up 12%, while combine demand was down 12%. Agriculture net sales decreased in the quarter by 23% to $2.58 billion versus the same period of 2024, primarily due to lower shipment volumes on decreased industry demand across all regions and dealer destocking. Adjusted EBIT decreased to $139 million ($388 million in Q1 2024) driven by the lower shipment volumes, partially offset by improved purchasing and manufacturing costs, and a continued reduction in SG&A expenses. R&D investments accounted for 6.3% of sales (6.0% in Q1 2024). Adjusted EBIT margin was 5.4% (11.5% in Q1 2024). Global industry volume for construction equipment increased 2% year-over-year in the first quarter for Heavy construction equipment; Light construction equipment was down 6%. Aggregated demand decreased 11% in North America, 9% in EMEA, and 1% in South America, but increased 7% in Asia Pacific. Construction net sales decreased in the quarter by 22% to $591 million, due to lower shipment volumes driven by the market decline. Adjusted EBIT decreased to $14 million ($51 million in Q1 2024) as a result of lower shipment volumes and unfavorable net price realization, partially offset by improved purchasing and manufacturing costs, and a continued reduction in SG&A expenses. Adjusted EBIT margin was 2.4% (6.7% in Q1 2024). Revenues of Financial Services decreased by 5% as a result of the negative impact from currency translation, lower yields primarily in South America, and lower used equipment sales related to decreased operating lease maturities; partially offset by favorable volumes in all regions except EMEA. Net income was $90 million in the first quarter, a decrease of $28 million versus the same period of 2024, primarily due to increased risk costs in South America and North America, higher effective tax rate due to prior year Argentina inflation adjustment, and lower recoveries on used equipment sales; partially offset by favorable volumes and interest margin improvements in most regions. The managed portfolio (including unconsolidated joint ventures) was $28.0 billion as of March 31, 2025 (of which retail was 69% and wholesale was 31%), down $0.7 billion compared to March 31, 2024 (up $0.3 billion on a constant currency basis). At March 31, 2025, the receivables balance greater than 30 days past due as a percentage of receivable portfolio was 2.3%, (1.7% as of March 31, 2024). 2025 Outlook The Company forecasts that 2025 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2024. In addition, CNH is focused on driving down excess channel inventory primarily by producing fewer units than the retail demand level. Therefore, 2025 net sales will be lower than in 2024. The lower production and sales levels will negatively impact our segment margin results. However, the Company's ongoing efforts to reduce its operating costs will partially mitigate the margin erosion. CNH is continuing to focus on reducing product costs through lean manufacturing principles and strategic sourcing. The Company will also carefully manage its SG&A and R&D expenses accordingly. In addition to the lower cyclical industry sales, the Company has been evaluating multiple potential global trade scenarios. The uncertainty of those scenarios, including the amount and duration of tariffs levied, the policy reactions of U.S. trading partners, and the impact to our end customers, may affect our forecast for the year. The Company has therefore evaluated a wider set of possible outcomes, including tariffs remaining at their current levels through the remainder of the year and, as of July 9, 2025, tariffs increasing to the levels announced by the U.S. government on April 2, 2025. Consequently, the Company is providing the following updated 2025 outlook: Conference Call and Webcast Today, at 9:00 a.m. EDT, management will hold a conference call to present first quarter 2025 results to financial analysts and investors. The call can be followed live online or as a recording later at CNH will also host an Investor Day on Thursday, May 8, 2025, from 9:00 a.m. to noon EDT to review its strategic initiatives and targets. The event can be followed live online or as a recording later at Notes CNH reports quarterly and annual consolidated financial results under U.S. GAAP and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP. Non-GAAP Financial Information CNH monitors its operations through the use of several non-GAAP financial measures. CNH's management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers' ability to assess CNH's financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP. CNH's non-GAAP financial measures are defined as follows: The tables attached to this press release provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures. Forward-looking Statements All statements other than statements of historical fact contained in this press release including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward-looking statements also include statements regarding the future performance of CNH and its subsidiaries on a standalone basis. These statements may include terminology such as 'may', 'will', 'expect', 'could', 'should', 'intend', 'estimate', 'anticipate', 'believe', 'outlook', 'continue', 'remain', 'on track', 'design', 'target', 'objective', 'goal', 'forecast', 'projection', 'prospects', 'plan', or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods related products, changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods related issues such as agriculture, the environment, debt relief and subsidy program policies, trade, commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs and other protective measures issued to promote national interests or address foreign competition, which in turn result or may result in retaliatory tariffs or other measures enacted by affected trade partners; volatility in international trade caused by the imposition of tariffs and the related impact on costs and prices, which could consequently affect demand of our products, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics (such as the COVID-19 pandemic), terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; including targeted restructuring actions to optimize our cost structure and improve the efficiency of our operations; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing. Forward-looking statements are based upon assumptions relating to the factors described in this press release, which are sometimes based upon estimates and data received from third-parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside CNH's control. CNH expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning CNH, including factors that potentially could materially affect its financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission ('SEC'). All future written and oral forward-looking statements by CNH or persons acting on the behalf of CNH are expressly qualified in their entirety by the cautionary statements contained herein or referred to above. Additional factors could cause actual results to differ from those expressed or implied by the forward-looking statements included in the Company's filings with the SEC (including, but not limited to, the factors discussed in our 2024 Annual Report and subsequent quarterly reports). CONTACTS Media Inquiries – Laura Overall Tel +44 207 925 1964 or Rebecca Fabian Tel +1 312 515 2249 (Email [email protected]) Investor Relations – Jason Omerza Tel +1 630 740 8079 or Federico Pavesi Tel +39 345 605 6218 (Email [email protected]) CNH INDUSTRIAL N.V. Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024 (Unaudited,U.S. GAAP) (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. These 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, 2024 included in the Annual Report on Form 10-K. These Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries. CNH INDUSTRIAL N.V. Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (Unaudited,U.S. GAAP) These Consolidated Balance Sheets should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the year ended December 31, 2024 included in the Annual Report on Form 10-K. These Consolidated Balance Sheets represent the consolidation of all CNH Industrial N.V. subsidiaries. CNH INDUSTRIAL N.V. Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024 (Unaudited,U.S. GAAP) (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. These 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, 2024 included in the Annual Report on Form 10-K. These Consolidated Statements of Cash Flows represent the consolidation of all CNH Industrial N.V. subsidiaries. CNH INDUSTRIAL N.V. Supplemental Statements of Operations for the Three Months Ended March 31, 2025 and 2024 (1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. (2) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. (3) Elimination of Financial Services' interest income earned from Industrial Activities. (4) Elimination of Industrial Activities' interest expense to Financial Services. (1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. (2) This item includes the elimination of receivables/payables between Industrial Activities and Financial Services. (3) This item primarily represents the reclassification of deferred tax assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services. CNH INDUSTRIAL N.V. Supplemental Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024 (Unaudited, U.S. GAAP) (1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company's Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. (2) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. (3) This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided (used) by operating activities. (4) This item includes the elimination of certain minor activities between Industrial Activities and Financial Services. Other Supplemental Financial Information (Unaudited) (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. (2) In each of the three months ended March 31, 2025 and 2024, this item includes a pre-tax gain of $6 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification. Other Supplemental Financial Information (Unaudited) (1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $221 million and $456 million as of March 31, 2025 and December 31, 2024, respectively. Total (Debt) of Financial Services includes Intersegment notes payable to Industrial Activities of $416 million and $334 million as of March 31, 2025 and December 31, 2024, respectively. (2) The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $(195) million and $122 million as of March 31, 2025 and December 31, 2024, respectively. (1) This item primarily includes capital increases in intersegment investments and change in financial receivables. Other Supplemental Financial Information (Unaudited) (1) In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. See the supplemental financial information section below for a reconciliation of adjustments to prior reported results. Other Supplemental Financial Information (Unaudited) Revision of Prior Period Financial Statements: In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2024, we had revised prior periods' results to reflect an immaterial correction for the accounting treatment related to highly inflationary accounting for our unconsolidated affiliate in Türkiye. CNH owns 37.5% of TürkTraktör ve Ziraat Makineleri A.S. ( and accounts for its ownership stake under the equity method. The functional currency of Türkiye-based TürkTraktör is the Turkish lira, and the Türkiye economy was deemed highly inflationary in 2022. CNH has determined that its translation criteria from Turkish lira into CNH's functional currency of U.S. dollars resulted in an overstatement of CNH's Equity in income of unconsolidated subsidiaries and affiliates by $96 million in 2023 and by $67 million in the first half of 2024. Impacts in 2022 were included in the 2023 amount. We have revised our GAAP and Non-GAAP results for all prior periods presented herein. The prior period impacts to the Company's consolidated statements of operations and the related impacts to the statements of consolidated comprehensive income are as follows. The prior period impacts to the Company's Consolidated Statement of Cash Flows are as follows: Other Supplemental Financial Information (Unaudited) Other Supplemental Financial Information (Unaudited) (1) This is a non-GAAP financial measure. See reconciliation to the most comparable U.S. GAAP financial measure below. The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure: Other Supplemental Financial Information (Unaudited) The following table includes the reconciliation of adjusted net income to net income, the most comparable U.S. GAAP financial measure and a calculation of the revised adjusted diluted EPS: Attachment
