Adjusted EBIT of Industrial Activities increased $219 million, with stronger performance from all segments compared to Q4 2019.
CNH Industrial reports strong results for Q4 2020. Consolidated revenues of $8.5 billion (up 10 per cent) and adjusted EBIT of Industrial Activities of $520 million (up 73 per cent), with all segments up year over year. Net income of $187 million and adjusted net income of $432 million. The positive free cash flow of Industrial Activities of $2.4 billion. Industrial Activities net cash of $0.8 billion on December 31, 2020.
Financial results presented under U.S. GAAP
Net sales of Industrial Activities up 12 per cent due to higher volumes and favourable price realization, mainly in Agriculture and Commercial and Specialty Vehicles.
Adjusted EBIT of Industrial Activities increased $219 million, with a stronger performance from all segments compared to Q4 2019. Agriculture adjusted EBIT margin above 11per cent, C&SV at 3.3 per cent.
Adjusted net income of $432 million (adjusted diluted earnings per share of $0.30), an increase of $153 million from 2019, after excluding certain items from the $187 million reported net income, primarily the $134 million negative fair value adjustment of the investment in Nikola Corporation, and $125 million ($95 million after-tax) non-cash settlement charge resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations.
Record positive free cash flow of Industrial Activities of $2.4 billion resulting from strong operating performance and working capital management. Total Debt of $26.1 billion at December 31, 2020. Industrial Activities net cash position achieved for the first time in CNH Industrial’s history, at $0.8 billion, an improvement of $2.3 billion from September 30, 2020.
Available liquidity at a record level of $15.9 billion on December 31, 2020. In October, CNH Industrial Capital LLC issued $500 million in aggregate principal amount of 1.875per cent Notes due 2026. In December, CNH Industrial Finance Europe S.A. issued €750 million in aggregate principal amount of 0.000per cent Notes due 2024. Concurrently, CNH Industrial N.V. prepaid £600 million of commercial paper due 2021 issued in April through the Joint HM Treasury and Bank of England’s Covid Corporate Financing Facilities.
