CNH Q1 Originations Down on Decline in Ag Equipment Sales



CNH Industrial announced consolidated revenues of $5,372 million for Q1/16, down 5.7% compared to Q1/15 on a constant currency basis (down 9.9% on a reported basis).

CNH reported a net loss of $513 million for Q1/16 after recording the previously announced exceptional non-tax deductible charge of $502 million related to the investigation of the company’s wholly-owned subsidiary, Iveco S.p.A., and its competitors by the European Commission for certain alleged anticompetitive practices and related matters. Adjusted net income, which excludes this exceptional charge and restructuring expenses, was $1 million for the quarter.

The following highlights were excerpted from the CNH news release:

  • Financial services revenues of $388 million in Q1/16 were down 6.1% from $413 million in Q1/15. Q1/16 net income was $87 million, an increase $2 million over the same period in 2015, with improved net interest margin more than offsetting slightly higher provision for credit losses and the negative impact of currency translation.
  • Retail loan originations in Q1/16 were $1.9 billion, down $0.1 billion compared to Q1/15 on a constant currency basis, primarily due to a decline in agricultural equipment sales. The managed portfolio of $24.9 billion as of 3/31/16 was down $0.6 billion sequentially primarily in NAGTA and EMEA.
  • Revenues from agricultural equipment sales in Q1/16 were $2,124 million, down 17.6% from $2,577 million in Q1/15
  • Revenue from construction equipment sales of $536 million were down 11.0% from $602 million in the same quarter a year earlier.


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com