(Telestock) – CNH Industriala giant in the machinery and services sector, has closed its second quarter of 2024 with a Net income of $438 million and earnings per share of $0.34, compared to net income of $710 million and earnings per share of $0.52 for the quarter ended June 30, 2023.
THE consolidated revenues were $5.49 billion (down approximately 16% from the second quarter of 2023) and net sales from industrial activities were $4.80 billion (down approximately 19% from the second quarter of 2023).
Net cash provided by operating activities was $379 million and cash generation was Industrial Free Cash Flow was $140 million in the second quarter.
“I am thrilled to be back part of the hard-working CNH team,” commented the CEO Gerrit Marx (who was CEO of Iveco) – I have long admired this leading company for its iconic brands and truly global presence. After spending the first few weeks visiting our factories, dealers and customers, I was impressed by the attention paid to improving distinctive positions of our brands, developing our product pipeline, accelerating our technology offerings and turning around the construction industry.”
“I’m coming back at a difficult time for our sectors and I appreciate the continued efforts of our employees in the last quarter – he added – We will continue to manage the business prudently through 2024, positioning for 2025. I am confident in our success and look forward to presenting our strategy to you at an investor day in early 2025″.
The Restructuring program continued as planned during the quarter and CNH expects to achieve a 10-15% run rate reduction on total labor and non-labor SG&A expenses. The company incurred restructuring charges totaling $114 million in the second quarter of 2024, including $53 million in 2023, and now expects to incur up to $180 million in total.
The company expects that the Global retail sales to continue to be weaker in both the agricultural and construction machinery markets in the second half of 2024.
Following lower industry sales projections, the company is updating its outlook for 2024 as follows: Agricultural segment net sales down 15% to 20% year-over-year, including currency translation effects (previously -11% to 15%); Agricultural segment adjusted EBIT margin of 13.0% to 14.0% (previously 13.5% to 14.5%); Construction segment net sales down 15% to 20% year-over-year, including currency translation effects (previously down 7% to 11%); Construction segment adjusted EBIT margin of 5.0% to 6.0% (unchanged); Industrial operations free cash flow of $0.7 billion to $0.9 billion (previously $1.1 billion to $1.3 billion). Adjusted EPS between $1.30 and $1.40 (previously between $1.45 and $1.55).