Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CNH INDUSTRIAL NV. We currently have 12 research reports from 1 professional analysts.
|21Dec16 11:45||PRN||CNH Industrial announces final results of cash tender offer for senior notes due 2017 issued by its subsidiary Case New Holland Industrial Inc.|
|21Dec16 09:55||PRN||AE50: ASABE names innovations from Case IH and New Holland Agriculture among top 50 for 2017|
|20Dec16 12:41||PRN||Behind the Wheel: The CASE Rodeo|
|20Dec16 12:28||PRN||Behind the Wheel: The CASE Rodeo|
|16Dec16 08:29||PRN||Iveco and SAIC Restructure their Joint Ventures in China|
|16Dec16 08:13||PRN||Iveco and SAIC Restructure their Joint Ventures in China|
|14Dec16 12:05||PRN||Farm & Construction Machinery Stocks on Investors' Radar -- Deere, Manitowoc, Joy Global, and CNH Industrial|
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CNH INDUSTRIAL NV
CNH INDUSTRIAL NV
John Deere continues to suffer
23 Nov 16
The Financing division reported net earnings of $82m (-33%) for the last quarter and $342m (-31%) for the October 2016 fiscal year. Management blames less-favourable financing spreads, higher losses on residual values and higher provisions for credit losses for the poor divisional results. The consolidated group suffered a 19% net profit fall to $285m in Q4 and 21% to $1.52bn in the full-year. Net sales of the industrial activities continued falling in Q4 (-4.8% to $5.65bn) and in the full-year (-9.3% to $23.4bn). Management sees revenue for agricultural machinery to be about flat in the current fiscal year. While it is likely to fall in the USA, Canada, and Europe, it is expected to be flat to slightly up in Asia and up by about 15% in LatAm. US and Canadian turf and utility equipment turnover is expected to be unchanged. Finally, it expects currency movements to have a marginally positive impact. We wonder how this might happen in view of the recent dollar strength. In addition, the outlook for LatAm seems extremely optimistic.
Q3 16 was again a disappointment
31 Oct 16
The group’s revenue (we use the company’s IFRS accounts as only these allow us to compare the numbers with our universe) fell by a good 2% to $5.84bn in the last quarter while EBIT was also down by slightly more than 2% to $216m. We had expected $5.92bn and $270m. CNHI showed a 5% revenue fall to $18.2bn for the 9M and a 70% EBIT fall to $275m. However, management had to charge a total of $551m to provisions in H1 16 as a result of the EU investigation into illegal truck price fixing. EBIT, however, was also down when we exclude restructuring costs and other unusual items (-15% to $228m in Q3 and -13% to $866m through to September).
$75m disposal gain limited John Deere’s Q3 and 9M profit setback
19 Aug 16
The revenue decline of both the Agricultural and Construction Equipment divisions accelerated in Q3. The former division saw its turnover falling by 11% to $4.70bn in the last quarter (through to July) and by 7% to just above $14bn in the 9M. The respective numbers for Construction Equipment were -24% to $1.16bn and -21% to $3.7bn. In spite of this, Agricultural Equipment achieved a 21% EBIT gain to $571m in the last quarter but the operating result was down by 4% to $1.33bn in the 9M. However, these numbers include the above disposal gain from the listing of SiteOne Landscapes, in which Deere continues to own a 24% stake. Agricultural Equipment saw its EBIT falling by 58% to $54m in Q3 and by 58% to $197m in 9M. Finally, Financial Services suffered an operating profit setback of 20% to $191m in Q3 and of 26% to $545m in 9M. Management blames the lack of volume and negative currency impacts for the revenue and profit falls of the two manufacturing divisions. In addition, it blames less-favourable financing spreads, a higher provision for credit losses, and higher losses on lease residual values for the profit decline of Financial Services.
Some profit stabilisation in Q2 16
26 Jul 16
Revenue fell by another 2.5% to just below $6.9bn in Q2 which brought the H1 number to $12.4bn, a decrease of 5.8%. This is only marginally below our projected $12.6bn. The group’s Q2 trading profit was almost unchanged at $454m but EBIT fell by another 7% to $394m. Finally, net profit fell by 33% to $119m which translated into a H1 loss of $410m compared to a profit of $206m in H1 15. Whereas the trading profit is marginally higher than our projected $441m, net earnings are clearly short of our calculated $156m.
Deere’s revenue and profits continuously under pressure
20 May 16
The group released Q2 15/16 numbers (FYE 31 October) and these show a continuing downward trend, in particular for its Construction & Forestry division and for Financial Services. While revenue of the Agricultural & Turf division was almost unchanged in Q2 (-0.4% to $5.74bn), revenue of Construction & Forestry fell by 16% to $1.37bn. Turnover of Financial Services was also almost unchanged (-2% to $117m). All of these variations were less strong in Q2 compared to Q1. However, divisional operating earnings deteriorated faster in Q2 in both Construction & Forestry (-61% to $74m) and Financial Services (-40% to $160m), whereas the profit slump was small at -4% to $614m in Agricultural & Turf. Management blames higher losses on lease residual values for the profit collapse of Financial Services whereas the profit fall in Construction & Forestry is simply the result of falling volumes. For the full fiscal year, management expects retail sales of agricultural machinery to fall in all regions around the world. The rate of decline is expected to come in between 15% and 20% in both North and Latin America and to be unchanged or show a fall of up to 5% in both Western Europe and Asia. We are currently expecting CNHI’s Agricultural Equipment division to suffer an 8% revenue fall in 2016 while our projection for Construction Equipment shows a marginal increase. EBIT of the former is expected to fall by 16% while we see a marginal EBIT improvement for the latter division. As a result of Deere’s numbers, our EBIT projection for Construction Equipment might be on the high side.
US-GAAP accounts show Q1 16 net loss of $512m
02 May 16
As CNHI is a European listed company and as we are using IFRS accounts for almost all the other companies in our universe, we still wait for the Q1 numbers. However, the group’s US-GAAP accounts show a rather poor performance. CNHI’s industrial revenue fell by 10% to $5.08bn and including revenue of the Finance division it was also down by 10% to $5.37bn. Simultaneously, the operating result fell by 18% to $232m and the bottom line shows a net loss of $512m vs. a profit of $22m generated in Q1 15.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
Trading conditions difficult but acquisitions underpin growth
23 Jan 17
FY16 revenue will be £53.7m (FY15: £44.8m), in line with ZC estimate of £53.9m, showing growth of c. 20% yoy underpinned by the three acquisitions undertaken in the year. However, due to higher costs relating to the acquisitions and, to a lesser extent, gross margin pressure, PBT will be in the region of £7.0 to £7.2m equating to growth of between 5.5% and 8.0%. As a result, FY16 ZC profit forecast is reduced by 8.0% to £7.0m. The impact in FY18 and FY19 is muted by the announcement of a further acquisition leading to an increase in revenue estimates of 8.7% whilst profit estimates fall c.4.5% in each year, respectively. Despite the decrease in forecasts the PER multiple on FY17 earnings remains single digit at just 9.1x, against a distributor average of 15.8x. With commitment to the forecast dividend increase reiterated, Flowtech offers an above average yield of 4.1%
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.