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Research Tree provides access to ongoing research coverage, media content and regulatory news on CNH INDUSTRIAL NV. We currently have 14 research reports from 1 professional analysts.
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CNH INDUSTRIAL NV
CNH INDUSTRIAL NV
Mixed picture from J Deere for Q1 16/17
18 Feb 17
The group’s revenue increased by 2% to $5.63bn in the quarter through to 29 January while net earnings fell by 24% to $194m. Agricultural and turf revenue was unchanged at $3.6bn, whereas it fell in the construction and forestry division by 6% to $1.1bn. Positive consolidated growth exclusively stemmed from a rise in financial services (+9% to $696m) and ‘other’ (+93% to $231m). The group’s operating earnings were up by 2% to $416m, but this number excludes certain head office costs. Agricultural and turf achieved a 48% profit increase to $213m, while it fell in both construction and forestry (-51% to $34m) and financial services (-13% to $169m). Management blames continuously soft conditions in farming and construction for the profit setback, in particular in the USA and Canada.
All numbers headed south in Q4 16
31 Jan 17
CNHI’s preliminary Q4 US-GAAP accounts showed falling revenue (-2.0% to $7.0bn), EBIT (-50% to $162m), and net profit numbers (-59% to $95m). As a result, the full-year numbers also showed a negative trend (sales: -4% to $24.9bn, EBIT: loss of $9m vs. profit of $567m, net loss of $252m vs. profit of $253m). We are using the group’s IFRS accounts and these are no better. Full-year revenue was down by 4% to $25.3bn, EBIT by 55% to $638m, and net earnings turned around from a profit of $236m in 2015 to a loss of $373m. As a consequence, management will propose a dividend of €0.11 compared to €0.147 paid for 2015. All these numbers are clearly short of what we had anticipated.
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.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.
Scott deal puts spotlight back on corporate strategy and valuation
17 Mar 17
The acquisition of Scott Safety by 3M announced yesterday is not a huge surprise but it puts the spotlight back on (1) Avon’s corporate strategy as two strong competitors merge and (2) Avon’s break-up valuation given the rich multiple (12.9x EBITDA) being paid by 3M. Avon and other competitors, particularly MSA Safety, cannot ignore the fact that Scott, which is the leader in SCBA (self-contained breathing apparatus) market and 3M, which derives the bulk of sales from industrial hard hats and masks, would together have the most comprehensive portfolio of products in the PPE (Personal Protective Equipment) market. The good news for investors is that if we were to apply similar EBITDA multiple, then Avon’s Protection & Defence business alone would account for the entire market cap. In effect, at the current share price, investors are getting the Dairy business for free. Our sum-of-the parts model now values the shares at 1,279p, up 7% compared with 1,200p previously.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017