CNH Industrial reported first quarter consolidated revenues of $7.5 billion (up 37 percent compared to the first quarter of 2020), net income of $425 million and adjusted EBIT of Industrial Activities of $545 million (up $693 million), with strong performance from all segments year-over-year. Industrial Activities net cash was $0.6 billion as of March 31, 2021, with free cash flow seasonally negative by $0.4 billion.
"Our robust start to 2021 reflects both elevated demand from our end markets and the impressive performance of this entire CNH Industrial team," said Scott Wine, chief executive officer. "We overcame unprecedented supply chain challenges, rising commodity costs and the persistent impact of COVID-19 to deliver solid revenue growth and margin expansion, also above Q1 2019 performance, which testifies to the commitment, drive and ingenuity of our global workforce.
"Consistent with our emphasis on customer and dealer satisfaction, we made new technology investments in Monarch Tractor and Augmenta and are excited about the innovative products and services we will bring to market.
"All our businesses and brands executed well, and we were particularly encouraged by the strong results Agriculture delivered. And with our refocused efforts on the spin, the outperformance of Iveco and our On-Highway business was timely.
"With healthy momentum in our markets, agile and improving execution across our businesses, and an ambitious but achievable strategy in place, the CNH Industrial team is well-positioned for the rest of the year and beyond."
General improvement in market demand and in customer sentiment reflected increased economic activity globally and stronger commodity prices. CNH Industrial said it remains cautious about the future impacts on its end-markets and operations of restrictions on social interactions and business operations to limit the resurgence of the COVID-19 pandemic.
Rising demand is adding pressure to the supply chain, requiring diligent coordination to keep its production at desired levels. Adverse market trends in raw materials (particularly steel), freight and logistics costs have impacted product cost performance in Q1. Increasing input costs are expected in Q2, and pressure is likely to continue throughout the remainder of the year, the company said.
The company's order book in Agriculture more than doubled year-over-year for both tractors and combines, driven by strong growth in North America for tractors, and in South America for combines. Construction order book was up year-over-year in both Heavy and Light sub-segments, with increases in all regions. Truck order intake in Europe was up 96 percent year-over-year, with light duty trucks up 95 percent and medium and heavy-duty trucks up 101 percent.
This story also appears on Agricultural Equipment Guide.
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