On Feb. 8, 2022, CNH Industrial reported its fourth quarter and full year 2021 results, the last year of operations prior to the demerger of Iveco Group effective Jan. 1, 2022.
For the fourth quarter, CNH reported consolidated revenues of $9.1 billion, up 7% vs. the fourth quarter of 2020. Agriculture net sales for the quarter were up just over 21% to about $4.2 billion.
For the full year, CNH Industrial reported consolidated revenues of $33.4 billion, up 28% from 2020. Excluding the Iveco Group, net sales for industrial activities were $19.5 billion, up 32% from 2020. Net sales from agriculture for the full year were $14.7 billion, up nearly 35% from $10.9 billion in 2020.
“I am proud of, and profusely thankful for, how our CNH Industrial team managed through a difficult year. Between external challenges: COVID, supply chain, etc. and internal opportunities: spin, Raven acquisition and integration, and our customer focused reorganization, they rose to every occasion while still exemplifying our renewed focus on delivering for our customers and dealers," said CEO Scott Wine. "Their efforts drove Company record revenue and earnings per share, and it is especially rewarding to generate such results in our final year as a combined entity. This performance represents a solid foundation for both Iveco Group and CNH Industrial’s future success, particularly as it includes our second consecutive year of net cash, with over $1.7 billion of positive free cash flow of Industrial Activities for 2021.
"In Q4 we outperformed expectations by managing our supply chain, specifically microchip shortages, better than anticipated, and while these pressures are likely to persist, so is our team’s demonstrated ability to overcome them. With continued strength in our end markets and order books, and a comprehensive strategy for the future, CNH Industrial is excited to enter 2022 as a pure play in agricultural and construction equipment.”
Analyst Commentary
In a note to investors, Senior Research Analyst Mig Dobre said the firm remains positive on John Deere's stock based in part on CNH Industrial's earnings report.
"CNHI reported 4Q21 pricing +11% in Ag and +9% in Construction; price increases more than offset increased production costs. Pricing expected to remain solid. 2022 top-line guidance calls for 10-14% growth roughly split between volume and pricing. Recall Deere's ag pricing guidance was around 8% in FY22; competitors are clearly following suit which should improve overall pricing realization.
"Production is going up in 2022 despite supply chain constraints; OEMs appear increasingly able to navigate component/chip shortages though headwinds expected to persist in 1H22. CNHI ... called out chip availability limiting ability to ship large/mid-sized tractors. 2022 expected to have more normal seasonality, but 1H will be concealed by supply chain related production constraints; chip supply at least 9-12 months away from normalization."
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