CNH Industrial reported its fourth quarter earnings on Feb. 2, including $6.9 billion in consolidated revenue and $5.4 billion in agriculture revenue.

Net sales of Industrial Activities were $6,352 million, up 27.2% mainly due to favorable price realization and higher sales volumes, despite more than 4% adverse currency conversion impacts.

Net income for the quarter was $592 million, with diluted earnings per share of $0.43 (net income of $464 million in Q4 2021, with diluted earnings per share of $0.34). Adjusted net income was  $486 million.

Adjusted EBIT of Industrial Activities was $680 million, with both segments up year over year. Agriculture adjusted EBIT margin was at 13.1% and Construction at 3.5%.

Gross profit margin of Industrial Activities came in at 21.6%, (19% in Q4 2021) with improvement in Agriculture and Construction despite continued cost pressures. 

Revenue for the full year 2022 was $23.6 billion (vs. $19.5 billion in 2021). Ag revenue for the year was $18 billion, up 21.8% from $14.8 billion in 2021.

Agriculture

Agriculture net sales were up 29% to $5.4 billion, due to favorable price realization, higher sales volumes and better product mix, mostly driven by the North America, South America and Europe regions partially offset by negative impact of foreign exchange rates.

Gross profit margin was at 23.1%, with Gross Profit $394 million higher than in Q4 2021, mainly due to favorable price realization in the North America, South America and Europe regions more than offsetting higher manufacturing and purchasing costs across all regions. Adjusted EBIT was $701 million ($414 million in Q4 2021), with Adjusted EBIT margin at 13.1%.

Order book in Agriculture was down 23% year over year for tractors worldwide with all regions down except the Asia Pacific region. Order book for combines was down 20%, with declines in all regions except the Asia Pacific region. At above 2.2 times the pre-pandemic levels, order books remain strong in all regions. 

Looking at 2023, the company is forecasting its industrial activities net sales to be up 6-10% year-over-year.

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