CNH Industrial Announces Increase in Earnings for 2023 | A Success Story

CNH Industrial, a prominent global manufacturer of agricultural and construction equipment, has recently announced its financial performance for the fourth quarter and entire year of 2023.

In the fourth quarter of 2023, CNH reported a net income of $617 million, surpassing the previous year’s net income of $592 million. Additionally, earnings per share rose to $0.46, up from $0.43 in the same period of 2022. Despite a 2% decrease in consolidated revenue, which amounted to $6.79 billion, the net sales of Industrial Activities were $6.02 billion, representing a 5% decline compared to the same quarter in 2022. However, Net cash provided by operating activities soared to $1,515 million, and Industrial Free Cash Flow reached $1,630 million in Q4 2023.

Looking at the entire year, CNH Industrial achieved a 5% increase in consolidated revenues, amounting to $24.7 billion, with Net sales of Industrial Activities reaching $22.1 billion, up nearly 3% from the previous year. Notably, net income for 2023 was $2,383 million, a substantial improvement compared to 2022. Diluted earnings per share also witnessed a significant surge to $1.76, from $1.49 in 2022. Adjusted net income was recorded at $2,313 million, reflecting a 15% rise from 2022, with adjusted diluted earnings per share standing at $1.70, an increase from $1.46 in 2022. Furthermore, net cash provided by operating activities for the entire year amounted to $907 million, while Industrial Free Cash Flow reached $1,216 million.

CEO Scott W. Wine declared, “Two years ago, we established ambitious margin targets for our Agriculture and Construction segments, which we achieved earlier than planned. These results, in conjunction with record full-year revenue and net income, reflect the CNH team’s tireless efforts to simplify the company, expand through-cycle margins, integrate world-class technology with our great iron, and put our customers at the center of everything we do. With more challenging end markets in Q4, robust contributions from our cost reduction focus and disciplined commercial execution drove margin expansion, and we will remain aggressive on these fronts moving forward.”

With a strong finish to 2023, CNH Industrial has showcased its resilience and adaptability to market fluctuations, positioning itself for sustained growth and success in the future.