CNH Industrial beats by EUR 0.02, beats on revs; guides FY17 EPS above consensus, revs midpoint above consensus
- Reports Q4 (Dec) earnings of €0.14 per share, excluding non-recurring items, €0.02 better than the Capital IQ Consensus of €0.12; revenues fell 2.0% year/year to €7 bln vs the €6.34 bln Capital IQ Consensus.
- Co issues upside guidance for FY17, sees EPS of €0.39-0.41, excluding non-recurring items, vs. €0.33 Capital IQ Consensus Estimate; sees FY17 revs of €23-24 bln vs. €23.17 bln Capital IQ Consensus Estimate. In an effort to drive incremental structural improvements to its cost base, the Company intends to undertake several restructuring actions during 2017 as part of its Efficiency Program. The estimated 2017 expense of ~$100 million will result in incremental savings of ~$60 million in 2017, included in the adjusted diluted EPS guidance below, and $80 million on an annualized basis.
- "While the Agricultural Equipment market remained at historically low demand levels in 2016, our margin performance was in line with our expectations and we made significant progress on further reducing channel inventory," said Richard Tobin, Chief Executive Officer of CNH Industrial. "The Commercial Vehicles segment continues to improve in profitability and market share in the EMEA region. While the LATAM market was generally challenging for all segments, we are starting to see signs of recovery there, especially in the Agricultural Equipment segment with shipments up 30% in the fourth quarter of 2016 compared to the fourth quarter of 2015. In addition to solid operating execution, we were able to significantly over-achieve on our net industrial debt target for the year and to reduce our future interest costs through two capital markets transactions, both of which further our efforts to achieve an investment grade credit rating."