Posted inMachinery

Fitch Ratings improves CNH Industrial’s Outlook to Positive

Fitch Ratings improves CNH Industrial’s Outlook to Positive
Fitch Ratings improves CNH Industrial’s Outlook to Positive

Fitch Ratings (“Fitch”) has improved the Outlook of CNH Industrial N.V. to Positive from Stable. Fitch has also affirmed CNH Industrial N.V.’s and CNH Industrial Capital LLC’s Long-Term Issuer Default Ratings at ‘BBB-‘.

CNH Industrial’s 2019 first quarter results were announced in May” 

  • Industrial Activities net sales were $6.0 billion, down 5% compared to the first quarter 2018 (up 2% on a constant currency basis), with currency translation impact more than offsetting strong price realization performance in Agriculture and Construction, and sales volume improvements in Commercial and Specialty Vehicles
  • Adjusted EBIT of Industrial Activities increased 7% to $278 million, with a 4.6% margin (up 50 basis points). Adjusted EBITDA of Industrial Activities was $525 million, with an 8.7% margin, flat compared to the first quarter of 2018
  • Adjusted net income was $248 million in the first quarter of 2019, with adjusted diluted EPS of $0.18 (up 29% compared to the first quarter of 2018), a record first quarter result
  • Net industrial debt at March 31, 2019 was $1.5 billion, $0.9 billion higher than at December 31, 2018 as a result of normal seasonal increase in working capital in the first quarter
  • In March, CNH Industrial signed a €4 billion committed revolving credit facility, replacing an existing €1.75 billion facility, and CNH Industrial Finance Europe S.A. issued €600 million in principal amount of 1.75% notes due 2027 and guaranteed by CNH Industrial N.V.
  • For 2019, CNH Industrial is reaffirming its guidance: net sales of Industrial Activities expected at approximately $28 billion, adjusted diluted EPS between $0.84 and $0.88, and net industrial debt between $0.4 billion and $0.2 billion