- CNH Industrial (NYSE:CNHI) +2.8% pre-market after reporting much stronger than expected Q1 earnings and a 40% Y/Y rise in industrial net revenues to $7B, due to higher volumes driven by strong industry demand, particularly in Agriculture and Commercial and Specialty Vehicles.
- Q1 adjusted EBIT of industrial activities totaled $545M, swinging from a $148M loss in the prior-year period.
- Net sales by segment all topped expectations: Agriculture $3.04B, Commercial and Specialty Vehicles $2.81B, Powertrain $1.23B, and Construction $656M.
- Free cash flow of industrial activities was negative $400M as a result of ower than historical seasonal working capital cash absorption.
- CNH Industrial says it expects strong demand will continue across regions and segments for the rest of the year, forecasting full-year revenues to rise 14%-18% in 2021, up from its previous guidance 8%-12% growth.
- But the company also notes that adverse trends in raw materials, especially steel, as well as in freight and logistics costs, added to Q1 production costs and likely will continue for the rest of this year.