CNH Industrial N.V. (NYSE:CNHI) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 09:30 am ET


CNH Industrial N.V. (NYSE:CNHI) Q4 2018 Earnings Conference Call Transcript


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Good morning and afternoon, ladies and gentlemen, and welcome to today's CNH Industrial 2018 Full Year and Fourth Quarter Results Conference Call. For your information, today's conference is being recorded. After the speakers' remarks, there will be a question-and-answer session.

At this time, I'd like to turn the call over to Federico Donati, Head of Investor Relations. Please go ahead, sir.

Federico Donati

Thank you, Emma. Good morning and afternoon, everyone. We would like to welcome you to the CNH Industrial fourth quarter and full year 2018 results webcast conference call. This call is being broadcast live on our website and is copyrighted by CNH Industrial. Any other use recording or transmission of any portion of this broadcast without expressed written consent of CNH Industrial is strictly forbidden. We are pleased to have here with us today CNH Industrial's CEO, Hubertus Muhlhauser; and our CFO, Max Chiara, who will be hosting today's call. They will use the material you may download from the CNH Industrial website. After their presentation, we will be holding a Q&A session.

As a final comment, please note that any forward-looking statements we might be making during today's call are subject to the risk and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual result to differ materially is contained in the Company's most recent report 20-F and EU Annual Report as well as other periodic reports and filings with the US Securities and Exchange Commission and the equivalent authorities in the Netherlands and in Italy.

The Company presentation may include certain non-GAAP financial measures. Additional information including reconciliation to the most directly comparable GAAP financial measures is included in the presentation material. Please also note that starting from Q1 2019 onwards, as a result of the new jack Organization, we have consistently updated the geographical composition of our regional sales information as indicated in supporting material of this earnings release.

I will now turn the call over to Hubertus.

Hubertus Muhlhauser

Thank you, Federico, and good morning and good afternoon to everybody on the call. The last time that we spoke, I stated that one of our top priorities that would guide us over the next quarters was the continuous profitability improvement and as you have seen from the press release, we have met or even exceeded our financial targets in 2018. Despite all the global uncertainties, we closed the year with strong Q4 results and have been able to exceed our own expectations. For the fourth quarter, industrial sales were up 3% in constant currency and adjusted EBIT for Industrial Activities was up more than 20% with adjusted diluted EPS more -- up more than 60%. For the full year, industrial net sales were up 7% with adjusted EBIT up 40% and both adjusted net income and adjusted EPS were up by over 70% to $1.1 billion or $0.80 per share, and that marks a historical record for the Company since its inception in 2013.

On the