CNH Industrial N.V. (NYSE:CNHI) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 09:30 am ET


CNH Industrial N.V. (NYSE:CNHI) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and afternoon, ladies and gentlemen, and welcome to today's CNH Industrial 2020 Second Quarter and First Half-year Results Conference Call. [Operator Instructions]

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

Federico Donati

Thank you, Andrea. Good morning and afternoon, everyone. We would like to welcome you to the webcast and conference call for CNH Industrial second quarter of 2020 results for the period ending June 30. 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 the express written consent of CNH Industrial is strictly forbidden. We are pleased to have here with us today our chair and acting Chief Executive Officer, Suzanne Heywood; and our CFO, Oddone Rocchetta, who will be hosting today's call. They will use the material available for download from the CNH Industrial website. After the presentation, we'll 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 risks and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's most recent report 20-F and annual report as well as other periodic reports and filings with the U.S. Securities and Exchange Commission and the equivalent authorities in the Netherlands and 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. One final remark, once again, our team is connecting from different countries. So please forgive us if there are moments of silence during the call while we manage the transition between speakers.

I will now turn the call over to Suzanne.

Suzanne Heywood

Thank you, Federico, and good morning, good afternoon, everyone. I would like to begin today with a short update on how we're responding to the current pandemic and our priorities as conditions start to improve. After that, I will outline our Q2 results and then share some of our thinking on how we see the second half of the year playing out, assuming, of course, that there are no further unexpected events. This second quarter has been one in which the end market conditions have changed very rapidly. However, we have navigated this, I believe, with some success. By May, we had all our plants and depots back up and running, with all our new COVID health and safety protocols fully implemented. This meant that we were well positioned to supply products into end markets that strengthen ahead of expectations, enabling us to deliver business performance that was better than we had expected at the end of the first quarter. Overall, in this quarter, we are reporting consolidated net revenues of $5.6 billion. Net sales of Industrial Activities were $5.2