CNH Industrial consolidated revenues of $24.872 million for the full year 2016 were down 4% compared to 2015. Net sales of industrial activities were $23.669 million for the year, down 4.1%.

Reported net loss for the full year 2016 was $249 million, including the previously announced non-tax deductible charge of $551 million following the finalization of the European Commission settlement, a charge of $60 million ($38 million after-tax) related to the repurchase of portions of Case New Holland Industrial Inc. 7.875% Notes due 2017, an exceptional charge of $34 million due to the re-measurement and impairment of certain assets of their Venezuelan subsidiary, as well as a one-time non-cash tax charge of $59 million related to the corporate reorganization of its Latin American operations, including changes to valuation allowances on deferred tax assets.

Adjusted net income was $482 million for the full year, up 1.7% compared to 2015.

Operating profit of industrial activities was $1.291 million for the full year 2016 ($1.432 million in 2015), with an operating margin of 5.5% (5.8% in 2015). 

In the fourth quarter of 2016, consolidated revenues were $6,998 million, down 2% compared to the fourth quarter of 2015. Net sales of industrial activities were $6,682 million for the fourth quarter of 2016, down 2.7% compared to the fourth quarter of 2015.

Reported net income was $96 million in the fourth quarter of 2016, compared to $231 million in the fourth quarter of 2015, with adjusted net income of $197 million for the quarter, compared to $262 million in the fourth quarter of 2015.

In the fourth quarter of 2016, operating profit of industrial activities was $412 million, compared to $563 million for the fourth quarter of 2015, with an operating margin of 6.2% (8.2% for the fourth quarter of 2015).

Full year 2016 income taxes amounted to $298 million ($360 million in 2015). Adjusted income taxes(1)(2) for full year 2016 amounted to $265 million ($368 million in 2015). The adjusted effective tax rate (adjusted ETR)(1)(2) was 39%, an improvement of 7 p.p. from prior year adjusted ETR.

Net industrial debt was $1.6 billion at December 31, 2016, $1.1 billion lower than September 30, 2016 and in line with December 31, 2015, as the net industrial cash flow generated during the year offset the impact of the European Commission settlement payment, the $0.2 billion in dividends paid and negative foreign exchange translation impacts. Total debt of $25.3 billion at December 31, 2016, was down $1.0 billion compared with December 31, 2015. As of December 31, 2016, available liquidity(1)(2) was $8.7 billion, down $0.6 billion compared with December 31, 2015.

Agricultural equipment’s net sales decreased 8.2% for the full year 2016 compared to 2015 (down 7.2% on a constant currency basis), primarily as a result of unfavorable industry volume and product mix in the row crop sector in NAFTA, and in the small grain sector in EMEA. Net sales increased in LATAM, mainly due to improvement in the Brazilian market and the positive impact of currency translation, and were flat in APAC. In the fourth quarter of 2016, agricultural equipment’s net sales decreased 5.1% compared to the fourth quarter of 2015 (down 5.8% on a constant currency basis).

Full year 2016 operating profit was $818 million, a $134 million decrease compared to 2015, mainly due to lower volume and unfavorable product mix in NAFTA and EMEA, partially offset by favorable price realization and cost containment actions, including lower material cost. Operating margin was 8.1% (down 0.5 p.p. compared to 2015). In the fourth quarter of 2016, operating profit was $272 million ($348 million in the fourth quarter of 2015). Operating margin decreased 2.1 p.p. to 9.6%.

Construction equipment’s net sales decreased 9.4% for the full year 2016 compared to 2015 (down 8.6% on a constant currency basis), due to unfavorable industry volume and product mix in NAFTA and LATAM and negative price realization. In the fourth quarter of 2016, net sales decreased 5.1% compared to the fourth quarter of 2015 (down 5.9% on a constant currency basis).

Full year 2016 operating profit was $2 million compared to $90 million in 2015. The decrease was due to lower volume and unfavorable product mix, particularly in the heavy product range in NAFTA and in LATAM, and negative price realization, partially offset by cost containment actions. In the fourth quarter of 2016, operating loss was $30 million compared to $18 million operating profit in the fourth quarter of 2015, as a result of lower industry volume, a significant reduction in manufacturing volume to reduce inventories to anticipate new product launches, negative price realization and an unfavorable foreign exchange impact on product cost, partially offset by cost containment actions.