Key Takeaways:
- Strategic Financing: CNH Industrial announces a new €3.25 billion committed revolving credit facility.
- Broad Banking Coalition: Supported by 18 international banks, reflecting strong market trust.
- Flexible Terms: Initial 5-year term with options for two one-year extensions.
- Post-Demerger Adjustment: Aligns with CNH’s revised funding needs after the Iveco Group spin-off.
- Banking Confidence: Demonstrates continued confidence from major financial institutions.
On April 19, 2024, CNH Industrial announced the signing of a €3.25 billion committed revolving credit facility intended for general corporate purposes.
Details of the Agreement
The facility, which involved the collaboration of 18 banks offering commitments initially exceeding €3.5 billion, showcases strong backing from the financial sector. According to CNH Industrial’s press release, the company stated, “This agreement is a testament to the strong relationships we maintain with our banking partners and their confidence in our strategic direction and financial health.”
Terms and Conditions
The credit facility, set for a base term of five years, includes two extension options of one year each, exercisable on the first and second anniversaries of the agreement.
CNH Industrial Latest News
Appoints Gerrit Marx as New CEO to Take Helm in July 2024 (2024/04/22)
CNH Industrial N.V. has announced Gerrit Marx as the new CEO, effective July 1, 2024. Marx will replace Scott Wine, who will step down at the end of the current business plan cycle. Marx returns to CNH from Iveco Group, where he served as CEO. Under Wine’s leadership, CNH achieved record revenues and EBIT margins, successfully turning around its construction segment and acquiring Raven Industries.
Triumph at iF Design Awards with Innovative Agricultural Machines (2024/03/15)
CNH’s Case IH and STEYR brands have won iF Design Awards, which recognize design excellence. Case IH’s Quadtrac 715 and STEYR’s Plus Tractor won the awards. The Quadtrac 715 minimizes soil impact while enhancing productivity and fuel efficiency. The STEYR Plus Tractor offers a striking aesthetic and boosts operator experience and farm productivity.
Partners with Telecom Argentina (2024/03/05)
CNH Industrial (Profile) has partnered with Telecom Argentina to improve rural connectivity in Latin America, covering around 15 million hectares of farmland. The initiative ensures farmers can optimize the use of precision agriculture technologies to boost productivity. CNH has formed strategic collaborations with network providers like TIM in Brazil and the BYOC approach to tackle the challenge of inconsistent cellular access in remote farming areas. The company is committed to enhancing rural connectivity and transforming the agricultural landscape of Latin America.
CNH Ventures Invests in Bem Agro (2024/02/21)
CNH Ventures has acquired a minority stake in Bem Agro, a Brazilian agronomic mapping startup utilizing AI and aerial images, to bolster agricultural technology and sustainable farming. This partnership enhances decision-making for farmers by improving field operations, resource allocation, and yield through precise agronomic maps that facilitate guidance in low-visibility conditions, reduce crop damage, and minimize herbicide use. Aimed at expanding the reach of Bem Agro’s solutions across CNH brands in Brazil, Indonesia, and Thailand, this move is driven by positive customer and dealer feedback, highlighting CNH’s commitment to customer-inspired innovation and its strategic expansion in precision agriculture and sustainable farming practices globally.
CNH Reports Strong Performance Amid Challenging Market Conditions (2024/02/15)
CNH Industrial showcased strong financial performance in the fourth quarter and full year of 2023, with a 4% increase in Q4 net income despite a slight revenue drop, and a 17% full-year net income boost on higher revenue. Significant margin improvements in Agriculture and Construction segments and a $500 million share buyback program reflect the company’s robust financial health and strategic focus on cost efficiency and shareholder value. Despite anticipating lower industry sales in 2024, CNH Industrial aims to maintain its focus on margin improvement and cost management for sustained growth.
New Holland Introduces UltraFeed™ (2024/02/14)
Investing in Eco-Friendly Agriculture (2024/01/24)
CNH Ventures has partnered with Nature’s Net Wrap, a Canadian startup, to develop the first compostable net wrap for agricultural bales, aiming to significantly reduce plastic waste in agriculture by around 2.5 million tons annually. This innovation, made from biopolymers derived from renewable resources, is in response to growing market demand for sustainable solutions and is part of CNH’s broader commitment to enhancing sustainable agricultural practices globally, with a product launch anticipated in 2024.
€150M Investment in Harvesting Center of Excellence (2024/01/18)
CNH Industrial’s €150 million investment in its New Holland Harvesting Center of Excellence in Zedelgem, Belgium, signifies a major enhancement in research and development and production capabilities. This investment is geared towards the development of the new CR11 combine harvester, featuring a redesigned assembly line for various models and the introduction of an automated guiding system for increased manufacturing flexibility. Supported by the Flemish Government’s Flanders Innovation & Entrepreneurship Agency, this initiative not only fosters innovation but also bolsters employment and economic growth in the region. This strategic investment reaffirms CNH’s commitment to leading the agricultural equipment industry with high-tech manufacturing and innovative global solutions.
CNH, The Company Behind New Holland Ag Introduces Its Global Leadership Team (2024/01/10)
CNH Industrial has announced a major restructuring of its leadership by replacing its Senior Leadership Team (SLT) with a more focused Global Leadership Team (GLT). This new streamlined team, led by CEO Scott W. Wine, includes key leaders responsible for finance, agriculture, construction, technology, and more. The GLT is tasked with driving company performance, executing strategic initiatives, and providing leadership to about 40,000 employees across various business segments. The restructuring aims to enhance operational efficiency, improve strategic execution, and increase shareholder value by aligning regional and support function leaders under the GLT for quicker, customer-centric decision-making. This change reflects CNH’s commitment to technological leadership, operational efficiency, and customer support, with a focus on innovation, sustainability, and productivity in its agricultural, construction, and regional brand offerings.
CNH Industrial’s Exit From Euronext Milan (2024/01/02)
CNH Industrial N.V. has completed its voluntary delisting from Euronext Milan, transitioning to an exclusive listing on the New York Stock Exchange. This move is a key part of CNH’s simplification journey, aimed at becoming more customer-centric, efficient, and profitable. The decision reflects the majority of CNH’s stock trading on the NYSE and aligns with its evolving business profile and investor base. The transition to a single listing is expected to enhance liquidity, streamline compliance, and improve investor focus on the company’s activities. While acknowledging its decade-long relationship with Euronext Milan, CNH looks forward to its future on the NYSE, supported by the advisory of Goldman Sachs & Co. LLC. This shift signifies a major step in CNH’s transformation into an agriculture and construction equipment pure-play and represents a strategic pivot in its corporate trajectory.
Earns Six 2024 AE50 Awards (2023/12/22)
Case IH and New Holland have earned six 2024 AE50 awards from ASABE for their innovative agricultural contributions. The Case IH Steiger 715 Quadtrac tractor boasts 778 peak horsepower, while the AFS Furrow Command and Toolbar Lift System revolutionize seed and fertilizer placement. The New Holland T6.180 Methane Power tractor is the world’s first commercially available methane-powered tractor. The New Holland T7 Long Wheelbase tractor integrates advanced connectivity and precision tools, improving torque, power, and fuel efficiency.
CNH Industrial’s Commitment to Inclusive Agriculture (2023/12/21)
CNH Industrial, a leading equipment and services company, is committed to innovative and inclusive farming solutions. Their collaboration with Brazilian farmer Fernando Dalmolin to create the TL5 ‘Acessível’ tractor for farmers with disabilities exemplifies their mission of “Breaking New Ground,” focusing on innovation, sustainability, and productivity. CNH offers a diverse portfolio catering to agriculture and construction needs through global brands like Case IH, New Holland, CASE, and more, complemented by regional brands with specialized equipment. With a legacy of over two centuries and a dedicated workforce of over 40,000 employees, CNH Industrial is at the forefront of empowering global customers to foster growth and build a sustainable future.
CNH Industrial Posts Q3 Results & S&P Upgrade To BBB+ (2023/12/01)
CNH Industrial N.V., the company behind agricultural brands such as New Holland, has reported its financial results for the third quarter of 2023, showcasing resilience and adaptability in a fluctuating global economy. With a slight increase in net income and earnings per share compared to last year, the company has demonstrated its ability to sustain growth even as specific market segments experience softening demand. Despite a modest 1% decrease in net sales for Industrial Activities, the company’s consolidated revenues climbed to nearly $6 billion. The favorable pricing across its segments and a 6% increase in construction net sales contributed to the overall positive revenue outcome. Gross profit margins improved, and both the Agriculture and Construction segments saw margin expansion. Operating cash flows remained strong, although free cash flow absorption and increased consolidated debt highlight the need for careful financial management in the future.
Read more here.
On November 30, 2023, S&P Global Ratings made the following credit rating changes for the company and its subsidiaries:
- Long-term issuer credit ratings for CNH Industrial N.V. and CNH Industrial Capital LLC were raised from ‘BBB’ to ‘BBB+’.
- The short-term issuer credit rating for CNH Industrial N.V. and CNH Industrial Capital LLC was affirmed at ‘A-2’.
- Issue-level ratings on CNH Industrial N.V. and its industrial subsidiaries’ debt were raised from ‘BBB’ to ‘BBB+.’
- Issue-level ratings on CNH Industrial Capital LLC’s senior unsecured debt were raised from ‘BBB’ to ‘BBB+.’
These rating changes indicate an improvement in the creditworthiness of CNH Industrial N.V. and its subsidiaries and are expected to have a positive impact on their ability to access capital markets and secure funding at lower costs.
CNH Industrial Shifts to NYSE, Initiates $1 Billion Buyback (2023/11/07)
CNH Industrial has decided to delist its shares from Euronext Milan and focus on the New York Stock Exchange due to a shift in trading volume since the company’s restructuring in early 2022. Along with the delisting announcement, CNH Industrial has launched a share buyback program from November 2023 to March 2024. The transition to the NYSE aims to enhance market liquidity and investor engagement. The company expresses gratitude to Euronext Milan and looks forward to its future on the NYSE. Additional details will be available on the CNH Industrial website.
CNH Industrial Wins Multiple Agritechnica Innovation Awards for Advancements in Sustainable Farming (2023/10/31)
CNH Industrial won five medals at this year’s Agritechnica Innovation Awards, conferred annually by the DLG German Agricultural Society. New Holland Agriculture, a brand under CNH Industrial, won the event’s only gold medal for its new Twin Rotor Combine Harvester Concept. Another silver medal was awarded for the T4 Electric Power tractor, the industry’s first all-electric tractor with autonomous features. Case IH, another brand under CNH Industrial, was spotlighted for its innovative Axial-Flow feed rate radar system. STEYR, CNH Industrial’s specialized tractor brand for European farming, received a silver medal for its unique Hybrid CVT tractor prototype. These awards underscore the company’s dedication to sustainability as a central pillar of its purpose.
A Sustainable Push: CNH’s Commitment in Review (2023/10/27)
CNH Industrial has released the latest edition of its “A Sustainable Year” digital magazine, showcasing its commitment to sustainability and innovation. The magazine emphasizes the company’s three pillars of reducing carbon footprint, championing circularity and eco-efficiency, and promoting inclusion, equity, and engagement. CNH’s dedication to innovation is evident in its dynamic simulator for agriculture, electrified machinery, and thought leadership pieces in the magazine. The company’s efforts have earned them recognition in the top 1% of the S&P Global ESG Score 2022 and the CDP annual A-List. With a history of over two centuries and globally recognized brands such as Case IH and New Holland, CNH Industrial is dedicated to providing top-tier solutions that drive efficiency and success while empowering customers to create a better world.
CNH Industrial Invests in Advanced Farm Technologies to Accelerate Smart Harvesting (2023/10/04)
CNH Industrial has invested in Advanced Farm Technologies, a California-based start-up that specializes in the robotic harvesting of fruits. The investment aims to accelerate the development and commercialization of smart harvesting technologies to address labor costs and efficiency. The collaboration between CNH and Advanced Farm Technologies aims to improve productivity by up to five times. Advanced Farm Technologies combines machine learning and computer vision to pick the best fruits during the day or at night. The company’s tech stack includes robotic arms with gentle grippers, a serial-hybrid drive system, autonomous navigation, and automated bin handling. The investment is part of CNH Industrial’s broader strategy to bring cutting-edge solutions to its portfolio. The collaboration between CNH Industrial and Advanced Farm Technologies is expected to revolutionize how fruits are harvested and contribute to the broader goals of sustainable and efficient agriculture.
CNH Industrial Leads the Way in Agricultural Innovations (2023/09/28)
CNH Industrial is revolutionizing the farming landscape with groundbreaking agricultural innovations. Their recent achievements at the Agritechnica Innovation Awards, where they won five medals, including a gold medal for the Twin Rotor Combine Harvester Concept, demonstrate their pioneering spirit. With brands like New Holland Agriculture, Case IH, and STEYR, CNH Industrial offers cutting-edge solutions that enhance agricultural applications while driving customer success. They are committed to sustainability and an inclusive workplace, with over 40,000 employees united under the common goal of empowering customers to cultivate a brighter future.
New Partnership With ONE SMART SPRAY (2023/05/23)
CNH Industrial integrates ONE SMART SPRAY’s advanced spraying system to enhance its precision and automated spraying capabilities. The system uses multiple cameras for weed detection and selective spraying while providing farmers with real-time tracking of inputs and cost savings, in-depth weed maps, and automated reports accessible through mobile devices. With this integration, farmers can customize spraying operations, even in low-light conditions, and expand their operating windows to optimize productivity and maximize resources. This reinforces CNH Industrial’s position as a leader in agricultural technology, supporting farmers worldwide in achieving greater efficiency and sustainability.
CNH Industrial Reports Its Q1 2023 (2023/05/08)
CNH Industrial has released its Q1 2023 financial results, showing impressive growth compared to the same period in 2022. Consolidated revenues reached $5,342 million, marking a 15% increase. The company reported a net income of $486 million and an adjusted net income of $475 million. Diluted earnings per share (EPS) and adjusted diluted EPS were reported at $0.35, demonstrating significant improvement. Despite a net cash usage of $701 million in operating activities and an industrial free cash flow absorption of $673 million, CNH Industrial saw a boost in net sales for Industrial Activities, reaching $4,776 million. This success is attributed to solid demand in North American row crops, continued pricing strength, and a robust order backlog. As a result, the company has updated its net sales guidance for FY 2023, projecting an 8-11% increase compared to 2022.
Ends Third Tranche of $300M Buyback Program (2023/04/27)
CNH Industrial N.V. has completed transactions as part of the Third Tranche of its $300 million common share buyback program. The company’s broker conducted the purchases between April 17 and April 21, 2023, following pre-established instructions and independent of CNH Industrial. These transactions carried out before the closed period and in compliance with regulations, amounted to an investment of approximately €45,354,455.83 ($49,125,093.69) and included the acquisition of 3,393,237 common shares. Completing the Third Tranche highlights CNH Industrial’s commitment to shareholder value and its broader corporate strategy of optimizing capital allocation and delivering returns to shareholders. In addition, the bought-back shares will reduce the share capital. They can be utilized for share-based incentive plans or other purposes determined by the Board of Directors.
CNH Industrial To Invest $23M In Its Coëx Plant (2023/04/07)
In its French production and R&D plant in Coëx (Vendée), CNH Industrial has announced that it would invest 21.4 million euros over the next two years. The investment will be concentrated on developing new products and increasing the site’s production capabilities. For over 70 years, the New Holland company in Coëx has led the way in mechanical grape harvesting technology. It creates and produces self-propelled grape and olive harvesters for export worldwide. The Coëx-produced equipment is certified as Origine France Garantie (French Origin Guaranteed). Coëx position as a worldwide Center of Excellence for specialty harvesting and exporting the finest of “Made in France” to the globe is anticipated to be further enhanced by the investment.
Image provided by CNH Industrial
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