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CNH INDUSTRIAL 2021 SECOND QUARTER RESULTS 2021 SECOND QUARTER RESULTS CNH Industrial reports strong second quarter performance . Consolidated revenues of $ 8.9 billion ( up 60 % compared to Q2 2020 ) , net income of $ 699 million , adjusted diluted EPS of $ 0.42 , and adjusted EBIT of Industrial Activities of $ 699 million ( up $ 757 million ) . $ 1.0 billion free cash flow of Industrial Activities . Financial results presented under U.S. GAAP " I am extremely proud of the outstanding execution of our CNH Industrial team in the second quarter , especially for their commitment to delivering for our customers and dealers around the world . Despite ongoing supply chain challenges and inflationary pressures , the continued strength of our end markets in conjunction with aggressive pricing activity , margin expansion initiatives , and solid teamwork propelled us to record second quarter earnings . Our industry is clearly in a cyclical upturn and the sound fundamental performance of our businesses and operations is enabling us to capture much of the benefit . This robust environment contributed to growth across AG , CE , and C & SV order books , which also reflected the excellent Q2 performance of each of these businesses . With the acquisition of Raven Industries , the largest in our company's history , we are adding significantly to our precision agriculture capabilities and establishing the foundation for building this into a sustainable competitive advantage . We also began the first phase of our organization redesign , directed both at eliminating bureaucratic obstacles to customer centricity and to positioning each business in preparation for the spin . Both SpinCo and RemainCo remain laser focused on delivering for our customers throughout these activities , and with market demand and customer sentiment rising , our production facilities moving mountains to satisfy customer needs , and a comprehensive plan being nimbly executed by our dedicated team , CNH Industrial is poised for a noteworthy second half and an even brighter future . " US GAAP Consolidated revenues of which Net sales of Industrial Activities Net income 2021 Second Quarter Results ( all amounts $ million , unless otherwise stated - comparison vs Q2 2020 ) 8,911 8,490 699 0.51 + 60 % 999 + 65 % +338 Diluted EPS $ Cash flow from operating activities Cash and cash equivalents 7,820 +761 ( ** ) ( * ) c.c. means at constant currency ( ** ) comparison vs March 31 , 2021 Net sales of Industrial Activities of $ 8,490 million , up 65 % , with solid performance from all segments , as a result of higher volumes driven by strong industry demand and price realization . +0.25 + 51 % C.C. ) -68 + 55 % C.C. Adjusted EBIT of Industrial Activities of $ 699 million ( loss of $ 58 million in Q2 2020 ) , with all segments up year over year . Agriculture adjusted EBIT margin at 14.7 % . Adjusted EBIT of $ 100 million for Commercial and Specialty Vehicles , $ 74 million for Powertrain and $ 24 million for Construction . Adjusted net income of $ 583 million , with adjusted diluted earnings per share of $ 0.42 ( adjusted net loss of $ 85 million in Q2 2020 , with adjusted diluted loss per share of $ 0.07 ) . Reported income tax expense of $ 188 million , with adjusted effective tax rate ( adjusted ETR ( ¹ ) ) of 25 % . Free cash flow of Industrial Activities was positive $ 1.0 billion due to the strong operating performance . Total Debt of $ 24.5 billion at June 30 , 2021 ( $ 26.1 billion at December 31 , 2020 ) . Industrial Activities net cash ( 1 ) position at $ 1.4 billion , an increase of $ 0.8 billion from March 31 , 2021 . Available liquidity at $ 14.4 billion as of June 30 , 2021. In May 2021 , CNH Industrial paid € 150 million ( - $ 180 million ) in dividends to shareholders . In the same month , CNH Industrial Capital LLC issued $ 600 million in aggregate principal amount of 1.450 % notes due 2026 . Adjusted net income Adjusted diluted EPS $ Adjusted EBIT of Industrial Activities Adjusted EBIT Margin of Industrial Activities Available liquidity Free cash flow of Industrial Activities PRESS RELEASE Scott Wine , Chief Executive Officer NON GAAP ( 1 ) ● 699 ● 8.2 % ● 583 0.42 1,008 Refer to section " Notes " at page 4 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations ( *** ) Net sales reflecting the exchange rate of 1.20 EUR / USD 14,423 + 1,305 % +930 bps +668 Continued recovery across our industrial end markets supported our strong performance in the second quarter . Higher commodity prices stimulated demand for agriculture equipment while supply chain difficulties affected raw material and component costs and availability . +0.49 Global supply chain remains unstable and will require continued diligent coordination to work through increasing input costs and logistics pressures which are expected to extend through the second half of the year . +911 Order book in Agriculture more than doubled year over year for tractors with strong dealer order collection in all regions , particularly in North America , and more than tripled for combines , with strongest growth in North America and South America . +537 ( ** ) Construction order book was up year over year in both Heavy and Light sub - segments , with increases in all regions and particularly in North America and Europe . Truck order intake in Europe up 150 % year over year , with light duty trucks up 141 % , and medium & heavy - duty trucks up 172 % . Truck book - to - bill in Europe at 1.22 . 2021 Outlook The Company expects solid demand to continue across regions and segments . In the second half of the year , increased impact of raw material and continued freight and logistics costs will be partially offset by positive price realization . The Company is updating the 2021 outlook for its Industrial Activities as follows : Net sales ( *** ) up between 24 % and 28 % year on year including currency translation effects SG & A expenses lower / equal to 7.5 % of net sales Free cash flow positive in excess of $ 1.0 billion R & D expenses and capital expenditures up slightly from previous $ 2.0 billion .