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CNH INDUSTRIAL 2021 THIRD QUARTER RESULTS 2021 THIRD QUARTER RESULTS CNH Industrial reports solid third quarter performance . Consolidated revenues of $ 8.0 billion ( up 23 % compared to Q3 2020 ) , net income of $ 329 million , adjusted diluted EPS of $ 0.36 , and adjusted EBIT of Industrial Activities of $ 469 million ( up $ 231 million or some 100 % ) . Free cash flow of Industrial Activities negative $ 0.7 billion . Financial results presented under U.S. GAAP " Our CNH Industrial team performed admirably in Q3 , displaying exceptional agility and determination in overcoming the increasingly challenging supply chain situation to deliver for our customers and dealers . Their feats were doubly impressive as , over the same period , we were devoting considerable resources towards the closing of the Raven Industries acquisition and developing a comprehensive , value enhancing integration plan , while also finalizing our preparations to complete the spin . For the latter , we now have both On- and Off - Highway leadership organizations completed and in place and remain on track for an early Q1 2022 separation . Our solid Q3 results are a credit to all our employees and dealers , who continue to work tirelessly to mitigate significant external pressures . Further testament both to the team's inspired execution and to the strength of our markets , particularly Agriculture , is our year - to - date adjusted EPS of $ 1.10 , which exceeds any full year EPS in the Company's history . Despite acute supplier issues that will constrain our Q4 results , considering the ongoing health of our markets , the untapped potential of our team we are unlocking through our reorganization , and the onset of our various value creation initiatives which are only beginning to have an impact , we are confident in a bright future . " Net income US GAAP Consolidated revenues of which Net sales Industrial Activities 2021 Third Quarter Results ( all amounts $ million , unless otherwise stated comparison vs Q3 2020 ) 7,972 + 23 % 7,537 329 0.24 + 23 % 521 Diluted EPS $ Cash flow from operating activities Cash and cash equivalents 7,149 -671 ( ** ) ( * ) c.c. means at constant currency ( ** ) comparison vs June 30 , 2021 +1,261 +0.94 -1,707 + 22 % C.C . ( * ) + 23 % C.C. Net sales of Industrial Activities of $ 7,537 million , up 23 % , with increases in all segments due to continued strong industry demand and price realization . Adjusted EBIT of Industrial Activities of $ 469 million ( $ 238 million in Q3 2020 ) , with Agriculture adjusted EBIT of $ 415 million continuing the strong performance of the segment . Adjusted EBIT increased by $ 58 million and $ 45 million for Commercial and Specialty Vehicles and Construction , respectively . Powertrain adjusted EBIT of $ 44 million ( $ 60 million in Q3 2020 ) . Adjusted net income of $ 496 million , with adjusted diluted earnings per share of $ 0.36 ( adjusted net income of $ 156 million in Q3 2020 , with adjusted diluted earnings per share of $ 0.11 ) . In the first nine months of 2021 , adjusted diluted earnings per share was $ 1.10 , surpassing all past full year performances . Reported income tax expense of $ 79 million , with adjusted effective tax rate ( adjusted ETR ( 1 ) ) of 13 % and 22 % for the three and nine months , respectively . Both ETRS reflect favorable changes to the Company's expected geographic mix of pre - tax earnings and net discrete tax benefits . Free cash flow of Industrial Activities was negative $ 0.7 billion due to seasonal working capital absorption , exacerbated by supply chain disruptions in the latter part of the quarter . Total Debt of $ 23.7 billion at September 30 , 2021 ( $ 26.1 billion at December 31 , 2020 ) . Industrial Activities net cash ( 1 ) position at $ 0.7 billion , a decrease of $ 0.7 billion from June 30 , 2021 . Available liquidity at $ 13.5 billion as of September 30 , 2021. In September 2021 , CNH Industrial Capital Canada Ltd. issued CAD $ 300 million in aggregate principal amount of 1.50 % notes due October 1 , 2024 . 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 ( 1¹ ) ● 469 ● 6.2 % ● 496 0.36 ( 728 ) 13,476 +231 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 +230 bps +340 CNH Industrial saw strong performance in the third quarter of 2021 as a result of higher volumes and favorable price realization , supported by continued strong demand across our industrial end markets , but with supply chain difficulties continuing to affect raw material cost , component availability and sales through the end of the quarter . +0.25 Global supply chain still showing increasing input costs and logistics pressures , with ongoing disruptions to the procurement environment forcing repeated reviews of production schedules . Critical conditions affecting the supply chain are expected to remain through the last quarter of the year . The Company cannot ensure that additional temporary closures of its manufacturing facilities will not occur due to ongoing component availability issues . -1,715 Order book in Agriculture more than doubled year over year for tractors worldwide with strong dealer order collection in all regions . Combines worldwide more than doubled , with strongest growth in North America and Europe . -947 ( ** ) 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 , where it more than tripled . Truck order intake in Europe up 68 % year over year , with light duty trucks up 61 % , and medium & heavy duty trucks up 89 % . Truck book - to - bill in Europe at 1.87 . 2021 Outlook The Company expects solid demand to continue across regions and segments . In the latter part of the year , increased impact of raw material and ongoing freight and logistics constraints will only be partially offset by positive price realization . The Company is updating the 2021 outlook for its Industrial Activities as follows : Net sales ( *** ) at the lower end of previous guidance ( 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 at around $ 1.0 billion R & D expenses and capital expenditures at around $ 2.0 billion .