CNH Industrial NV (CNHI) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 3, 2022 9:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and afternoon, ladies and gentlemen, and welcome to today's CNH Industrial 2022 First Quarter Results Conference Call and Webcast. [Operator Instructions]. At this time, I would like to turn the call over to Noah Weiss, Head of Investor Relations. Please go ahead, sir.

Noah Weiss

Thank you, Nadia. Good morning and good afternoon to everyone. We would like to welcome you to the webcast and conference call for CNH Industrial's first quarter results for the period ending March 31, 2022. 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 webcast without the express written consent of CNH Industrial is strictly prohibited.

Hosting today's call are CNH Industrial CEO, Scott Wine; and CFO, Oddone Incisa. They will use the material available for download from the CNH Industrial website.

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 EU 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 reconciliations to the most directly comparable U.S. GAAP financial measures is included in the presentation material.

I will now turn the call over to Scott.

Scott Wine

Thank you, Noah, and welcome to everyone joining our call. In our first quarter as a pure-play agriculture and construction business, we delivered strong sales growth of 13% year-over-year. This demonstrated the tremendous execution of our team who successfully navigated significant supply chain challenges, raw material cost inflation and a volatile geopolitical environment. I'm incredibly proud of what they've accomplished and for their deep commitment to making CNH Industrial better every day for our customers.

We are spending more than normal on expedited freight, and we continue to adjust production schedules to accommodate for part shortages. Unfinished machines in our factories and in-transit inventory between our overseas locations were notably above plan at end of quarter. April production improved, and we are confident that we will be able to deliver more for our customers in the second quarter.