CNH Industrial NV

Previous wording

In combination with the downturn in our industry cycle, lower commodity prices, changes in government policies, higher interest rates and repercussions from geopolitical events, the global economy continues to experience events affecting our suppliers, customers and business operations. As a consequence of the industry downturn, the Company expects production volumes to decline for the rest of 2024 due to lower demand. Given these conditions, we expect manufacturing inefficiencies and lower fixed cost absorption.

Current wording

In combination with the downturn in our industry cycle, lower commodity prices, changes in government policies, higher interest rates and repercussions from geopolitical events, the global economy continues to experience events affecting our suppliers, customers and business operations. As a consequence of the industry downturn, and the resulting increase in dealer inventories of our products, the Company expects production volumes to decline for the rest of 2024 due to lower demand. Given these conditions, we expect manufacturing inefficiencies and lower fixed cost absorption.

Previous wording

We recorded revenues of $5,488 million for the three months ended June 30, 2024, a decline of 16.4% (down 15.6% on a constant currency basis) compared to the three months ended June 30, 2023. Net sales were $4,803 million in the three months ended June 30, 2024, a decrease of 19.3% (down 18.6% on a constant currency basis) compared to the three months ended June 30, 2023. This decline was mainly due to lower shipment volumes on decreased industry demand and dealer inventory requirements. Price realization continued to be modestly favorable for Agriculture and essentially flat for Construction.

Current wording

We recorded revenues of $4,654 million for the three months ended September 30, 2024, a decline of 22.3% (down 20.9% on a constant currency basis) compared to the three months ended September 30, 2023. Net sales were $3,997 million in the three months ended September 30, 2024, a decrease of 25.0% (down 24.0% on a constant currency basis) compared to the three months ended September 30, 2023. This decline was primarily due to lower shipment volumes on decreased industry demand and reduced dealer inventory requirements.

Previous wording

Cost of goods sold was $3,702 million for the three months ended June 30, 2024 compared with $4,463 million for the three months ended June 30, 2023. As a percentage of net sales of Industrial Activities, cost of goods sold was 77.1% in the three months ended June 30, 2024 (75.0% for the three months ended June 30, 2023), which was impacted by lower production volumeand unfavorable mix, partially offset by favorable price realization along with improved purchasing and manufacturing costs.

Current wording

Cost of goods sold was $3,130 million for the three months ended September 30, 2024 compared with $4,059 million for the three months ended September 30, 2023. As a percentage of net sales of Industrial Activities, cost of goods sold was 78.3% in the three months ended September 30, 2024 (76.1% for the three months ended September 30, 2023), which was impacted by lower production volume and unfavorable mix, partially offset by improved purchasing and manufacturing costs.

Previous wording

Selling, general and administrative expenses were $461 million for the three months ended June 30, 2024 (8.4% of total revenues), down $24 million compared to the three months ended June 30, 2023 (7.4% of total revenues). Total expenses were lower primarily due to a decrease in labor costs, driven by the Company's restructuring program, partially offset by higher credit risk provisions in the Financial Services segment.

Current wording

Selling, general and administrative expenses were $426 million for the three months ended September 30, 2024 (9.2% of total revenues), down $36 million compared to the three months ended September 30, 2023 (7.7% of total revenues). Total expenses were lower primarily due to a decrease in labor costs, driven by the Company's restructuring program, partially offset by higher credit risk provisions in the Financial Services segment.

Previous wording

Restructuring expenses were $51 million and $2 million for the three months ended June 30, 2024 and 2023, respectively. The Company’s restructuring program announced in November 2023 targets both labor and non-labor SG&A expenses. The Company has incurred a total of $114 million from launch to June 30, 2024 under this program.

Current wording

Restructuring expenses were $12 million and $5 million for the three months ended September 30, 2024 and 2023, respectively. The Company’s restructuring program announced in November 2023 targets both labor and non-labor SG&A expenses. The Company has incurred a total of $124 million from launch to September 30, 2024 under this program which is substantially complete.

Previous wording

Interest expense was $418 million for the three months ended June 30, 2024 compared to $323 million for the three months ended June 30, 2023. The increase in interest expense is primarily due to both higher rates and outstanding debt in our Financial Services segment. The interest expense attributable to Industrial Activities for the three months ended June 30, 2024, net of interest income and eliminations, was $46 million, compared to $22 million in the three months ended June 30, 2023.

Current wording

Interest expense was $378 million for the three months ended September 30, 2024 compared to $346 million for the three months ended September 30, 2023. The interest expense attributable to Industrial Activities for the three months ended September 30, 2024, net of interest income and eliminations, was $36 million, compared to $10 million in the three months ended September 30, 2023.

Previous wording

Income tax expense for the three months ended June 30, 2024 was $95 million compared to $192 million for the three months ended June 30, 2023. The effective tax rate for the three months ended June 30, 2024 and 2023 was 20.9% and 22.9%, respectively. The effective tax rate for the three months ended June 30, 2024 was lower than the effective tax rate for the three months ended June 30, 2023 due to discrete items that reduced the rate in 2024, including the impact of highly-inflationary accounting and tax-related inflation adjustments in Argentina. The 2023 effective tax rate was reduced by the tax impact related to the sale of CNH Industrial Russia.

Current wording

Income tax expense for the three months ended September 30, 2024 was $75 million compared to $171 million for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2024 and 2023 was 20.8% and 25.8%, respectively. The reduction in the 2024 effective tax rate was due to the impact of the company's income mix, including the existence of credits and other permanent benefits, as well as by discrete items, including the impact of highly-inflationary accounting and tax-related inflation adjustments in Argentina and the one-time impact of a patent box tax deduction in the UK.

Previous wording

Net sales of Industrial Activities were $4,803 million during the three months ended June 30, 2024, a decrease of 19.3% compared to the three months ended June 30, 2023 (down 18.6% on a constant currency basis). This decline is mainly due to lower shipment volumes on decreased industry demand and dealer inventory requirements. Price realization continued to be modestly favorable for Agriculture and essentially flat for Construction.

Current wording

Net sales of Industrial Activities were $3,997 million during the three months ended September 30, 2024, a decrease of 25.0% compared to the three months ended September 30, 2023 (down 24.0% on a constant currency basis). This decline was primarily due to lower shipment volumes on decreased industry demand, reduced dealer inventory unit requirements across all regions and unfavorable net price realization due to enhanced retail actions.

Previous wording

Adjusted EBIT of Industrial Activities was $941 million during the six months ended June 30, 2024, compared to an adjusted EBIT of $1,377 million during the six months ended June 30, 2023. The decline was primarily due to lower volume in the Agricultural segment on lower industry demand, partially offset by improved purchasing and manufacturing costs, along with a continued reduction in SG&A expenses.

Current wording

Adjusted EBIT of Industrial Activities was $336 million during the three months ended September 30, 2024, compared to an adjusted EBIT of $627 million during the three months ended September 30, 2023. The decline was primarily due to lower industry volumes; partially offset by improved purchasing and manufacturing costs, and a continued reduction in SG&A expenses.

Previous wording

In North America, industry volume was down 11% year-over-year in the second quarter for tractors under 140 HP and was up 2% for tractors over 140 HP; combines were down 5%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 10% and down 36%, respectively. South America tractor demand was down 10% and combine demand was down 26%, continuing the recent negative trend. Asia Pacific tractor demand was up 1% and combine demand was up 4%.

Current wording

In North America, industry volume was down 18% year-over-year in the third quarter for tractors under 140 HP and was down 17% for tractors over 140 HP; combines were down 29%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 20% and 50%, respectively. South America tractor and combine demand was down 12% and 32%, respectively, continuing the negative trend of previous quarters. Asia Pacific tractor demand was up 1%, while combine demand was down 33%.

Previous wording

Adjusted EBIT was $536 million in the three months ended June 30, 2024, compared to $821 million in the three months ended June 30, 2023. The decrease was driven by the lower industry volumes, partially offset by improved purchasing and manufacturing costs, along with a continued reduction in SG&A expenses. R&D investments accounted for 5.5% of sales (4.9% in Q2 2023). Income from unconsolidated subsidiaries increased $15 million year-over-year. Adjusted EBIT margin was 13.7% (16.8% in Q2 2023).

Current wording

Adjusted EBIT was $336 million in the three months ended September 30, 2024, compared to $642 million in the three months ended September 30, 2023. The decrease was driven by the lower industry volumes; partially offset by improved purchasing and manufacturing costs, and a continued reduction in SG&A expenses. R&D investments accounted for 6.0% of sales (5.5% in the three months ended September 30, 2023). Adjusted EBIT margin was 10.2% (14.6% in the three months ended September 30, 2023).

Previous wording

Construction's net sales totaled $890 million in the three months ended June 30, 2024, a decline of 16.4% compared to the three months ended June 30, 2023 (down 15.7% on a constant currency basis), due to lower volumes across all regions driven mainly by lower market demand.

Current wording

Construction's net sales totaled $687 million in the three months ended September 30, 2024, a decline of 27.5% compared to the three months ended September 30, 2023 (down 26.0% on a constant currency basis), due to lower volumes driven mainly by a decrease in market demand across all regions.

Previous wording

Global industry volume for construction equipment decreased 5% year-over-year in the second quarter for Heavy construction equipment; Light construction equipment was down 4%. Aggregated demand decreased 15% in EMEA, was flat in North America, increased 30% in South America and decreased 6% in Asia Pacific.

Current wording

Global industry volume for construction equipment increased 1% year-over-year in the third quarter for Heavy construction equipment; Light construction equipment was down 9%. Aggregated demand decreased 16% in EMEA and 7% in North America, but increased 11% in South America and 3% in Asia Pacific.

Previous wording

Adjusted EBIT was $60 million in the three months ended June 30, 2024, compared to $72 million in the three months ended June 30, 2023 as a result oflower volumes, mostly offset by improved purchasing and manufacturing costs, along with lower SG&A expenses. Adjusted EBIT margin at 6.7% decreased by 10 bps year-over-year.

Current wording

Adjusted EBIT was $40 million in the three months ended September 30, 2024, compared to $60 million in the three months ended September 30, 2023 as a result oflower volumes and unfavorable net price realization; partially offset by improved product costs, better plant efficiencies and lower SG&A expenses. Adjusted EBIT margin was 5.8% (6.3% inthe three months ended September 30, 2023).

Previous wording

Revenues of Financial Services were $687 million in the three months ended June 30, 2024, up 13.9% compared to the three months ended June 30, 2023 (up 15.7% on a constant currency basis), due to favorable volumes in all regions except EMEA and higher yields, primarily in North America, partially offset by lower used equipment sales due to decreased operating lease maturities.

Current wording

Revenues of Financial Services were $659 million in the three months ended September 30, 2024, up 0.9% compared to the three months ended September 30, 2023 (up 4.6% on a constant currency basis), due to favorable volumes in all regions except EMEA and higher yields in North America; partially offset by decreased yields in South America due to product mix, and lower used equipment sales due to decreased operating lease maturities.

Previous wording

Net income of Financial Services was $91 million in the three months ended June 30, 2024, a decrease of $3 million compared to the three months ended June 30, 2023, primarily due to increased risk costs driven by higher delinquencies in South America; offsetting higher volumes and interest margin improvements globally.

Current wording

Net income of Financial Services was $78 million in the three months ended September 30, 2024, a decrease of $8 million compared to the three months ended September 30, 2023, primarily due to increased risk costs driven by higher delinquencies in South America, partially offset by higher volumes and interest margin improvements in most regions.

Previous wording

At June 30, 2024, the receivables balance greater than 30 days past due as a percentage of receivables was 2.5% (1.8% as of June 30, 2023), with most of the growth in South America from the seasonal concentration of yearly payments owed by agricultural customers compounded by regional economic and environmental factors..

Current wording

At September 30, 2024, the receivables balance greater than 30 days past due as a percentage of receivables was down sequentially to 2.2%, however was elevated from prior year (1.6% as of September 30, 2023) due to economic and environmental factors, specifically in South America.

Previous wording

We recorded revenues of $10,306 million for the six months ended June 30, 2024, a decline of 13.5% (down 13.2% on a constant currency basis) compared to the six months ended June 30, 2023. Net sales were $8,934 million in the six months ended June 30, 2024, a decline of 16.7% (down 16.5% on a constant currency basis) compared to the six months ended June 30, 2024. This decline was mainly due to lower shipment volumes on decreased industry demand and dealer inventory requirements. Price realization continued to be modestly favorable for Agriculture and essentially flat for Construction.

Current wording

We recorded revenues of $14,960 million for the nine months ended September 30, 2024, a decline of 16.4% (down 15.8% on a constant currency basis) compared to the nine months ended September 30, 2023. Net sales were $12,931 million in the nine months ended September 30, 2024, a decline of 19.5% (down 19.0% on a constant currency basis) compared to the nine months ended September 30, 2024. This decline was mainly due to lower shipment volumes on decreased industry demand and reduced dealer inventory unit requirements.

Previous wording

Cost of goods sold was $6,897 million for the six months ended June 30, 2024 compared with $8,074 million for the six months ended June 30, 2023. As a percentage of net sales of Industrial Activities, cost of goods sold was 77.2% in the six months ended June 30, 2024 (75.2% for the six months ended June 30, 2023), which was impacted by lower production volumesand unfavorable mix, partially offset by favorable price realization and production cost efficiencies.

Current wording

Cost of goods sold was $10,027 million for the nine months ended September 30, 2024 compared with $12,133 million for the nine months ended September 30, 2023. As a percentage of net sales of Industrial Activities, cost of goods sold was 77.5% in the nine months ended September 30, 2024 (75.5% for the nine months ended September 30, 2023), which was impacted by lower production volumesand unfavorable mix, partially offset by improved purchasing and manufacturing costs.

Previous wording

Selling, general and administrative expenses were $872 million for the six months ended June 30, 2024 (8.5% of total revenues), down $51 million compared to the six months ended June 30, 2023 (7.8% of total revenues). Total expenses were lower primarily due to a decrease in labor costs, driven by the Company's restructuring program, partially offset by higher credit risk provisions in the Financial Services segment.

Current wording

Selling, general and administrative expenses were $1,298 million for the nine months ended September 30, 2024 (8.7% of total revenues), down $87 million compared to the nine months ended September 30, 2023 (7.7% of total revenues). Total expenses were lower primarily due to a decrease in labor costs, driven by the Company's restructuring program, partially offset by higher credit risk provisions in the Financial Services segment.

Previous wording

Restructuring expenses were $82 million and $3 million for the six months ended June 30, 2024 and 2023, respectively. The Company’s restructuring program announced in November 2023 targets both labor and non-labor SG&A expenses. The Company has incurred a total of $114 million from launch to June 30, 2024 under this program.

Current wording

Restructuring expenses were $94 million and $8 million for the nine months ended September 30, 2024 and 2023, respectively. The Company’s restructuring program announced in November 2023 targets both labor and non-labor SG&A expenses. The Company has incurred a total of $124 million from launch to September 30, 2024 under this program which is substantially complete.

Previous wording

Interest expense was $812 million for the six months ended June 30, 2024 compared to $595 million for the six months ended June 30, 2023. The increase in interest expense is primarily due to both higher rates and outstanding debt in our Financial Services segment. The interest expense attributable to Industrial Activities for the three months ended June 30, 2024, net of interest income and eliminations, was $78 million, compared to $26 million in the six months ended June 30, 2023.

Current wording

Interest expense was $1,190 million for the nine months ended September 30, 2024 compared to $941 million for the nine months ended September 30, 2023. The interest expense attributable to Industrial Activities for the three months ended September 30, 2024, net of interest income and eliminations, was $114 million, compared to $36 million in the nine months ended September 30, 2023.

Previous wording

Other, net expenses were $322 million for the six months ended June 30, 2024 and included a loss on the sale of non-core product lines of $15 million, offset by a pre-tax gain of $12 million ($9 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification.

Current wording

Other, net expenses were $449 million for the nine months ended September 30, 2024 and included a loss on the sale of non-core product lines of $15 million, offset by a pre-tax gain of $18 million ($14 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $14 million for a fair value adjustment related to an investment in unconsolidated subsidiary.

Previous wording

Other, net expenses were $350 million for the six months ended June 30, 2023 and includes a loss of $23 million on the sale of CNH Industrial Russia and CNH Capital Russia, offset by a pre-tax gain of $12 million ($9 million after-tax) as a result of the amortization over 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $13 million in relation to the fair value remeasurement of previously held investments in Augmenta and Bennamann.

Current wording

Other, net expenses were $536 million for the nine months ended September 30, 2023 and includes a loss of $23 million on the sale of CNH Industrial Russia and CNH Capital Russia, offset by a pre-tax gain of $18 million ($14 million after-tax) as a result of the amortization over 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $13 million in relation to the fair value remeasurement of previously held investments in Augmenta and Bennamann.

Previous wording

Income tax expense for the six months ended June 30, 2024 was $172 million compared to $365 million for the six months ended June 30, 2023. The effective tax rate for the six months ended June 30, 2024 and 2023 was 20.1% and 24.9%, respectively. The effective tax rate for the six months ended June 30, 2024 was lower than the effective rate for the six months ended June 30, 2023 due to discrete items that reduced the rate in 2024, including the impact of highly-inflationary accounting and tax-related inflation adjustments in Argentina. The 2023 effective tax rate was reduced by the impact related to the sale of CNH Industrial Russia, although this tax reduction was partially offset by discrete tax expenses associated with prior periods.

Current wording

Income tax expense for the nine months ended September 30, 2024 was $247 million compared to $536 million for the nine months ended September 30, 2023. The effective tax rate for the nine months ended September 30, 2024 and 2023 was 20.3% and 25.2%, respectively. The reduction in the effective tax rate for the nine months ended September 30, 2024 was due to discrete items that reduced the rate in 2024, including the impact of highly-inflationary accounting and tax-related inflation adjustments in Argentina. The 2023 effective tax rate was reduced by the impact related to the sale of CNH Industrial Russia, although this tax reduction was partially offset by discrete tax expenses associated with prior periods.

Previous wording

Net income was $438 million for the three months ended June 30, 2024, compared to net income of $710 million for the three months ended June 30, 2023. Net income for the three months ended June 30, 2024 included a loss of$15 million on the sale of certain non-core product lines and restructuring expense of $51 million, partially offset by a pre-tax gain of $6 million ($5 million after-tax) as a result of the amortization over 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification.

Current wording

Net income was $1,083 million for the nine months ended September 30, 2024, compared to net income of $1,704 million for the nine months ended September 30, 2023. Net income for the nine months ended September 30, 2024 included restructuring expenses of $94 million and a loss of$15 million on the sale of certain non-core product lines, partially offset by a pre-tax gain of $18 million ($14 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $14 million for a fair value adjustment related to an investment in unconsolidated subsidiary.

Previous wording

Net income was $1,196 million for the six months ended June 30, 2023. Net income for the six months ended June 30, 2023 included a loss of $17 million related to the sale of CNH Industrial Russia, a loss of $6 million related to CNH Capital Russia, and restructuring expenses of $3 million, partially offset by a pre-tax gain of $12 million ($9 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $13 million in relation to the fair value remeasurement of previously held investments in Augmenta and Bennamann.

Current wording

Net income for the nine months ended September 30, 2023 included a loss of $17 million related to the sale of CNH Industrial Russia, a loss of $6 million related to CNH Capital Russia, and restructuring expenses of $8 million, offset by a pre-tax gain of $18 million ($14 million after-tax) as a result of the amortization over four years of the $101 million positive impact from the 2021 U.S. healthcare plan modification and a gain of $13 million in relation to the fair value remeasurement of previously held investments in Augmenta and Bennamann.

Previous wording

Net sales of Industrial Activities were $8,934 million during the six months ended June 30, 2024, a decline of 16.7% compared to the six months ended June 30, 2023 (down 16.5% on a constant currency basis). This decline is mainly due to lower shipment volumes on decreased industry demand and dealer inventory requirements. Price realization continued to be favorable for Agriculture and essentially flat for Construction.

Current wording

Net sales of Industrial Activities were $12,931 million during the nine months ended September 30, 2024, a decline of 19.5% compared to the nine months ended September 30, 2023 (down 19.0% on a constant currency basis). This decline is mainly due to lower shipment volumes on decreased industry demand and dealer inventory unit requirements.

Previous wording

Adjusted EBIT of Industrial Activities was $536 million during the three months ended June 30, 2024, compared to an adjusted EBIT of $822 million during the three months ended June 30, 2023. The decline was primarily due to lower volume in the Agricultural segment on lower industry demand, partially offset by improved purchasing and manufacturing costs, along with a continued reduction in SG&A expenses.

Current wording

Adjusted EBIT of Industrial Activities was $1,210 million during the nine months ended September 30, 2024, compared to an adjusted EBIT of $1,972 million during the nine months ended September 30, 2023. The decline was primarily due to lower volume on decreased industry demand and unfavorable mix in the Agricultural segment; partially offset by improved purchasing and manufacturing costs, along with a continued reduction in SG&A expenses.

Previous wording

The following table shows Agriculture net sales by geographic region for the six months ended June 30, 2024 compared to the six months ended June 30, 2023:

Current wording

The following table shows Agriculture net sales by geographic region for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023:

Previous wording

Agriculture's net sales totaled $3,913 million in the three months ended June 30, 2024, a decrease of 20.0% compared to the three months ended June 30, 2023 (down 19.2% on a constant currency basis) primarily due to lower shipment volumes on decreased industry demand and dealer inventory requirements across all regions, partially offset by favorable price realization.

Current wording

Agriculture's net sales totaled $10,596 million in the nine months ended September 30, 2024, a decline of 19.7% compared to the nine months ended September 30, 2023 (down 19.3% on a constant currency basis) primarily due to lower shipment volumes on decreased industry demand and dealer inventory unit requirements across all regions.

Previous wording

For the six months ended June 30, 2024 in North America, industry volume was down 13% year-over-year for tractors under 140 HP and nil for tractors over 140 HP; combines were down 11%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 10% and down 31%, respectively. South America tractor demand was down 14% and combine demand was down 35% continuing the negative trend of the second half of 2023. Asia Pacific tractor demand was down 5% while combine demand was up 12% in the region as a whole.

Current wording

For the nine months ended September 30, 2024 in North America, industry volume was down 14% year-over-year for tractors under 140 HP and down 6% for tractors over 140 HP; combines were down 19%. In Europe, Middle East and Africa (EMEA), tractor and combine demand was down 14% and down 42%, respectively. South America tractor demand was down 12% and combine demand was down 34% continuing the negative trend of the second half of 2023. Asia Pacific tractor demand was down 4% while combine demand was up 12% in the region as a whole.

Previous wording

Adjusted EBIT was $957 million in the six months ended June 30, 2024, compared to $1,391 million in the six months ended June 30, 2023. The decrease was driven by lower volumes, partially offset by improved purchasing and manufacturing costs, along with a continued reduction in SG&A expenses. R&D investments accounted for 5.7% of sales (5.1% in the six months ended June 30, 2023). Income from unconsolidated subsidiaries increased $57 million year-over-year. Adjusted EBIT margin was 13.1%.

Current wording

Adjusted EBIT was $1,226 million in the nine months ended September 30, 2024, compared to $2,001 million in the nine months ended September 30, 2023. The decrease was driven by lower volumes and unfavorable mix, partially offset by improved purchasing and manufacturing costs, along with a continued reduction in SG&A expenses. R&D investments accounted for 5.8% of sales (5.2% in the nine months ended September 30, 2023). Adjusted EBIT margin was 11.6%.

Previous wording

The following table shows Construction net sales by geographic region for the six months ended June 30, 2024 compared to the six months ended June 30, 2023:

Current wording

The following table shows Construction net sales by geographic region for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023:

Previous wording

Construction's net sales totaled $1,648 million in the six months ended June 30, 2024, a decline of 13.9% compared to the six months ended June 30, 2023 (down 13.7% on a constant currency basis), due to lower volume across all regions driven mainly by lower market demand.

Current wording

Construction's net sales totaled $2,335 million in the nine months ended September 30, 2024, a decline of 18.4% compared to the nine months ended September 30, 2023 (down 17.8% on a constant currency basis), due to lower volume across all regions driven mainly by lower market demand.

Previous wording

In the six months ended June 30, 2024 global industry volume for construction equipment decreased 3% year-over-year for Heavy construction equipment; Light construction equipment was down 6%. Aggregated demand decreased 15% in EMEA, decreased 2% in North America, increased 19% in South America and decreased 2% in Asia Pacific.

Current wording

In the nine months ended September 30, 2024 global industry volume for construction equipment decreased 1% year-over-year for Heavy construction equipment; Light construction equipment was down 7%. Aggregated demand decreased 14% in EMEA and decreased 6% in North America, but increased 12% in South America and increased 1% in Asia Pacific.

Previous wording

Adjusted EBIT was $111 million in the six months ended June 30, 2024, compared to $116 million in the six months ended June 30, 2023 as a result oflower volumes, mostly offset by improved purchasing and manufacturing costs, along with lower SG&A expenses. Adjusted EBIT margin was 6.7%.

Current wording

Adjusted EBIT was $151 million in the nine months ended September 30, 2024, compared to $176 million in the nine months ended September 30, 2023 as a result oflower volumes, mostly offset by improved purchasing and manufacturing costs, along with lower SG&A expenses. Adjusted EBIT margin was 6.5%.

Previous wording

Revenues of Financial Services were $1,372 million in the six months ended June 30, 2024, up 19.1% compared to the six months ended June 30, 2023 (up 19.4% on a constant currency basis), due to favorable volumes in all regions and higher yields, primarily in North America, partially offset by lower used equipment sales due to decreased operating lease maturities.

Current wording

Revenues of Financial Services were $2,031 million in the nine months ended September 30, 2024, up 12.5% compared to the nine months ended September 30, 2023 (up 14.1% on a constant currency basis), due to favorable volumes in all regions except EMEA and higher yields in all regions, except South America, partially offset by lower used equipment sales due to decreased operating lease maturities.

Previous wording

Net income of Financial Services was $209 million in the six months ended June 30, 2024, an increase of $37 million compared to the six months ended June 30, 2023, primarily due to favorable volumes in all regions, margin improvement in all regions except Asia Pacific, and a favorable effective tax rate due to discrete items in the current year; partially offset by increased risk costs due to higher aged delinquencies in South America, increased specific reserve needs in North America and lower used equipment sales from less operating lease maturities.

Current wording

Net income of Financial Services was $287 million in the nine months ended September 30, 2024, an increase of $29 million compared to the nine months ended September 30, 2023, primarily due to favorable volumes in all regions except EMEA, margin improvement in all regions except Asia Pacific, and a favorable effective tax rate due to Argentina inflation adjustment in the current year; partially offset by increased risk costs due to higher aged delinquencies in South America, increased specific reserve needs in North America and lower used equipment sales from less operating lease maturities.

Previous wording

In the six months ended June 30, 2024, retail loan originations, including unconsolidated joint ventures, were $5.4 billion, up $0.4 billion compared to the six months ended June 30, 2023 (up $0.4 billion on a constant currency basis). The managed portfolio, including unconsolidated joint ventures, was $28.5 billion as of June 30, 2024 (of which retail was 65% and wholesale 35%), up $2.5 billion compared to June 30, 2023 (up $3.3 billion on a constant currency basis).

Current wording

In the nine months ended September 30, 2024, retail loan originations, including unconsolidated joint ventures, were $8.2 billion, up $0.1 billion compared to 2023 (up $0.2 billion on a constant currency basis). The managed portfolio, including unconsolidated joint ventures, was $29.0 billion as of September 30, 2024 (of which retail was 67% and wholesale 33%), up $2.2 billion compared to September 30, 2023 (up $2.2 billion on a constant currency basis).