Ingredion Incorporated Reports Strong Third Quarter Results and Raises Full-Year Outlook

  • Third quarter 2023 reported and adjusted operating income* grew 17% and 15%, respectively, compared to PY
  • Third quarter 2023 reported and adjusted EPS* were $2.36 and $2.33, an increase of 48% and 35%, respectively
  • The Company raises its full year adjusted EPS outlook to $9.05-$9.45, up from $8.80-$9.40

WESTCHESTER, Ill., Nov. 07, 2023 (GLOBE NEWSWIRE) — Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported results for the third quarter of 2023. The results, reported in accordance with U.S. generally accepted accounting principles (“GAAP”) for the third quarter of 2023 and 2022, include items that are excluded from the non-GAAP financial measures that the Company presents.

“We continued to successfully manage our business in the third quarter with our approach to product pricing and customer mix, while also driving operational excellence and productivity to mitigate the impact of cost inflation. This enabled us to deliver 15% adjusted operating income growth for the quarter,” said Jim Zallie, Ingredion’s president and chief executive officer.

“Our business continues to demonstrate resilience, evidenced by the diversity of our markets and product portfolio, and the strength of our business model. For example, our Food Systems business in Europe demonstrated mid-single-digit volume growth from greater penetration into private label. While lower corn costs around the globe contributed to lower net sales growth, we were encouraged by sequential quarterly improvement in sales volumes despite inventory rebalancing by customers that continued to work its way through the supply chain.”

“Our updated full-year guidance reflects our confidence to deliver revenue and profit growth above our four-year growth outlook. We continue to execute against our Driving Growth Roadmap creating long-term value for shareholders, and are committed to total shareholder return as evidenced by the increase in the dividend rate and shares repurchased during the quarter,” Zallie concluded.

*Adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income and adjusted effective income tax rate are non-GAAP financial measures. See section II of the Supplemental Financial Information entitled “Non-GAAP Information” following the Condensed Consolidated Financial Statements included in this news release for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.

Diluted Earnings Per Share (EPS)

3Q22 3Q23
Reported EPS $1.59 $2.36
Restructuring/Impairment costs 0.10
Tax items and other matters 0.14 (0.13)
Adjusted EPS** $1.73 $2.33


Estimated factors affecting changes in Reported and Adjusted EPS

3Q23
Total items affecting EPS** 0.60
Total operating items 0.29
Margin 0.66
Volume (0.36)
Foreign exchange 0.02
Other income (0.03)
Total non-operating items 0.31
Other non-operating income (0.04)
Financing costs (0.01)
Tax Rate 0.36
Shares outstanding (0.01)
Non-controlling interests 0.01

**Totals may not foot due to rounding;

Financial Highlights

  • At September 30, 2023, total debt and cash, including short-term investments, were $2.4 billion and $341 million, respectively, versus $2.5 billion and $239 million, respectively, at December 31, 2022.
  • Reported net financing costs for the third quarter were $26 million versus $24 million for the year-ago period.
  • Reported and adjusted effective tax rates for the quarter were 13.5% and 17.3%, respectively, compared to 32.3% and 30.6%, respectively, in the year-ago period. The decrease in the reported effective tax rate was primarily driven by a recently issued IRS Notice 2023-55 allowing the Company to claim certain foreign tax credits against U.S. taxes, favorable country earnings mix primarily due to Brazil tax law developments, and a related increase in the Company’s foreign-derived intangible income deduction.
  • Capital expenditures, net were $231 million, up $35 million from the year-ago period.

Business Review

Total Ingredion
Net Sales

$ in millions 2022 FX Impact Volume Price/mix 2023 Change Change
excl. FX
Third Quarter 2,023 10 (159) 159 2,033 1% 0%
Year-to-Date 5,959 (100) (500) 880 6,239 5% 6%


Reported Operating Income

$ in millions 2022 FX Impact Business Drivers Acquisition /
Integration
Restructuring / Impairment Other 2023 Change Change
excl. FX
Third Quarter 182 1 27 (10) 13 213 17% 16%
Year-to-Date 605 (18) 165 1 (6) 8 755 25% 28%


Adjusted Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 191 1 27 219 15% 14%
Year-to-Date 619 (18) 165 766 24% 27%


Net Sales

  • Third quarter and year-to-date net sales were up from the year-ago period 1% and 5%, respectively. The increases were driven by both price mix and foreign exchange impacts, partially offset by volume declines. Excluding foreign exchange impacts, net sales were flat and up 6%, respectively, for the quarter and year-to-date.

Operating Income

  • Third quarter reported and adjusted operating income were $213 million and $219 million, an increase of 17% and 15%, respectively, versus the prior year. The increases were driven by favorable price mix, partially offset by higher input costs and lower volume. Excluding foreign exchange impacts, reported and adjusted operating income were up 16% and 14%, respectively, from the same periods last year.
  • Year-to-date reported and adjusted operating income were $755 million and $766 million, an increase of 25% and 24%, respectively, versus the year-ago period. The increases in reported and adjusted operating income were attributable to favorable price mix, partially offset by higher raw material and input costs and lower volume. Excluding foreign exchange impacts, reported and adjusted operating income were up 28% and 27%, respectively, from the same periods last year.

North America
Net Sales

$ in millions 2022 FX Impact Volume Price
Mix
2023 Change Change
excl. FX
Third Quarter 1,262 (3) (110) 151 1,300 3% 3%
Year-to-Date 3,720 (18) (316) 612 3,998 7% 8%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 126 0 45 171 36% 36%
Year-to-Date 443 (3) 135 575 30% 30%
  • Third quarter operating income for North America was $171 million, an increase of $45 million from the year-ago period, and year-to-date operating income was $575 million, an increase of $132 million from the year-ago period. The increases for both periods were driven by favorable price mix, partially offset by higher input costs and lower volume.

South America
Net Sales

$ in millions 2022 FX Impact Volume Price
mix
2023 Change Change
excl. FX
Third Quarter 293 21 (14) (31) 269 -8% -15%
Year-to-Date 835 (2) (63) 25 795 -5% -5%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 48 3 (19) 32 -33% -40%
Year-to-Date 125 (2) (27) 96 -23% -22%
  • Third quarter operating income for South America was $32 million, a decrease of $16 million from the year-ago period, and year-to-date operating income was $96 million, a decrease of $29 million from the year-ago period. The decrease in both periods was driven primarily by lower volume and higher energy costs. Excluding foreign exchange impacts, segment operating income was down -40% and -22%, respectively, for the third quarter and year-to-date.

Asia-Pacific
Net Sales

$ in millions 2022 FX Impact Volume Price
mix
2023 Change Change
excl. FX
Third Quarter 278 0 (11) 5 272 -2% -2%
Year-to-Date 825 (21) (65) 77 816 -1% 1%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 27 0 6 33 22% 22%
Year-to-Date 70 (2) 20 88 26% 29%
  • Third quarter operating income for Asia-Pacific was $33 million, up $6 million from the year-ago period, and year-to-date operating income was $88 million, an increase of $18 million from the year-ago period. The change in both periods was driven by favorable price mix, partially offset by higher input costs and lower volumes. Excluding foreign exchange impacts, segment operating income was up 22% and 29%, respectively, for the third quarter and year-to-date.

Europe, Middle East, and Africa (EMEA)
Net Sales

$ in millions 2022 FX Impact Volume Price
mix
2023 Change Change
excl. FX
Third Quarter 190 (8) (24) 34 192 1% 5%
Year-to-Date 579 (59) (56) 166 630 9% 19%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 30 (2) 4 32 7% 13%
Year-to-Date 90 (11) 52 131 46% 58%
  • Third quarter operating income for EMEA was $32 million, up $2 million from the year-ago period, and year-to-date operating income was $131 million, an increase of $41 million from the year-ago period. The changes were driven by favorable price mix, partially offset by lower volume, higher raw material costs and foreign exchange impacts. Excluding foreign exchange impacts, segment operating income was up 13% and 58%, respectively, for the third quarter and year-to-date.

Dividends and Share Repurchases
In the first nine months of 2023, the Company paid $143 million in dividends to shareholders. The Company declared a quarterly dividend of $0.78 per share that was paid on October 24, 2023, which represented a 10% increase from the prior quarterly dividend rate, for the ninth consecutive annual increase. During the quarter, the Company repurchased $101 million of outstanding shares of common stock. To support total shareholder return as an important element of its capital allocation strategy, the Company is dedicated to returning value to shareholders through cash dividends and share repurchases.

Updated 2023 Full-Year Outlook
The Company expects its outlook for full-year 2023 reported and adjusted EPS to be in the range of $9.25 to $9.65 and $9.05 to $9.45, respectively. This expectation excludes acquisition-related integration and restructuring costs, as well as any potential impairment costs.

The Company now expects full-year 2023 net sales to be up mid-single-digits reflecting softer volume demand. Reported and adjusted operating income are both expected to be up high double-digits.

Compared to last year, the 2023 full-year outlook now assumes the following: North America operating income is expected to be up 20% to 25%, with price mix continuing to outpace lower volume and cost increases; South America operating income is expected to be down mid to high-teens, with higher input costs more than offsetting favorable price mix; Asia-Pacific operating income is expected to be up high double-digits, driven by favorable price mix and PureCircle growth, partially offset by higher input costs; and EMEA operating income is expected to be up 40% to 45% driven by favorable price mix. Corporate costs are expected to be up high single-digits.

For full-year 2023, the Company expects a reported and adjusted effective tax rate of 22.5% to 23.5% and 25.0% to 26.0%, respectively.

Cash from operations for full-year 2023 is now expected to be in the range of $650 million to $750 million. Capital expenditures for the full year are expected to be approximately $310 million.

Conference Call and Webcast Details
Ingredion will host a conference call on Tuesday, November 7, 2023, at 8 a.m. CT/9 a.m. ET, hosted by Jim Zallie, president and chief executive officer, and Jim Gray, executive vice president and chief financial officer. The call will be webcast in real-time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be accessible through the Company’s website and available to download a few hours prior to the start of the call. A replay will be available for a limited time at https://ir.ingredionincorporated.com/financial-information/quarterly-results.

About the Company

Ingredion Incorporated (NYSE: INGR) headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2022 annual net sales of nearly $8 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion’s Idea Labs® innovation centers around the world and approximately 12,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news.

Forward-Looking Statements

This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements.

Forward-looking statements include, among others, any statements regarding the Company’s expectations for full-year 2023 reported and adjusted EPS, net sales, reported and adjusted operating income, segment operating income, corporate costs, reported and adjusted effective tax rate, cash from operations, capital expenditures, and any other statements regarding the Company’s prospects and its future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations or beliefs underlying any of the foregoing.

These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “propels,” “opportunities,” “potential,” “provisional,” or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are “forward-looking statements.”

These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct.

Actual results and developments may differ materially from the expectations expressed in or implied by these statements, based on various risks and uncertainties, including effects of the conflict between Russia and Ukraine, including the impacts on the availability and prices of raw materials and energy supplies and volatility in foreign exchange and interest rates; changing consumption preferences relating to high fructose corn syrup and other products we make; the effects of global economic conditions and the general political, economic, business, and market conditions that affect customers and consumers in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products, and the impact these factors may have on our sales volumes, the pricing of our products and our ability to collect our receivables from customers; future purchases of our products by major industries which we serve and from which we derive a significant portion of our sales, including, without limitation, the food, beverage, animal nutrition, and brewing industries; the impact of COVID-19 on our business, the demand for our products and our financial results; the uncertainty of acceptance of products developed through genetic modification and biotechnology; our ability to develop or acquire new products and services at rates or of qualities sufficient to gain market acceptance; increased competitive and/or customer pressure in the corn-refining industry and related industries, including with respect to the markets and prices for our primary products and our co-products, particularly corn oil; price fluctuations, supply chain disruptions, and shortages affecting inputs to our production processes and delivery channels, including raw materials, energy costs and availability and freight and logistics; our ability to contain costs, achieve budgets and realize expected synergies, including with respect to our ability to complete planned maintenance and investment projects on time and on budget as well as with respect to freight and shipping costs; operating difficulties at our manufacturing facilities and liabilities relating to product safety and quality; the effects of climate change and legal, regulatory, and market measures to address climate change; our ability to successfully identify and complete acquisitions or strategic alliances on favorable terms as well as our ability to successfully integrate acquired businesses or implement and maintain strategic alliances and achieve anticipated synergies with respect to all of the foregoing; economic, political and other risks inherent in conducting operations in foreign countries and in foreign currencies; the behavior of financial and capital markets, including with respect to foreign currency fluctuations, fluctuations in interest and exchange rates and market volatility and the associated risks of hedging against such fluctuations; the failure to maintain satisfactory labor relations; our ability to attract, develop, motivate, and maintain good relationships with our workforce; the impact on our business of natural disasters, war, threats or acts of terrorism, the outbreak or continuation of pandemics such as COVID-19, or the occurrence of other significant events beyond our control; the impact of impairment charges on our goodwill or long-lived assets; changes in government policy, law, or regulation and costs of legal compliance, including compliance with environmental regulation; changes in our tax rates or exposure to additional income tax liability; increases in our borrowing costs that could result from increased interest rates; our ability to raise funds at reasonable rates and other factors affecting our access to sufficient funds for future growth and expansion; security breaches with respect to information technology systems, processes, and sites; volatility in the stock market and other factors that could adversely affect our stock price; risks affecting the continuation of our dividend policy; and our ability to maintain effective internal control over financial reporting.

Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in our Annual Report on Form 10-K for the year ended December 31, 2022, and our subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.

Ingredion Incorporated
Condensed Consolidated Statements of Income
(Unaudited)

(in millions, except per share amounts) Three Months Ended
September 30,
Change
%
Nine Months Ended
September 30,
Change
%
2023 2022 2023 2022
Net sales $ 2,033 $ 2,023 1 % $ 6,239 $ 5,959 5 %
Cost of sales 1,612 1,649 4,890 4,816
Gross profit 421 374 13 % 1,349 1,143 18 %
Operating expenses 203 180 13 % 578 528 9 %
Other operating (income) expense (5 ) 10 6 4
Restructuring/impairment charges 10 2 10 6
Operating income 213 182 17 % 755 605 25 %
Financing costs 26 24 88 65
Other non-operating expense (income) 2 (3 ) 4 (4 )
Income before income taxes 185 161 15 % 663 544 22 %
Provision for income taxes 25 52 145 157
Net income 160 109 47 % 518 387 34 %
Less: Net income attributable to non-controlling interests 2 3 6 9
Net income attributable to Ingredion $ 158 $ 106 49 % $ 512 $ 378 35 %
Earnings per common share attributable to Ingredion common shareholders:
Weighted average common shares outstanding:
Basic 66.0 65.8 66.1 66.4
Diluted 67.0 66.6 67.1 67.1
Earnings per common share of Ingredion:
Basic $ 2.39 $ 1.61 49 % $ 7.75 $ 5.69 36 %
Diluted $ 2.36 $ 1.59 48 % $ 7.63 $ 5.63 36 %

Ingredion Incorporated
Condensed Consolidated Balance Sheets

(in millions, except share and per share amounts) September 30, 2023 December 31, 2022
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 335 $ 236
Short-term investments 6 3
Accounts receivable, net 1,380 1,411
Inventories 1,502 1,597
Prepaid expenses 66 62
Total current assets 3,289 3,309
Property, plant and equipment, net 2,401 2,407
Intangible assets, net 1,296 1,301
Other assets 563 544
Total assets $ 7,549 $ 7,561
Liabilities and equity
Current liabilities
Short-term borrowings $ 466 $ 543
Accounts payable and accrued liabilities 1,202 1,339
Total current liabilities 1,668 1,882
Long-term debt 1,940 1,940
Other non-current liabilities 474 477
Total liabilities 4,082 4,299
Share-based payments subject to redemption 49 48
Redeemable non-controlling interests 41 51
Ingredion stockholders’ equity:
Preferred stock — authorized 25,000,000 shares — $0.01 par value, none issued
Common stock — authorized 200,000,000 shares — $0.01 par value, 77,810,875 issued at September 30, 2023 and December 31, 2022 1 1
Additional paid-in capital 1,143 1,132
Less: Treasury stock (common stock: 12,623,174 and 12,116,920 shares at September 30, 2023 and December 31, 2022, respectively) at cost (1,211 ) (1,148 )
Accumulated other comprehensive loss (1,144 ) (1,048 )
Retained earnings 4,575 4,210
Total Ingredion stockholders’ equity 3,364 3,147
Non-redeemable non-controlling interests 13 16
Total equity 3,377 3,163
Total liabilities and equity $ 7,549 $ 7,561

Ingredion Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited)

(in millions) Nine Months Ended September 30,
2023 2022
Cash provided by operating activities:
Net income $ 518 $ 387
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 165 160
Mechanical stores expense 48 42
Deferred income taxes (7 ) (3 )
Margin accounts 2 (11 )
Changes in other trade working capital (118 ) (578 )
Other 39 83
Cash provided by operating activities 647 80
Cash used for investing activities:
Capital expenditures and mechanical stores purchases (233 ) (203 )
Proceeds from disposal of manufacturing facilities and properties 2 7
Payments for acquisitions, net of cash acquired (7 )
Other (11 ) 1
Cash used for investing activities (242 ) (202 )
Cash (used for) provided by financing activities:
Proceeds from borrowings, net (16 ) 34
Commercial paper borrowings, net (57 ) 372
Repurchases of common stock, net (101 ) (112 )
Issuances of common stock for share-based compensation, net 18 1
Purchases of non-controlling interests (2 ) (40 )
Dividends paid, including to non-controlling interests (143 ) (133 )
Cash (used for) provided by financing activities (301 ) 122
Effect of foreign exchange rate changes on cash (5 ) (34 )
Increase (decrease) in cash and cash equivalents 99 (34 )
Cash and cash equivalents, beginning of period 236 328
Cash and cash equivalents, end of period $ 335 $ 294

Ingredion Incorporated
Supplemental Financial Information
(Unaudited)

I. Geographic Information of Net Sales and Operating Income

(in millions, except for percentages) Three Months Ended
September 30,
Change Change
Excl. FX
Nine Months Ended
September 30,
Change Change
Excl. FX
2023 2022 2023 2022
Net Sales
North America $ 1,300 $ 1,262 3 % 3 % $ 3,998 $ 3,720 7 % 8 %
South America 269 293 (8 %) (15 %) 795 835 (5 %) (5 %)
Asia-Pacific 272 278 (2 %) (2 %) 816 825 (1 %) 1 %
EMEA 192 190 1 % 5 % 630 579 9 % 19 %
Total Net Sales $ 2,033 $ 2,023 1 % % $ 6,239 $ 5,959 5 % 6 %
Operating Income
North America $ 171 $ 126 36 % 36 % $ 575 $ 443 30 % 30 %
South America 32 48 (33 %) (40 %) 96 125 (23 %) (22 %)
Asia-Pacific 33 27 22 % 22 % 88 70 26 % 29 %
EMEA 32 30 7 % 13 % 131 90 46 % 58 %
Corporate (49 ) (40 ) (23 %) (23 %) (124 ) (109 ) (14 %) (14 %)
Sub-total 219 191 15 % 14 % 766 619 24 % 27 %
Acquisition/integration costs (1 )
Restructuring/impairment charges (10 ) (10 ) (4 )
Other matters 4 (9 ) (1 ) (9 )
Total Operating Income $ 213 $ 182 17 % 16 % $ 755 $ 605 25 % 28 %

II. Non-GAAP Information

To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, restructuring and impairment charges, Mexico tax items, and other specified items. We generally use the term “adjusted” when referring to these non-GAAP amounts.

Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of our operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Non-GAAP financial measures are not prepared in accordance with GAAP; so our non-GAAP information is not necessarily comparable to similarly titled measures presented by other companies. A reconciliation of each non-GAAP financial measure to the most comparable GAAP measure is provided in the tables below.

Ingredion Incorporated
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (EPS) to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS
(Unaudited)

Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Nine Months Ended
September 30, 2023
Nine Months Ended
September 30, 2022
(in millions) Diluted EPS (in millions) Diluted EPS (in millions) Diluted EPS (in millions) Diluted EPS
Net income attributable to Ingredion $ 158 $ 2.36 $ 106 $ 1.59 $ 512 $ 7.63 $ 378 $ 5.63
Add back:
Acquisition/integration costs (i) 1 0.01
Restructuring/impairment charges (ii) 7 0.10 7 0.10 3 0.05
Other matters (iii) (3 ) (0.05 ) 7 0.11 1 0.01 7 0.11
Tax item – Mexico (iv) (1 ) (0.01 ) (1 ) (0.02 ) (15 ) (0.22 ) (2 ) (0.03 )
Other tax matters (v) (5 ) (0.07 ) 3 0.05 (5 ) (0.07 ) 2 0.03
Non-GAAP adjusted net income attributable to Ingredion $ 156 $ 2.33 $ 115 $ 1.73 $ 500 $ 7.45 $ 389 $ 5.80


Net income and EPS may not foot or recalculate due to rounding.

Notes
(i) During the nine months ended September 30, 2022, we recorded pre-tax acquisition and integration charges of $1 million for our acquisition and integration of KaTech, as well as our investment in the Argentina joint venture.

(ii) During the three months ended September 30, 2023, we recorded a $10 million pre-tax other-than-temporary impairment charge on our equity method investments. During the nine months ended September 30, 2022, we recorded $4 million of remaining pre-tax restructuring-related charges for the Cost Smart program.

(iii) During the nine months ended September 30, 2023, we recorded pre-tax charges of $5 million primarily related to the impacts of a U.S.-based work stoppage. This was partially offset by $4 million of insurance recoveries recorded during the three months ended September 30, 2023.

During the three months ended September 30, 2022, we recorded pre-tax charges of $9 million primarily related to the impacts of a U.S.-based work stoppage.

(iv) We recorded tax benefits of $1 million and $15 million for the three and nine months ended September 30, 2023, respectively, and tax benefits of $1 million and $2 million for the three and nine months ended September 30, 2022, respectively, as a result of the movement of the Mexican peso against the U.S. dollar and its impact on the remeasurement of our Mexico financial statements during the periods.

(v) This item relates to net prior year tax liabilities and contingencies, impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the above non-GAAP addbacks. These were offset by interest on previously recognized tax benefits for certain Brazilian local incentives which were previously taxable.

Ingredion Incorporated
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
(Unaudited)

(in millions, pre-tax) Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Operating income $ 213 $ 182 $ 755 $ 605
Add back:
Acquisition/integration costs (i) 1
Restructuring/impairment charges (ii) 10 10 4
Other matters (iii) (4 ) 9 1 9
Non-GAAP adjusted operating income $ 219 $ 191 $ 766 $ 619

For notes (i) through (iii), see notes (i) through (iii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

Ingredion Incorporated
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate
(Unaudited)

(in millions) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
As Reported $ 185 $ 25 13.5 % $ 663 $ 145 21.9 %
Add back:
Restructuring/impairment charges (ii) 10 3 10 3
Other matters (iii) (4 ) (1 ) 1
Tax item – Mexico (iv) 1 15
Other tax matters (v) 5 5
Adjusted Non-GAAP $ 191 $ 33 17.3 % $ 674 $ 168 24.9 %
(in millions) Three Months Ended September 30, 2022 Nine months ended September 30, 2022
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
As Reported $ 161 $ 52 32.3 % $ 544 $ 157 28.9 %
Add back:
Acquisition/integration costs (i) 1
Restructuring/impairment charges (ii) 4 1
Other matters (iii) 9 2 9 2
Tax item – Mexico (iv) 1 2
Other tax matters (v) (3 ) (2 )
Adjusted Non-GAAP $ 170 $ 52 30.6 % $ 558 $ 160 28.7 %

For notes (i) through (v), see notes (i) through (v) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

Ingredion Incorporated
Reconciliation of Expected GAAP Diluted Earnings per Share (GAAP EPS)
to Expected Adjusted Diluted Earnings per Share (Adjusted EPS)
(Unaudited)

Expected EPS Range
for Full-Year 2023
Low End of
Guidance
High End of
Guidance
GAAP EPS $ 9.25 $ 9.65
Add:
Impairment/restructuring charges (i) 0.10 0.10
Other matters (ii) 0.01 0.01
Tax item – Mexico (iii) (0.23 ) (0.23 )
Other tax matters (iv) (0.08 ) (0.08 )
Adjusted EPS $ 9.05 $ 9.45

Above is a reconciliation of our expected full-year 2023 diluted EPS to our expected full-year 2023 adjusted diluted EPS. The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. These amounts include, but are not limited to, adjustments to GAAP EPS for impairment and restructuring charges, other matters and certain other tax items. We generally exclude these adjustments from our adjusted EPS guidance. For these reasons, we are more confident in our ability to forecast adjusted EPS than we are in our ability to forecast GAAP EPS.

These adjustments to GAAP EPS for 2023 include the following:

(i) Other-than-temporary impairment charge on our equity method investments.
(ii) Charges primarily related to the impacts of a U.S.-based work stoppage and partially offset by insurance recoveries.
(iii) Tax benefit as a result of the movement of the Mexican peso against the U.S. dollar and its impact on the remeasurement of the Company’s Mexico financial statements during the period.
(iv) Tax items relating to net prior year tax liabilities and contingencies, impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the above non-GAAP addbacks. These were offset by interest on previously recognized tax benefits for certain Brazilian local incentives which were previously taxable.

Ingredion Incorporated
Reconciliation of Expected GAAP Effective Tax Rate (GAAP ETR)
to Expected Adjusted Effective Tax Rate (Adjusted ETR)
(Unaudited)

Expected Effective Tax Rate Range
for Full-Year 2023
Low End of
Guidance
High End of
Guidance
GAAP ETR 22.5 % 23.5 %
Add:
Restructuring/impairment charges (i) 0.1 % 0.1 %
Other matters (ii) % %
Tax item – Mexico (iii) 1.8 % 1.8 %
Other tax matters (iv) 0.6 % 0.6 %
Adjusted ETR 25.0 % 26.0 %

Above is a reconciliation of our expected full-year 2023 GAAP ETR to our expected full-year 2023 adjusted ETR. The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. These amounts include, but are not limited to, adjustments to GAAP ETR for restructuring/impairment charges, other matters and certain other tax items. We generally exclude these adjustments from our adjusted ETR guidance. For these reasons, we are more confident in our ability to forecast adjusted ETR than we are in our ability to forecast GAAP ETR.

These adjustments to GAAP ETR for 2023 include the following:

(i) Tax impact from other-than-temporary impairment charges on our equity method investments.
(ii) Tax impact primarily on charges related to the impacts of a U.S.-based work stoppage, partially offset by tax impact from insurance recoveries.
(iii) Tax benefit as a result of the movement of the Mexican peso against the U.S. dollar and its impact to the remeasurement of our Mexico financial statements during the period.
(iv) Tax impact from net prior year tax liabilities and contingencies, impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the above non-GAAP addbacks. These were offset by interest on previously recognized tax benefits for certain Brazilian local incentives which were previously taxable.

CONTACTS:
Investors:
Noah Weiss, 773-896-5242
Media: Becca Hary, 708-551-2602

GlobeNewswire Distribution ID 8973945

King Faisal Specialist Hospital & Research Centre ประสบความสำเร็จในการสรุปบทบาทในฐานะพันธมิตรด้านการดูแลสุขภาพเชิงกลยุทธ์ที่งาน Global Health Exhibition 2023

ริยาด ซาอุดีอาระเบีย, Nov. 07, 2023 (GLOBE NEWSWIRE) — งาน Global Health Exhibition ซึ่งจัดขึ้นตั้งแต่วันที่ 29 ตุลาคมถึง 31 ตุลาคม 2023 ได้รับพิสูจน์แล้วว่าประสบความสำเร็จอย่างยิ่งสำหรับ King Faisal Specialist Hospital & Research Centre (KFSH&RC)

ในฐานะที่ KFSH&RC เป็นพันธมิตรด้านการดูแลสุขภาพเชิงกลยุทธ์ จึงได้จัดแสดงโครงการริเริ่มที่ก้าวล้ำซึ่งมีจุดมุ่งหมายเพื่อเพิ่มประสิทธิภาพการดำเนินงานในด้านการแพทย์ที่สำคัญ ครอบคลุมเส้นทางการดูแลผู้ป่วย การวิจัยอวกาศ การศึกษาทางพันธุกรรม เทคนิคการฉายรังสีที่ล้ำสมัย ความก้าวหน้าในการปลูกถ่ายอวัยวะ (รวมถึงการปลูกถ่ายอวัยวะจากผู้บริจาคที่ยังมีชีวิตด้วยหุ่นยนต์เต็มรูปแบบครั้งแรกของโลก) การจัดการศักยภาพ และการผลิตเภสัชภัณฑ์รังสีเพื่อการพึ่งตนเองในราชอาณาจักร

ในวันเปิดงาน H.E ดร. Majid Al Fayyadh กล่าวปาฐกถาพิเศษโดยมุ่งเน้นไปที่อนาคตอันสดใสของการท่องเที่ยวเชิงการแพทย์ในราชอาณาจักร โดยตอกย้ำความพยายามอย่างต่อเนื่องของ KFSH&RC ในการยกระดับบริการสำหรับผู้ป่วยต่างชาติ “เส้นทางการเปลี่ยนแปลงของ KFSH&RC สู่สถาบันที่ไม่แสวงหาผลกำไร โดยมุ่งเน้นที่การให้บริการผู้ป่วยจากภูมิภาคอ่าวไทยเป็นหลักนั้น ได้เริ่มต้นในปี 2021 ในปีแรก โรงพยาบาลรับผู้ป่วยได้ 250 ราย และนับตั้งแต่นั้นเป็นต้นมา เราพบว่ามีการเติบโตอย่างน่าประทับใจถึง 40% ต่อปี เราตั้งเป้าที่จะขยายการดูแลรักษาของเราเป็น 10,000 รายภายในปี 2030″

ดร. Yaseen Mallawi ซึ่งรักษาการแทนประธานเจ้าหน้าที่บริหารการให้บริการทางสาธารณสุขของ KFSH&RC ได้เข้าร่วมเสวนาในหัวข้อ “ความท้าทายในการเร่งการเปลี่ยนแปลงของภาคส่วนสุขภาพของซาอุดีอาระเบีย” โดยเขาเน้นย้ำถึงความมุ่งมั่นของโรงพยาบาลในการจัดลำดับความสำคัญของความเป็นอยู่ที่ดีตามที่ควรเป็นของผู้ป่วย ซึ่งอยู่ภายในระบบการดูแลสุขภาพที่เน้นคุณค่า

Muhannad Al Kadi ประธานเจ้าหน้าที่ฝ่ายสื่อสารและการตลาดขององค์กรของ KFSH&RC ได้แสดงความยินดีกับความสำเร็จของฟอรัม โดยกล่าวว่า “เรารู้สึกเป็นเกียรติที่ได้พบปะกับผู้นำภาคส่วนต่าง ๆ แบ่งปันวิสัยทัศน์ของเรา และเป็นสักขีพยานถึงผลกระทบของความร่วมมือของเรา งาน Global Health Exhibition เป็นเวทีที่โดดเด่นในการสำรวจโอกาสใหม่ ๆ ที่จะส่งเสริมภูมิทัศน์ด้านการดูแลสุขภาพในราชอาณาจักรและที่อื่น ๆ”

ผู้เชี่ยวชาญของ KFSH&RC มีส่วนร่วมอย่างแข็งขันในการอภิปรายแบบคณะที่หลากหลาย ดร. Dieter Broering กรรมการบริหารของศูนย์การปลูกถ่ายอวัยวะเพื่อความเป็นเลิศ ได้แบ่งปันข้อมูลเชิงลึกเกี่ยวกับศักยภาพของเทคโนโลยีการผ่าตัดที่ล้ำสมัยในการปรับเปลี่ยนการดูแลสุขภาพ ดร. Mohammed Alhamid ผู้อำนวยการของศูนย์การดูแลสุขภาพอัจฉริยะได้กล่าวสุนทรพจน์ที่ชวนกระตุ้นความคิดเกี่ยวกับการดูแลสุขภาพที่ขับเคลื่อนด้วย AI โดยให้ความกระจ่างเกี่ยวกับอนาคตของข่าวกรองด้านการดูแลสุขภาพ

นอกจากนี้ งานดังกล่าวถือเป็นก้าวสำคัญสำหรับ KFSH&RC เนื่องจากองค์กรได้เฉลิมฉลองกระบวนการรักษาแบบ Car-T Cell ครั้งที่ 100 ซึ่งถือเป็นความสำเร็จที่น่าจดจำในตะวันออกกลาง โรงพยาบาลยังได้รับรางวัลอันทรงเกียรติ ได้แก่ การเป็น “ศูนย์บริการทางโทรศัพท์สาธารณะที่ดีที่สุดแห่งปี ด้านวิกฤต” จากงานประกาศผลรางวัลศูนย์บริการทางโทรศัพท์ในตะวันออกกลางประจำปี 2023

นอกเหนือจากงาน Global Health Exhibition KFSH&RC ยังได้ประทับตรายืนยันใน MoU ที่สำคัญต่าง ๆ โดยร่วมมือกับ SABIC ซึ่งเป็นผู้นำระดับโลกในด้านเคมีภัณฑ์ที่หลากหลาย เพื่อขับเคลื่อนการพัฒนาและนวัตกรรมผลิตภัณฑ์ดูแลสุขภาพ King Faisal Specialist Hospital International Holding Company ซึ่งเป็นหน่วยงานด้านการลงทุนของ KFSH&RC ได้จัดตั้งความร่วมมือเชิงกลยุทธ์กับ Solutions by STC เพื่อปรับปรุงภูมิทัศน์ธุรกิจด้านการดูแลสุขภาพ และระบุพื้นที่การเติบโตร่วมกันในภาคส่วนนี้

อีกทั้งยังได้มีการลงนามใน MoU เพิ่มเติมกับ Microsoft อาระเบียโดยมุ่งเน้นไปที่ความยั่งยืนและนวัตกรรมเพื่อการดูแลผู้ป่วยที่ดีขึ้น และกับ Hevolution Foundation ซึ่งเน้นย้ำถึงความก้าวหน้าของการวิจัยในเรื่องของการมีอายุยืนยาวและการเปลี่ยนแปลงไปตามวัย KFSH&RC ยังได้ร่วมมือกับ Illumina และลงนามใน MoU กับ Johnson & Johnson โดยมีวิสัยทัศน์หลักในการปฏิวัติการฝึกอบรมด้านศัลยกรรมในภูมิภาค

ข้อมูลติดต่อ:
kfshrc@mcsaatchi.com

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Ingredion Incorporated Reports Strong Third Quarter Results and Raises Full-Year Outlook

  • Third quarter 2023 reported and adjusted operating income* grew 17% and 15%, respectively, compared to PY
  • Third quarter 2023 reported and adjusted EPS* were $2.36 and $2.33, an increase of 48% and 35%, respectively
  • The Company raises its full year adjusted EPS outlook to $9.05-$9.45, up from $8.80-$9.40

WESTCHESTER, Ill., Nov. 07, 2023 (GLOBE NEWSWIRE) — Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported results for the third quarter of 2023. The results, reported in accordance with U.S. generally accepted accounting principles (“GAAP”) for the third quarter of 2023 and 2022, include items that are excluded from the non-GAAP financial measures that the Company presents.

“We continued to successfully manage our business in the third quarter with our approach to product pricing and customer mix, while also driving operational excellence and productivity to mitigate the impact of cost inflation. This enabled us to deliver 15% adjusted operating income growth for the quarter,” said Jim Zallie, Ingredion’s president and chief executive officer.

“Our business continues to demonstrate resilience, evidenced by the diversity of our markets and product portfolio, and the strength of our business model. For example, our Food Systems business in Europe demonstrated mid-single-digit volume growth from greater penetration into private label. While lower corn costs around the globe contributed to lower net sales growth, we were encouraged by sequential quarterly improvement in sales volumes despite inventory rebalancing by customers that continued to work its way through the supply chain.”

“Our updated full-year guidance reflects our confidence to deliver revenue and profit growth above our four-year growth outlook. We continue to execute against our Driving Growth Roadmap creating long-term value for shareholders, and are committed to total shareholder return as evidenced by the increase in the dividend rate and shares repurchased during the quarter,” Zallie concluded.

*Adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income and adjusted effective income tax rate are non-GAAP financial measures. See section II of the Supplemental Financial Information entitled “Non-GAAP Information” following the Condensed Consolidated Financial Statements included in this news release for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.

Diluted Earnings Per Share (EPS)

3Q22 3Q23 Reported EPS $1.59 $2.36 Restructuring/Impairment costs 0.10 Tax items and other matters 0.14 (0.13) Adjusted EPS** $1.73 $2.33


Estimated factors affecting changes in Reported and Adjusted EPS

3Q23
Total items affecting EPS** 0.60
Total operating items 0.29
Margin 0.66
Volume (0.36)
Foreign exchange 0.02
Other income (0.03)
Total non-operating items 0.31
Other non-operating income (0.04)
Financing costs (0.01)
Tax Rate 0.36
Shares outstanding (0.01)
Non-controlling interests 0.01

**Totals may not foot due to rounding;

Financial Highlights

  • At September 30, 2023, total debt and cash, including short-term investments, were $2.4 billion and $341 million, respectively, versus $2.5 billion and $239 million, respectively, at December 31, 2022.
  • Reported net financing costs for the third quarter were $26 million versus $24 million for the year-ago period.
  • Reported and adjusted effective tax rates for the quarter were 13.5% and 17.3%, respectively, compared to 32.3% and 30.6%, respectively, in the year-ago period. The decrease in the reported effective tax rate was primarily driven by a recently issued IRS Notice 2023-55 allowing the Company to claim certain foreign tax credits against U.S. taxes, favorable country earnings mix primarily due to Brazil tax law developments, and a related increase in the Company’s foreign-derived intangible income deduction.
  • Capital expenditures, net were $231 million, up $35 million from the year-ago period.

Business Review

Total Ingredion
Net Sales

$ in millions 2022 FX Impact Volume Price/mix 2023 Change Change
excl. FX
Third Quarter 2,023 10 (159) 159 2,033 1% 0%
Year-to-Date 5,959 (100) (500) 880 6,239 5% 6%


Reported Operating Income

$ in millions 2022 FX Impact Business Drivers Acquisition /
Integration
Restructuring / Impairment Other 2023 Change Change
excl. FX
Third Quarter 182 1 27 (10) 13 213 17% 16%
Year-to-Date 605 (18) 165 1 (6) 8 755 25% 28%


Adjusted Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 191 1 27 219 15% 14%
Year-to-Date 619 (18) 165 766 24% 27%


Net Sales

  • Third quarter and year-to-date net sales were up from the year-ago period 1% and 5%, respectively. The increases were driven by both price mix and foreign exchange impacts, partially offset by volume declines. Excluding foreign exchange impacts, net sales were flat and up 6%, respectively, for the quarter and year-to-date.

Operating Income

  • Third quarter reported and adjusted operating income were $213 million and $219 million, an increase of 17% and 15%, respectively, versus the prior year. The increases were driven by favorable price mix, partially offset by higher input costs and lower volume. Excluding foreign exchange impacts, reported and adjusted operating income were up 16% and 14%, respectively, from the same periods last year.
  • Year-to-date reported and adjusted operating income were $755 million and $766 million, an increase of 25% and 24%, respectively, versus the year-ago period. The increases in reported and adjusted operating income were attributable to favorable price mix, partially offset by higher raw material and input costs and lower volume. Excluding foreign exchange impacts, reported and adjusted operating income were up 28% and 27%, respectively, from the same periods last year.

North America
Net Sales

$ in millions 2022 FX Impact Volume Price
Mix
2023 Change Change
excl. FX
Third Quarter 1,262 (3) (110) 151 1,300 3% 3%
Year-to-Date 3,720 (18) (316) 612 3,998 7% 8%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 126 0 45 171 36% 36%
Year-to-Date 443 (3) 135 575 30% 30%
  • Third quarter operating income for North America was $171 million, an increase of $45 million from the year-ago period, and year-to-date operating income was $575 million, an increase of $132 million from the year-ago period. The increases for both periods were driven by favorable price mix, partially offset by higher input costs and lower volume.

South America
Net Sales

$ in millions 2022 FX Impact Volume Price
mix
2023 Change Change
excl. FX
Third Quarter 293 21 (14) (31) 269 -8% -15%
Year-to-Date 835 (2) (63) 25 795 -5% -5%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 48 3 (19) 32 -33% -40%
Year-to-Date 125 (2) (27) 96 -23% -22%
  • Third quarter operating income for South America was $32 million, a decrease of $16 million from the year-ago period, and year-to-date operating income was $96 million, a decrease of $29 million from the year-ago period. The decrease in both periods was driven primarily by lower volume and higher energy costs. Excluding foreign exchange impacts, segment operating income was down -40% and -22%, respectively, for the third quarter and year-to-date.

Asia-Pacific
Net Sales

$ in millions 2022 FX Impact Volume Price
mix
2023 Change Change
excl. FX
Third Quarter 278 0 (11) 5 272 -2% -2%
Year-to-Date 825 (21) (65) 77 816 -1% 1%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 27 0 6 33 22% 22%
Year-to-Date 70 (2) 20 88 26% 29%
  • Third quarter operating income for Asia-Pacific was $33 million, up $6 million from the year-ago period, and year-to-date operating income was $88 million, an increase of $18 million from the year-ago period. The change in both periods was driven by favorable price mix, partially offset by higher input costs and lower volumes. Excluding foreign exchange impacts, segment operating income was up 22% and 29%, respectively, for the third quarter and year-to-date.

Europe, Middle East, and Africa (EMEA)
Net Sales

$ in millions 2022 FX Impact Volume Price
mix
2023 Change Change
excl. FX
Third Quarter 190 (8) (24) 34 192 1% 5%
Year-to-Date 579 (59) (56) 166 630 9% 19%


Segment Operating Income

$ in millions 2022 FX Impact Business Drivers 2023 Change Change
excl. FX
Third Quarter 30 (2) 4 32 7% 13%
Year-to-Date 90 (11) 52 131 46% 58%
  • Third quarter operating income for EMEA was $32 million, up $2 million from the year-ago period, and year-to-date operating income was $131 million, an increase of $41 million from the year-ago period. The changes were driven by favorable price mix, partially offset by lower volume, higher raw material costs and foreign exchange impacts. Excluding foreign exchange impacts, segment operating income was up 13% and 58%, respectively, for the third quarter and year-to-date.

Dividends and Share Repurchases
In the first nine months of 2023, the Company paid $143 million in dividends to shareholders. The Company declared a quarterly dividend of $0.78 per share that was paid on October 24, 2023, which represented a 10% increase from the prior quarterly dividend rate, for the ninth consecutive annual increase. During the quarter, the Company repurchased $101 million of outstanding shares of common stock. To support total shareholder return as an important element of its capital allocation strategy, the Company is dedicated to returning value to shareholders through cash dividends and share repurchases.

Updated 2023 Full-Year Outlook
The Company expects its outlook for full-year 2023 reported and adjusted EPS to be in the range of $9.25 to $9.65 and $9.05 to $9.45, respectively. This expectation excludes acquisition-related integration and restructuring costs, as well as any potential impairment costs.

The Company now expects full-year 2023 net sales to be up mid-single-digits reflecting softer volume demand. Reported and adjusted operating income are both expected to be up high double-digits.

Compared to last year, the 2023 full-year outlook now assumes the following: North America operating income is expected to be up 20% to 25%, with price mix continuing to outpace lower volume and cost increases; South America operating income is expected to be down mid to high-teens, with higher input costs more than offsetting favorable price mix; Asia-Pacific operating income is expected to be up high double-digits, driven by favorable price mix and PureCircle growth, partially offset by higher input costs; and EMEA operating income is expected to be up 40% to 45% driven by favorable price mix. Corporate costs are expected to be up high single-digits.

For full-year 2023, the Company expects a reported and adjusted effective tax rate of 22.5% to 23.5% and 25.0% to 26.0%, respectively.

Cash from operations for full-year 2023 is now expected to be in the range of $650 million to $750 million. Capital expenditures for the full year are expected to be approximately $310 million.

Conference Call and Webcast Details
Ingredion will host a conference call on Tuesday, November 7, 2023, at 8 a.m. CT/9 a.m. ET, hosted by Jim Zallie, president and chief executive officer, and Jim Gray, executive vice president and chief financial officer. The call will be webcast in real-time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be accessible through the Company’s website and available to download a few hours prior to the start of the call. A replay will be available for a limited time at https://ir.ingredionincorporated.com/financial-information/quarterly-results.

About the Company

Ingredion Incorporated (NYSE: INGR) headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2022 annual net sales of nearly $8 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion’s Idea Labs® innovation centers around the world and approximately 12,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news.

Forward-Looking Statements

This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements.

Forward-looking statements include, among others, any statements regarding the Company’s expectations for full-year 2023 reported and adjusted EPS, net sales, reported and adjusted operating income, segment operating income, corporate costs, reported and adjusted effective tax rate, cash from operations, capital expenditures, and any other statements regarding the Company’s prospects and its future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations or beliefs underlying any of the foregoing.

These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “propels,” “opportunities,” “potential,” “provisional,” or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are “forward-looking statements.”

These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct.

Actual results and developments may differ materially from the expectations expressed in or implied by these statements, based on various risks and uncertainties, including effects of the conflict between Russia and Ukraine, including the impacts on the availability and prices of raw materials and energy supplies and volatility in foreign exchange and interest rates; changing consumption preferences relating to high fructose corn syrup and other products we make; the effects of global economic conditions and the general political, economic, business, and market conditions that affect customers and consumers in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products, and the impact these factors may have on our sales volumes, the pricing of our products and our ability to collect our receivables from customers; future purchases of our products by major industries which we serve and from which we derive a significant portion of our sales, including, without limitation, the food, beverage, animal nutrition, and brewing industries; the impact of COVID-19 on our business, the demand for our products and our financial results; the uncertainty of acceptance of products developed through genetic modification and biotechnology; our ability to develop or acquire new products and services at rates or of qualities sufficient to gain market acceptance; increased competitive and/or customer pressure in the corn-refining industry and related industries, including with respect to the markets and prices for our primary products and our co-products, particularly corn oil; price fluctuations, supply chain disruptions, and shortages affecting inputs to our production processes and delivery channels, including raw materials, energy costs and availability and freight and logistics; our ability to contain costs, achieve budgets and realize expected synergies, including with respect to our ability to complete planned maintenance and investment projects on time and on budget as well as with respect to freight and shipping costs; operating difficulties at our manufacturing facilities and liabilities relating to product safety and quality; the effects of climate change and legal, regulatory, and market measures to address climate change; our ability to successfully identify and complete acquisitions or strategic alliances on favorable terms as well as our ability to successfully integrate acquired businesses or implement and maintain strategic alliances and achieve anticipated synergies with respect to all of the foregoing; economic, political and other risks inherent in conducting operations in foreign countries and in foreign currencies; the behavior of financial and capital markets, including with respect to foreign currency fluctuations, fluctuations in interest and exchange rates and market volatility and the associated risks of hedging against such fluctuations; the failure to maintain satisfactory labor relations; our ability to attract, develop, motivate, and maintain good relationships with our workforce; the impact on our business of natural disasters, war, threats or acts of terrorism, the outbreak or continuation of pandemics such as COVID-19, or the occurrence of other significant events beyond our control; the impact of impairment charges on our goodwill or long-lived assets; changes in government policy, law, or regulation and costs of legal compliance, including compliance with environmental regulation; changes in our tax rates or exposure to additional income tax liability; increases in our borrowing costs that could result from increased interest rates; our ability to raise funds at reasonable rates and other factors affecting our access to sufficient funds for future growth and expansion; security breaches with respect to information technology systems, processes, and sites; volatility in the stock market and other factors that could adversely affect our stock price; risks affecting the continuation of our dividend policy; and our ability to maintain effective internal control over financial reporting.

Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in our Annual Report on Form 10-K for the year ended December 31, 2022, and our subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.

Ingredion Incorporated
Condensed Consolidated Statements of Income
(Unaudited)

(in millions, except per share amounts) Three Months Ended
September 30,
Change
%
Nine Months Ended
September 30,
Change
%
2023 2022 2023 2022
Net sales $ 2,033 $ 2,023 1 % $ 6,239 $ 5,959 5 %
Cost of sales 1,612 1,649 4,890 4,816
Gross profit 421 374 13 % 1,349 1,143 18 %
Operating expenses 203 180 13 % 578 528 9 %
Other operating (income) expense (5 ) 10 6 4
Restructuring/impairment charges 10 2 10 6
Operating income 213 182 17 % 755 605 25 %
Financing costs 26 24 88 65
Other non-operating expense (income) 2 (3 ) 4 (4 )
Income before income taxes 185 161 15 % 663 544 22 %
Provision for income taxes 25 52 145 157
Net income 160 109 47 % 518 387 34 %
Less: Net income attributable to non-controlling interests 2 3 6 9
Net income attributable to Ingredion $ 158 $ 106 49 % $ 512 $ 378 35 %
Earnings per common share attributable to Ingredion common shareholders:
Weighted average common shares outstanding:
Basic 66.0 65.8 66.1 66.4
Diluted 67.0 66.6 67.1 67.1
Earnings per common share of Ingredion:
Basic $ 2.39 $ 1.61 49 % $ 7.75 $ 5.69 36 %
Diluted $ 2.36 $ 1.59 48 % $ 7.63 $ 5.63 36 %

Ingredion Incorporated
Condensed Consolidated Balance Sheets

(in millions, except share and per share amounts) September 30, 2023 December 31, 2022
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 335 $ 236
Short-term investments 6 3
Accounts receivable, net 1,380 1,411
Inventories 1,502 1,597
Prepaid expenses 66 62
Total current assets 3,289 3,309
Property, plant and equipment, net 2,401 2,407
Intangible assets, net 1,296 1,301
Other assets 563 544
Total assets $ 7,549 $ 7,561
Liabilities and equity
Current liabilities
Short-term borrowings $ 466 $ 543
Accounts payable and accrued liabilities 1,202 1,339
Total current liabilities 1,668 1,882
Long-term debt 1,940 1,940
Other non-current liabilities 474 477
Total liabilities 4,082 4,299
Share-based payments subject to redemption 49 48
Redeemable non-controlling interests 41 51
Ingredion stockholders’ equity:
Preferred stock — authorized 25,000,000 shares — $0.01 par value, none issued
Common stock — authorized 200,000,000 shares — $0.01 par value, 77,810,875 issued at September 30, 2023 and December 31, 2022 1 1
Additional paid-in capital 1,143 1,132
Less: Treasury stock (common stock: 12,623,174 and 12,116,920 shares at September 30, 2023 and December 31, 2022, respectively) at cost (1,211 ) (1,148 )
Accumulated other comprehensive loss (1,144 ) (1,048 )
Retained earnings 4,575 4,210
Total Ingredion stockholders’ equity 3,364 3,147
Non-redeemable non-controlling interests 13 16
Total equity 3,377 3,163
Total liabilities and equity $ 7,549 $ 7,561

Ingredion Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited)

(in millions) Nine Months Ended September 30,
2023 2022
Cash provided by operating activities:
Net income $ 518 $ 387
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 165 160
Mechanical stores expense 48 42
Deferred income taxes (7 ) (3 )
Margin accounts 2 (11 )
Changes in other trade working capital (118 ) (578 )
Other 39 83
Cash provided by operating activities 647 80
Cash used for investing activities:
Capital expenditures and mechanical stores purchases (233 ) (203 )
Proceeds from disposal of manufacturing facilities and properties 2 7
Payments for acquisitions, net of cash acquired (7 )
Other (11 ) 1
Cash used for investing activities (242 ) (202 )
Cash (used for) provided by financing activities:
Proceeds from borrowings, net (16 ) 34
Commercial paper borrowings, net (57 ) 372
Repurchases of common stock, net (101 ) (112 )
Issuances of common stock for share-based compensation, net 18 1
Purchases of non-controlling interests (2 ) (40 )
Dividends paid, including to non-controlling interests (143 ) (133 )
Cash (used for) provided by financing activities (301 ) 122
Effect of foreign exchange rate changes on cash (5 ) (34 )
Increase (decrease) in cash and cash equivalents 99 (34 )
Cash and cash equivalents, beginning of period 236 328
Cash and cash equivalents, end of period $ 335 $ 294

Ingredion Incorporated
Supplemental Financial Information
(Unaudited)

I. Geographic Information of Net Sales and Operating Income

(in millions, except for percentages) Three Months Ended
September 30,
Change Change
Excl. FX
Nine Months Ended
September 30,
Change Change
Excl. FX
2023 2022 2023 2022
Net Sales
North America $ 1,300 $ 1,262 3 % 3 % $ 3,998 $ 3,720 7 % 8 %
South America 269 293 (8 %) (15 %) 795 835 (5 %) (5 %)
Asia-Pacific 272 278 (2 %) (2 %) 816 825 (1 %) 1 %
EMEA 192 190 1 % 5 % 630 579 9 % 19 %
Total Net Sales $ 2,033 $ 2,023 1 % % $ 6,239 $ 5,959 5 % 6 %
Operating Income
North America $ 171 $ 126 36 % 36 % $ 575 $ 443 30 % 30 %
South America 32 48 (33 %) (40 %) 96 125 (23 %) (22 %)
Asia-Pacific 33 27 22 % 22 % 88 70 26 % 29 %
EMEA 32 30 7 % 13 % 131 90 46 % 58 %
Corporate (49 ) (40 ) (23 %) (23 %) (124 ) (109 ) (14 %) (14 %)
Sub-total 219 191 15 % 14 % 766 619 24 % 27 %
Acquisition/integration costs (1 )
Restructuring/impairment charges (10 ) (10 ) (4 )
Other matters 4 (9 ) (1 ) (9 )
Total Operating Income $ 213 $ 182 17 % 16 % $ 755 $ 605 25 % 28 %

II. Non-GAAP Information

To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, restructuring and impairment charges, Mexico tax items, and other specified items. We generally use the term “adjusted” when referring to these non-GAAP amounts.

Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of our operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Non-GAAP financial measures are not prepared in accordance with GAAP; so our non-GAAP information is not necessarily comparable to similarly titled measures presented by other companies. A reconciliation of each non-GAAP financial measure to the most comparable GAAP measure is provided in the tables below.

Ingredion Incorporated
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (EPS) to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS
(Unaudited)

Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Nine Months Ended
September 30, 2023
Nine Months Ended
September 30, 2022
(in millions) Diluted EPS (in millions) Diluted EPS (in millions) Diluted EPS (in millions) Diluted EPS
Net income attributable to Ingredion $ 158 $ 2.36 $ 106 $ 1.59 $ 512 $ 7.63 $ 378 $ 5.63
Add back:
Acquisition/integration costs (i) 1 0.01
Restructuring/impairment charges (ii) 7 0.10 7 0.10 3 0.05
Other matters (iii) (3 ) (0.05 ) 7 0.11 1 0.01 7 0.11
Tax item – Mexico (iv) (1 ) (0.01 ) (1 ) (0.02 ) (15 ) (0.22 ) (2 ) (0.03 )
Other tax matters (v) (5 ) (0.07 ) 3 0.05 (5 ) (0.07 ) 2 0.03
Non-GAAP adjusted net income attributable to Ingredion $ 156 $ 2.33 $ 115 $ 1.73 $ 500 $ 7.45 $ 389 $ 5.80


Net income and EPS may not foot or recalculate due to rounding.

Notes
(i) During the nine months ended September 30, 2022, we recorded pre-tax acquisition and integration charges of $1 million for our acquisition and integration of KaTech, as well as our investment in the Argentina joint venture.

(ii) During the three months ended September 30, 2023, we recorded a $10 million pre-tax other-than-temporary impairment charge on our equity method investments. During the nine months ended September 30, 2022, we recorded $4 million of remaining pre-tax restructuring-related charges for the Cost Smart program.

(iii) During the nine months ended September 30, 2023, we recorded pre-tax charges of $5 million primarily related to the impacts of a U.S.-based work stoppage. This was partially offset by $4 million of insurance recoveries recorded during the three months ended September 30, 2023.

During the three months ended September 30, 2022, we recorded pre-tax charges of $9 million primarily related to the impacts of a U.S.-based work stoppage.

(iv) We recorded tax benefits of $1 million and $15 million for the three and nine months ended September 30, 2023, respectively, and tax benefits of $1 million and $2 million for the three and nine months ended September 30, 2022, respectively, as a result of the movement of the Mexican peso against the U.S. dollar and its impact on the remeasurement of our Mexico financial statements during the periods.

(v) This item relates to net prior year tax liabilities and contingencies, impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the above non-GAAP addbacks. These were offset by interest on previously recognized tax benefits for certain Brazilian local incentives which were previously taxable.

Ingredion Incorporated
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
(Unaudited)

(in millions, pre-tax) Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Operating income $ 213 $ 182 $ 755 $ 605
Add back:
Acquisition/integration costs (i) 1
Restructuring/impairment charges (ii) 10 10 4
Other matters (iii) (4 ) 9 1 9
Non-GAAP adjusted operating income $ 219 $ 191 $ 766 $ 619

For notes (i) through (iii), see notes (i) through (iii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

Ingredion Incorporated
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate
(Unaudited)

(in millions) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
As Reported $ 185 $ 25 13.5 % $ 663 $ 145 21.9 %
Add back:
Restructuring/impairment charges (ii) 10 3 10 3
Other matters (iii) (4 ) (1 ) 1
Tax item – Mexico (iv) 1 15
Other tax matters (v) 5 5
Adjusted Non-GAAP $ 191 $ 33 17.3 % $ 674 $ 168 24.9 %
(in millions) Three Months Ended September 30, 2022 Nine months ended September 30, 2022
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
Income before
Income Taxes (a)
Provision for
Income Taxes (b)
Effective Income
Tax Rate (b/a)
As Reported $ 161 $ 52 32.3 % $ 544 $ 157 28.9 %
Add back:
Acquisition/integration costs (i) 1
Restructuring/impairment charges (ii) 4 1
Other matters (iii) 9 2 9 2
Tax item – Mexico (iv) 1 2
Other tax matters (v) (3 ) (2 )
Adjusted Non-GAAP $ 170 $ 52 30.6 % $ 558 $ 160 28.7 %

For notes (i) through (v), see notes (i) through (v) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

Ingredion Incorporated
Reconciliation of Expected GAAP Diluted Earnings per Share (GAAP EPS)
to Expected Adjusted Diluted Earnings per Share (Adjusted EPS)
(Unaudited)

Expected EPS Range
for Full-Year 2023
Low End of
Guidance
High End of
Guidance
GAAP EPS $ 9.25 $ 9.65
Add:
Impairment/restructuring charges (i) 0.10 0.10
Other matters (ii) 0.01 0.01
Tax item – Mexico (iii) (0.23 ) (0.23 )
Other tax matters (iv) (0.08 ) (0.08 )
Adjusted EPS $ 9.05 $ 9.45

Above is a reconciliation of our expected full-year 2023 diluted EPS to our expected full-year 2023 adjusted diluted EPS. The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. These amounts include, but are not limited to, adjustments to GAAP EPS for impairment and restructuring charges, other matters and certain other tax items. We generally exclude these adjustments from our adjusted EPS guidance. For these reasons, we are more confident in our ability to forecast adjusted EPS than we are in our ability to forecast GAAP EPS.

These adjustments to GAAP EPS for 2023 include the following:

(i) Other-than-temporary impairment charge on our equity method investments.
(ii) Charges primarily related to the impacts of a U.S.-based work stoppage and partially offset by insurance recoveries.
(iii) Tax benefit as a result of the movement of the Mexican peso against the U.S. dollar and its impact on the remeasurement of the Company’s Mexico financial statements during the period.
(iv) Tax items relating to net prior year tax liabilities and contingencies, impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the above non-GAAP addbacks. These were offset by interest on previously recognized tax benefits for certain Brazilian local incentives which were previously taxable.

Ingredion Incorporated
Reconciliation of Expected GAAP Effective Tax Rate (GAAP ETR)
to Expected Adjusted Effective Tax Rate (Adjusted ETR)
(Unaudited)

Expected Effective Tax Rate Range
for Full-Year 2023
Low End of
Guidance
High End of
Guidance
GAAP ETR 22.5 % 23.5 %
Add:
Restructuring/impairment charges (i) 0.1 % 0.1 %
Other matters (ii) % %
Tax item – Mexico (iii) 1.8 % 1.8 %
Other tax matters (iv) 0.6 % 0.6 %
Adjusted ETR 25.0 % 26.0 %

Above is a reconciliation of our expected full-year 2023 GAAP ETR to our expected full-year 2023 adjusted ETR. The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. These amounts include, but are not limited to, adjustments to GAAP ETR for restructuring/impairment charges, other matters and certain other tax items. We generally exclude these adjustments from our adjusted ETR guidance. For these reasons, we are more confident in our ability to forecast adjusted ETR than we are in our ability to forecast GAAP ETR.

These adjustments to GAAP ETR for 2023 include the following:

(i) Tax impact from other-than-temporary impairment charges on our equity method investments.
(ii) Tax impact primarily on charges related to the impacts of a U.S.-based work stoppage, partially offset by tax impact from insurance recoveries.
(iii) Tax benefit as a result of the movement of the Mexican peso against the U.S. dollar and its impact to the remeasurement of our Mexico financial statements during the period.
(iv) Tax impact from net prior year tax liabilities and contingencies, impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the above non-GAAP addbacks. These were offset by interest on previously recognized tax benefits for certain Brazilian local incentives which were previously taxable.

CONTACTS:
Investors:
Noah Weiss, 773-896-5242
Media: Becca Hary, 708-551-2602


GlobeNewswire Distribution ID 8973945

Matmerize secures DOD award to develop low-flammability polymer composite materials using advanced AI methods

ATLANTA, Nov. 07, 2023 (GLOBE NEWSWIRE) — Matmerize, Inc., an industry leader in Polymer & Formulations Informatics proudly announces its selection by the US Department of Defense (DOD) for a Small Business Innovation Research (SBIR) contract aimed at advancing AI methodologies for accelerating the design of novel low-flammability polymer composite materials. Matmerize is excited about the transformative potential of this project as it will not only enhance fire safety for Navy ships and submarines, but will also find applications in a wide range of industries, including construction, aerospace, automotive and consumer products. This award comes at the heels of another SBIR recently awarded to Matmerize by the National Science Foundation (NSF) to develop physics-informed and physics-enforced machine learning architectures to advance materials development.

The flammability of polymer composites is quantified by a set of quantitative parameters, typically measured using highly standardized instruments/tests defined by the American Society for Testing and Materials (ASTM) and other agencies. Desirable polymeric materials that meet the specific values of ASTM and non-ASTM standardized tests require an optimal combination of base polymers, functional additives, flame retardants, and processing conditions. Matmerize will collaborate with DOD to develop a Polymer Informatics capability using suitable curated data and advanced AI/ML techniques, aimed at the accelerated design of low-flammability polymer matrix composites that meet other critical mechanical and thermal performance targets needed by the Navy.

Key highlights of the contract include:

(1)  creation of a composite materials database with flammability and other relevant properties such as maximum heat release rate, time to ignition, and smoke density,
(2)   development of AI models trained on the database to predict the relevant properties for new composite formulations, and
(3)  recommend a pool of promising polymer composites, i.e., the combinations of base polymers, functional additives, flame retardants, and processing conditions, for experimentally synthesis and testing.

A Media Snippet accompanying this announcement is available by clicking on this link:

AI Custom Models for Low Flammability Polymer Composites: Creating AI Custom Models for Low Flammability Polymer Composites using Customer's Proprietary Data

Huan Tran, Director of Research Innovation for Matmerize stated, “This collaboration signifies a major achievement in the pursuit of safer, lower-flammability polymer composites. We take great pride in spearheading the development of cutting-edge AI-driven solutions for low-flammability composite materials that not only meet rigorous ASTM testing standards but also address the vital safety requirements mandated for our Navy ships.“

At the heart of Matmerize’s innovation lies PolymRize™, their flagship product – a cloud-based Polymer Informatics software platform meticulously crafted to expedite the advancement of polymers, composites, and formulations. The DOD SBIR aligns perfectly with Matmerize’s core mission to unlock the immense potential of AI in advanced materials engineering to address critical challenges and improve functionality, fire safety and sustainability. Both the DOD and the NSF SBIRs come at an opportune time and will jointly propel and advance the AI-based PolymRize™ technology in a synergistic manner.

Chiho Kim, CTO at Matmerize expressed his enthusiasm by stating “The two concurrent SBIR awards granted by DOD and NSF, represent a resounding endorsement of Matmerize’s pioneering Polymer Informatics platform PolymRize™. These contracts will provide us the resources and support needed to further advance our AI based PolymRize™ platform.”

For more information on the innovative PolymRize™ platform please visit: https://www.matmerize.com/polymrize

About Matmerize:
Matmerize, Inc. is a recent spin-out from the Georgia Institute of Technology and was founded by Dr. Rampi Ramprasad and Dr. Chiho Kim. Matmerize is a leading innovator at the intersection of advanced materials engineering and artificial intelligence. With a mission to revolutionize fire safety and sustainability through AI technology, we are committed to pushing the boundaries of what is possible. Our dedicated team of experts strives to create solutions that positively impact new material development while minimizing the environmental footprint.

For further information, inquiries, or media contact, please reach out to:

Matmerize, Inc.
https://www.matmerize.com
E: info@matmerize.com
Y: Watch Matmerize Videos on YouTube
L: Follow our LinkedIn Page

GlobeNewswire Distribution ID 8974273

Philips program developing AI-powered ultrasound to expand access to maternal health receives major funding boost

November 7, 2023

  • Total investment from the Bill & Melinda Gates Foundation reaches USD 60 million, accelerating expansion of new AI-guided ultrasound capabilities on Philips Lumify Handheld Ultrasound
  • Innovation helps address worldwide shortage of healthcare workers by putting diagnostic tool previously reserved for expert technicians in the hands of midwives

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced it has received a second round of funding from the Bill & Melinda Gates Foundation to accelerate global adoption of AI algorithms on Philips Lumify Handheld Ultrasound. By using AI to simplify key measurements to identify abnormalities during pregnancy, training time to use the ultrasound system can be reduced from weeks to just hours, hugely expanding the pool of frontline health workers who can learn to use the technology and integrate it into routine care.

Results since the Bill & Melinda Gates Foundation provided its first phase of grant funding in 2021 have shown a positive impact in Kenya where the technology has helped drive better-informed decision-making when triaging pregnant women in rural underserved communities. The new phase of funding will support the deployment of the AI-assisted tool to underserved communities globally.

Each day, nearly 800 women around the world die from preventable causes related to pregnancy and childbirth [1], with nearly 95% of all maternal deaths occurring in low- and lower-middle-income countries in 2020. Care provided by skilled health professionals before, during and after childbirth can help save the lives of women and newborns worldwide [1].

New AI-guided algorithms assist in risk-based triaging
The World Health Organization recommends at least one ultrasound scan before 24 weeks of gestation for pregnant women to evaluate gestational age and improve detection of fetal abnormalities with greater confidence [2]. With this latest development, Philips Lumify Handheld Ultrasound will be the first point-of-care ultrasound (POCUS) device to be introduced commercially to assist non-expert users by automating image acquisition or image interpretation for a comprehensive set of obstetrics measurements, increasing quality access to early fetal ultrasound scans.

“Ultrasound is the first tool of choice to scan pregnant women, but it also requires training to understand how to scan properly and correctly in order to make the right image interpretations,” said Jeff Cohen, General Manager of Ultrasound at Philips. “By supporting front-line healthcare workers such as midwives to identify potential problems in pregnancy at an early stage, we aim to significantly reduce the number of women who die because of pregnancy. During this next phase, working with the Bill & Melinda Gates Foundation, we will bring this innovation as a commercial offering to the market to help increase quality access to care and improve maternal health in underserved and rural communities in developed and developing countries worldwide.”

“One of our key areas of focus is to build partnerships that bring together resources, expertise, and vision – working with organizations around the world to identify issues, find answers, and drive change,” said Dr. Rasa Izadnegahdar, Director, Maternal, Newborn and Child Health Discovery & Tools at the Bill & Melinda Gates Foundation. “A critical goal of our work at the Bill & Melinda Gates Foundation is to bring health technology to underserved areas of the world to help prevent women from dying in childbirth – an issue that is critical in high-income countries like the US and UK as well.”

Prototype results show increased confidence for midwives
During a trial period in Kenya, feedback on the new tool has shown positive impact. Thanks to digitalization, informatics, and AI, interpretation of the images is not required by the operator. Weeks of training for midwives have been reduced to hours, without negatively affecting confidence in triage. Expectant moms also find it comforting to know how their baby is progressing. Depending on the results, patients can be referred to a credentialed sonographer for image review and further investigation if needed.

“With this disruptive technology, we are introducing a new way of ultrasound scanning where midwives and non-expert users are guided by the algorithm to give them access to critical information they need most when triaging pregnant women in underserved areas, and rural settings,” said Matthijs Groot Wassink, General Manager for Point of Care and Obstetric Ultrasound at Philips. “The prototype identifies six critical parameters for high-risk assessments to help improve the health of both mom and baby, such as gestational age and placenta location. With the automated AI capabilities built into Philips Lumify, frontline workers can identify abnormalities earlier, helping to increase confidence and comfort of the mother in any decisions or care pathways she decides to pursue or not.”

Philips’ leadership in Ultrasound worldwide
Philips Ultrasound systems installed around the world perform an estimated 1.33 billion diagnostic and interventional procedures each year. With this latest AI-enabled POCUS prototype, Philips continues its commitment to deliver industry-first innovations in areas such as 3D imaging of the heart, AI-powered quantification tools, and ultra-mobile portable ultrasound solutions. Visit Philips Ultrasound for more information on the latest innovations in cardiology, general imaging and point-of-care OB/GYN ultrasound solutions.

More information on the program can be found in this FAQ.

[1] https://www.who.int/news-room/fact-sheets/detail/maternal-mortality
[2] https://www.who.int/publications/i/item/9789241549912

For further information, please contact:

Kathy O’Reilly
Philips Global Press Office
Tel.: +1 978 221 8919
E-Mail: kathy.oreilly@philips.com

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and well-being through meaningful innovation. Philips’ patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring and enterprise informatics, as well as in personal health. Philips generated 2022 sales of EUR 17.8 billion and employs approximately 71,500 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

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GlobeNewswire Distribution ID 1000898088

Pacific Green Enters Into Transaction to Sell Its 249MW / 373.5MWh Sheaf Energy Park Battery Development for an Enterprise Value of £210 Million (US$258 Million)

Dover, DE, Nov. 07, 2023 (GLOBE NEWSWIRE) — Pacific Green Technologies, Inc. (“Pacific Green”, OTCQB: PGTK) announces that it has entered into a transaction to sell 100% of the shares in Pacific Green Battery Energy Parks 2 Limited (“PGBEP2”) to Sosteneo Fund 1 HoldCo S.à.r.l. (“Sosteneo HoldCo”) for £210 million (US$258 million) (the “Transaction”).

PGBEP2 is the holding company for 100% subsidiary, Sheaf Energy Limited, Pacific Green’s 249 MW / 373.5 MWh battery energy storage system in Kent, England (“Sheaf Energy Park”), which will begin commercial operations in July 2025.

Sosteneo HoldCo is an investment vehicle for the Sosteneo Energy Transition Fund, managed by Sosteneo SGR S.p.A. (“Sosteneo”), a specialist manager of greenfield infrastructure projects related to the energy transition and part of the Generali ecosystem of asset management firms.

Under the terms of the Transaction, Pacific Green and Sosteneo have granted each other respective options to buy or sell the shares in PGBEP2.

As part of the Transaction, Sosteneo will provide a capital expenditure loan, which together with the senior debt facility, will fully fund the development and construction of Sheaf Energy Park.

About Pacific Green Technologies, Inc.:

Pacific Green is focused on addressing the world’s need for cleaner and more sustainable energy. Pacific Green offers Battery Energy Storage Systems and Concentrated Solar Power to complement its environmental technologies division. Pacific Green has offices in the USA, Canada, United Kingdom, Australia, Saudi Arabia and China.

For more information, visit Pacific Green’s website:
www.pacificgreen.com

Notice Regarding Forward-Looking Statements:

This news release contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the continued development of Sheaf Energy Park, the continuation of the Transaction, any potential business developments and future interest in Pacific Green’s battery, solar and environmental technologies.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the continuation of the development of Sheaf Energy Park, the continuation of the Transaction and general economic and political conditions. These forward-looking statements are made as of the date of this news release, and Pacific Green assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although Pacific Green believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all the information set forth herein and should also refer to the risk factors disclosure outlined in Pacific Green’s annual report on Form 10-K for the most recent fiscal year, Pacific Green’s quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Scott Poulter, Chairman & CEO
Pacific Green Technologies
T: +1 (302) 601-4659

GlobeNewswire Distribution ID 8974156

CNH Industrial N.V. Reports Third Quarter 2023 Results

Q3 consolidated revenue and net income both increased by 2% year-over-year

Amid softer demand in certain product categories and South America, segments improved profitability by executing cost containment actions

Agriculture segment adjusted EBIT margin up 50 bps year-over-year to 15.3%, despite net sales declining by 3%

Construction segment adjusted EBIT margin up 360 bps year-over-year to 6.3%, with net sales increasing by 6%

Announcing immediate restructuring program to be followed by a thorough review of SG&A cost structure

Basildon, UK – November 7, 2023 – CNH Industrial N.V. (NYSE: CNHI / MI: CNHI) today reported results for the three months ended September 30, 2023 with net income of $570 million and diluted earnings per share of $0.42 compared with net income of $559 million and diluted earnings per share of $0.41 for the three months ended September 30, 2022. Consolidated revenues were $5.99 billion (up approximately 2% compared to Q3 2022) and Net sales for Industrial Activities were $5.33 billion (a decrease of approximately 1% compared to Q3 2022). Net cash provided by operating activities was $232 million and Industrial Free Cash Flow absorption was $127 million in Q3.

Financial results presented under U.S. GAAP

“CNH achieved record margins in our Agriculture and Construction segments, even as some markets began to soften. Balancing continued investments in iron and technology with aggressive cost containment positions us to maintain our full year adjusted EPS target of around $1.70 and demonstrate higher through-the-cycle margins. We will complement our continuous improvement initiatives with targeted restructuring to enhance operational efficiencies and optimize our organization. Our precision technology evolution is accelerating as we execute our longstanding plan to reduce our reliance on third parties. I would like to thank our employees and dealers for their unyielding commitment to ensuring CNH and its brands deliver for our customers.”

Scott W. Wine, Chief Executive Officer

2023 Third Quarter Results

(all amounts $ million, comparison vs Q3 2022 – unless otherwise stated)

US-GAAP
Q3 2023 Q3 2022 Change Change at c.c.(1)
Consolidated revenue 5,986 5,881 +2% —%
of which Net sales of Industrial Activities 5,332 5,396 (1)% (3)%
Net income 570 559 +2%
Diluted EPS $ 0.42 0.41 +0.01
Cash flow from operating activities 232 272 (40)
Cash and cash equivalents(2) 2,979 4,376 (1,397)
Gross profit margin of Industrial Activities 23.9% 23.0% +90 bps
NON-GAAP(3)
Q3 2023 Q3 2022 Change
Adjusted EBIT of Industrial Activities 657 670 (13)
Adjusted EBIT margin of Industrial Activities 12.3% 12.4% -10 bps
Adjusted net income 570 557 +13
Adjusted diluted EPS $ 0.42 0.41 +0.01
Free cash flow of Industrial Activities (127) 202 (329)

Net sales of Industrial Activities were $5.33 billion, a decrease of 1% when compared to the corresponding period from the previous year. This decline is mainly due to lower industry demand in Agriculture, especially in South America and in EMEA for combines. Pricing continued to be favorable for both Industrial segments, and Construction net sales grew by approximately 6%.

Net income was $570 million, with diluted earnings per share of $0.42 (net income of $559 million in Q3 2022, with diluted earnings per share of $0.41). In Q3 2023, the impact of adjusting items on net income and diluted earnings per share was neutral. In comparison, in Q3 2022, CNH Industrial N.V. reported adjusted net income of $557 million and adjusted diluted earnings per share of $0.41.

Gross profit margin of Industrial Activities was 23.9% (23.0% in Q3 2022) with improvement from the corresponding period from the previous year in both Agriculture and Construction, reflective of favorable price realization and of improving operating performance.

Reported income tax expense was $171 million ($192 million in Q3 2022), and effective tax rate (ETR) was 25.8% (26.3% in Q3 2022) with adjusted ETR(3) of 25.7% for the third quarter of 2023 (26.2% in Q3 2022).

Cash flow provided by operating activities in the quarter was $232 million ($272 million in Q3 2022). Free cash flow absorption of Industrial Activities was $127 million. Consolidated Debt was $25 billion as of September 30, 2023 ($23 billion at December 31, 2022).

The Company has initiated an immediate restructuring program targeting a 5% reduction in salaried workforce cost. This will be coupled with a comprehensive rightsizing of the Company’s cost structure to be implemented early next year. Between the immediate reductions this year and the additional actions next year, CNH expects a run rate reduction of 10-15% on total labor and non-labor SG&A expenses. The Company expects to incur restructuring charges of up to $200 million.

Agriculture
Q3 2023 Q3 2022 Change Change at c.c.(1)
Net sales ($ million) 4,384 4,501 (3)% (4)%
Adjusted EBIT ($ million) 672 666 +6
Adjusted EBIT margin 15.3% 14.8% +50 bps

In North America, industry volume was up 19% year over year in the third quarter for tractors over 140 HP and was down 7% for tractors under 140 HP; combines were down 4% from prior year. In EMEA, tractor and combine demand was up 4% and down 18%, respectively. Industry volume in Europe alone was down 7% for tractors and down 40% for combines. South America tractor demand was down 16% and combine demand was down 47%. Asia Pacific tractor demand was down 10% and combine demand was up 33%.

Agriculture net sales decreased for the quarter by 2.6% to $4.38 billion primarily as a result of lower industry volume, mainly in EMEA and South America partially offset by favorable mix in North America and continued price realization.

Gross profit margin was 25.6% (25.0% in Q3 2022) up 60 bps as a result of favorable price realization in all regions and diminishing production cost inflation.

Adjusted EBIT was $672 million ($666 million in Q3 2022), with Adjusted EBIT margin at 15.3% (14.8% in Q3 2022). The reduced volumes due to industry headwinds were compensated by better mix, higher gross margin, and slight reduction in SG&A expenses, while R&D investments continued growing and accounted for 5.5% of sales (4.3% in 2022). Income from unconsolidated subsidiaries increased $56 million in the quarter, primarily from our JV.

Construction
Q3 2023 Q3 2022 Change Change at c.c.(1)
Net sales ($ million) 948 895 +6% +4%
Adjusted EBIT ($ million) 60 24 +36
Adjusted EBIT margin 6.3% 2.7% +360 bps

Global industry volume for construction equipment was down 13% year over year in the third quarter for Heavy construction equipment; Light construction equipment was down 3% year over year. Aggregated demand increased 2% in North America, decreased 3% in EMEA, decreased 27% in South America and decreased 13% for Asia Pacific (excluding China, Asia Pacific markets decreased 1%).

Construction net sales increased for the quarter by 6% to $948 million, driven by favorable price realization and positive volume/mix mainly in North America, partially offset by lower net sales in other regions.

Gross profit margin was 15.9%, up 330 bps compared to Q3 2022, mainly due to favorable product mix and price realization.

Adjusted EBIT increased $36 million due to favorable product mix and price realization, while SG&A and R&D spend was flat year-over-year. Adjusted EBIT margin at 6.3% increased by 360 bps vs the same quarter of 2022.

Financial Services
Q3 2023 Q3 2022 Change Change at c.c.(1)
Revenue ($ million) 653 482 +35% +33%
Net income ($ million) 86 86
Equity at quarter-end ($ million) 2,610 2,207 +403
Retail loan originations ($ million) 3,043 2,478 +23%

Revenues increased 35% due to favorable volumes and higher base rates across all regions, partially offset by lower used equipment sales due to decreased operating lease maturities.

Net income was $86 million in the third quarter of 2023, flat compared to the same quarter of 2022, primarily due to favorable volumes in all regions, partially offset by margin compression in North America and higher risk costs.

The managed portfolio (including unconsolidated joint ventures) was $26.8 billion as of September 30, 2023 (of which retail was 65% and wholesale was 35%), up $5.6 billion compared to September 30, 2022 (up $4.7 billion on a constant currency basis).

At September 30, 2023, the receivables balance greater than 30 days past due as a percentage of receivables was 1.6% (1.3% as of September 30, 2022).

2023 Outlook

Given the softening of end market conditions, predominantly in South America, the Company is modifying the 2023 outlook for its Industrial Activities as follows:

  • Net sales(5) up between 3% and 6% year on year including currency translation effects
  • SG&A up no more than 5% vs 2022
  • Free Cash Flow of Industrial Activities(6) between $1.0bn and $1.2bn
  • R&D expenses and capital expenditures at around $1.6bn

Adjusted diluted EPS is targeted at about $1.70.

Results for the Nine Months Ended September 30, 2023

(all amounts $ million, comparison vs YTD Q3 2022 – unless otherwise stated)

US-GAAP
YTD Q3 2023 YTD Q3 2022 Change Change at c.c.(1)
Consolidated revenue 17,895 16,608 +8% +8%
of which Net sales of Industrial Activities 16,062 15,189 +6% +6%
Net income 1,766 1,447 +22%
Diluted EPS $ 1.30 1.06 +0.24
Cash flow from operating activities (608) (886) +278
Cash and cash equivalents(2) 2,979 4,376 (1,397)
Gross profit margin of Industrial Activities 24.5% 22.2% +230 bps
NON-GAAP(3)
YTD Q3 2023 YTD Q3 2022 Change
Adjusted EBIT of Industrial Activities 2,034 1,753 +281
Adjusted EBIT margin of Industrial Activities 12.7% 11.5% +120 bps
Adjusted net income 1,756 1,518 +238
Adjusted diluted EPS $ 1.29 1.11 +0.18
Free cash flow of Industrial Activities (414) (453) +39
Adjusted gross margin of Industrial Activities 24.5% 22.4% +210 bps
Agriculture
YTD Q3 2023 YTD Q3 2022 Change Change at c.c.(1)
Net sales 13,201 12,600 +5% +5%
Adjusted EBIT 2,063 1,755 +308
Adjusted EBIT margin 15.6% 13.9% +170 bps
Construction
YTD Q3 2023 YTD Q3 2022 Change Change at c.c.(1)
Net sales 2,861 2,589 11% +11%
Adjusted EBIT 176 90 +86
Adjusted EBIT margin 6.2% 3.5% +270 bps
Financial Services
YTD Q3 2023 YTD Q3 2022 Change Change at c.c.(1)
Revenue 1,805 1,419 +27% +27%
Net income 258 263 (5)

Notes

CNH Industrial reports quarterly and annual consolidated financial results under U.S. GAAP and EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP. EU-IFRS reports will be published on approximately November 8, 2023.

  1. c.c. means at constant currency.
  2. Comparison vs. December 31, 2022
  3. This item is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Information” section of this press release for information regarding non-GAAP financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-GAAP financial measure and the most comparable GAAP financial measure.
  4. Certain financial information in this report has been presented by geographic area. Our geographical regions are: (1) North America; (2) Europe, Middle East and Africa (“EMEA”); (3) South America and (4) Asia Pacific. The geographic designations have the following meanings:
    1. North America: United States, Canada, and Mexico;
    2. Europe, Middle East, and Africa: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Russia, Turkey, Uzbekistan, Pakistan, the African continent, and the Middle East;
    3. South America: Central and South America, and the Caribbean Islands; and
    4. Asia Pacific: Continental Asia (including the India subcontinent), Indonesia and Oceania.
  5. Net sales reflecting the exchange rate of 1.09 EUR/USD
  6. The Company is unable to provide this reconciliation without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Non-GAAP Financial Information

CNH Industrial monitors its operations through the use of several non-GAAP financial measures. CNH Industrial’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH Industrial’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.

CNH Industrial’s non-GAAP financial measures are defined as follows:

  • Adjusted EBIT of Industrial Activities under U.S. GAAP is defined as net income (loss) before the following items: Income taxes, Financial Services’ results, Industrial Activities’ interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
  • Adjusted EBIT Margin of Industrial Activities: is computed by dividing Adjusted EBIT of Industrial Activities by Net Sales of Industrial Activities.
  • Adjusted Net Income (Loss): is defined as net income (loss), less restructuring charges and non-recurring items, after tax.
  • Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH Industrial share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
  • Adjusted Income Tax (Expense) Benefit: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits.
  • Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates, less restructuring expenses and non-recurring items.
  • Adjusted Gross Profit Margin of Industrial Activities: is computed by dividing Net sales less Cost of goods sold, as adjusted by non-recurring items, by Net sales.
  • Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH Industrial provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities.
  • Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations.
  • Change excl. FX or Constant Currency: CNH Industrial discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations.

The tables attached to this press release provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

Controls and Procedures

We identified a material weakness in our internal control over financial reporting relating to IT controls in segregation of duties and user access limits in our enterprise resource planning (ERP) applications. This material weakness has not resulted in any error or misstatement in our previously published financial results. A material weakness involves a deficiency in internal control over financial reporting that creates a reasonable possibility that a material misstatement in financial statements may not be prevented or detected on a timely basis. The company is currently implementing measures to address the underlying causes of the material weakness.

Forward-looking Statements

All statements other than statements of historical fact contained in this press release including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward-looking statements also include statements regarding the future performance of CNH Industrial and its subsidiaries on a standalone basis. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”, or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.

Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: economic conditions in each of our markets, including the significant uncertainty caused by geopolitical events; production and supply chain disruptions, including industry capacity constraints, material availability, and global logistics delays and constraints; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities and material price increases; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; price pressure on new and used equipment; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH Industrial and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including pandemics (such as the COVID-19 pandemic), terrorist attacks in Europe and elsewhere; the remediation of a material weakness; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; including targeted restructuring actions to optimize our cost structure and improve the efficiency of our operations; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.

Forward-looking statements are based upon assumptions relating to the factors described in this press release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside CNH Industrial’s control. CNH Industrial expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based.

Further information concerning CNH Industrial, including factors that potentially could materially affect CNH Industrial’s financial results, is included in CNH Industrial’s reports and filings with the SEC, the Autoriteit Financiële Markten and Commissione Nazionale per le Società e la Borsa.

All future written and oral forward-looking statements by CNH Industrial or persons acting on the behalf of CNH Industrial are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.

Additional factors could cause actual results to differ from those express or implied by the forward-looking statements included in the Company’s filings with the SEC (including, but not limited to, the factors discussed in our 2022 Annual Report and subsequent quarterly reports).

Conference Call and Webcast

Today, at 3:30 p.m. CET / 2:30 p.m. GMT / 9:30 a.m. EST, management will hold a conference call to present third quarter 2023 results to financial analysts and institutional investors. The call can be followed live online at https://bit.ly/CNH_Industrial_Q3_2023 and a recording will be available later on the Company’s website www.cnhindustrial.com. A presentation will be made available on the CNH Industrial website prior to the conference call.

Basildon, UK, November 7, 2023

CONTACTS

Media Inquiries – Laura Overall Tel +44 207 925 1964 or Rebecca Fabian Tel +1 312 515 2249
(Email mediarelations@cnhind.com)

Investor Relations – Jason Omerza Tel +1 630 740 8079 or Federico Pavesi Tel +39 345 605 6218
(Email investor.relations@cnhind.com)

CNH INDUSTRIAL N.V.
Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022
(Unaudited, U.S. GAAP)

Three Months Ended
September 30,
Nine Months Ended
September 30,
($ million) 2023 2022 2023 2022
Revenues
Net sales 5,332 5,396 16,062 15,189
Finance, interest and other income 654 485 1,833 1,419
Total Revenues 5,986 5,881 17,895 16,608
Costs and Expenses
Cost of goods sold 4,059 4,156 12,133 11,819
Selling, general and administrative expenses 462 422 1,385 1,224
Research and development expenses 266 213 766 609
Restructuring expenses 5 11 8 19
Interest expense 346 190 941 490
Other, net 186 159 536 490
Total Costs and Expenses 5,324 5,151 15,769 14,651
Income (loss) of Consolidated Group before Income Taxes 662 730 2,126 1,957
Income tax (expense) benefit (171) (192) (536) (579)
Equity in income (loss) of unconsolidated subsidiaries and affiliates 79 21 176 69
Net Income (loss) 570 559 1,766 1,447
Net income attributable to noncontrolling interests 3 3 11 10
Net Income (loss) attributable to CNH Industrial N.V. 567 556 1,755 1,437
Earnings (loss) per share attributable to CNH Industrial N.V.
Basic 0.43 0.41 1.31 1.06
Diluted 0.42 0.41 1.30 1.06
Weighted average shares outstanding (in millions)
Basic 1,332 1,350 1,337 1,354
Diluted 1,351 1,355 1,355 1,359
Cash dividends declared per common share 0.396 0.302

These Consolidated Statements of Operations should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2022 included in the Annual Report on Form 10-K. These Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries.

CNH INDUSTRIAL N.V.
Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022
(Unaudited, U.S. GAAP)

($ million) September 30, 2023 December 31, 2022
Assets
Cash and cash equivalents 2,979 4,376
Restricted cash 706 753
Financing receivables, net 22,240 19,260
Receivables from Iveco Group N.V. 229 298
Inventories, net 6,447 4,811
Property, plant and equipment, net and equipment under operating lease 3,135 3,034
Intangible assets, net 4,727 4,451
Other receivables and assets 2,578 2,398
Total Assets 43,041 39,381
Liabilities and Equity
Debt 24,958 22,962
Payables to Iveco Group N.V. 76 156
Other payables and liabilities 9,892 9,287
Total Liabilities 34,926 32,405
Redeemable noncontrolling interest 58 49
Equity 8,057 6,927
Total Liabilities and Equity 43,041 39,381

These Consolidated Balance Sheets should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the year ended December 31, 2022 included in the Annual Report on Form 10-K. These Consolidated Balance Sheets represent the consolidation of all CNH Industrial N.V. subsidiaries.

CNH INDUSTRIAL N.V.
Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2023 and 2022
(Unaudited, U.S. GAAP)

Nine Months Ended September 30,
($ million) 2023 2022
Cash Flows from Operating Activities
Net income (loss) 1,766 1,447
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization expense excluding assets under operating lease 276 252
Depreciation and amortization expense of assets under operating lease 140 155
(Gain) loss from disposal of assets 21 22
Undistributed (income) loss of unconsolidated subsidiaries (125) (36)
Other non-cash items 136 130
Changes in operating assets and liabilities:
Provisions 618 (21)
Deferred income taxes (319) 83
Trade and financing receivables related to sales, net (1,602) (1,279)
Inventories, net (1,443) (1,121)
Trade payables (101) (120)
Other assets and liabilities 25 (398)
Net cash provided (used) by operating activities (608) (886)
Cash Flows from Investing Activities
Additions to retail receivables (5,689) (4,179)
Collections of retail receivables 4,308 3,342
Proceeds from sale of assets, net of assets sold under operating leases 1 25
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease (401) (245)
Expenditures for assets under operating lease (384) (368)
Other 123 (165)
Net cash provided (used) by investing activities (2,042) (1,590)
Cash Flows from Financing Activities
Net increase (decrease) in debt 1,962 1,334
Dividends paid (531) (416)
Other (224) (116)
Net cash provided (used) by financing activities 1,207 802
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (1) (357)
Net increase (decrease) in cash, cash equivalents and restricted cash (1,444) (2,031)
Cash, cash equivalents and restricted cash, beginning of year 5,129 5,845
Cash, cash equivalents and restricted cash, end of period 3,685 3,814

These Consolidated Statements of Cash Flow should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the year ended December 31, 2022 included in the Annual Report on Form 10-K. These Consolidated Statements of Cash Flows represent the consolidation of all CNH Industrial N.V. subsidiaries.

CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the Three Months Ended September 30, 2023 and 2022
(Unaudited, U.S. GAAP)

Three Months Ended September 30, 2023 Three Months Ended September 30, 2022
($ million) Industrial
Activities
(1)
Financial
Services
Eliminations Consolidated Industrial
Activities
(1)
Financial
Services
Eliminations Consolidated
Revenues
Net sales 5,332 5,332 5,396 5,396
Finance, interest and other income 49 653 (48) (2) 654 27 482 (24) (2) 485
Total Revenues 5,381 653 (48) 5,986 5,423 482 (24) 5,881
Costs and Expenses
Cost of goods sold 4,059 4,059 4,156 4,156
Selling, general and administrative expenses 398 64 462 377 45 422
Research and development expenses 266 266 213 213
Restructuring expenses 5 5 11 11
Interest expense 59 335 (48) (3) 346 54 160 (24) (3) 190
Other, net 47 139 186 (3) 162 159
Total Costs and Expenses 4,834 538 (48) 5,324 4,808 367 (24) 5,151
Income (loss) of Consolidated Group before Income Taxes 547 115 662 615 115 730
Income tax (expense) benefit (137) (34) (171) (160) (32) (192)
Equity in income (loss) of unconsolidated subsidiaries and affiliates 74 5 79 18 3 21
Net Income (loss) 484 86 570 473 86 559

(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) Elimination of Financial Services’ interest income earned from Industrial Activities.
(3) Elimination of Industrial Activities’ interest expense to Financial Services.

CNH INDUSTRIAL N.V.
Supplemental Statements of Operations for the
Nine Months Ended September 30, 2023 and 2022
(Unaudited, U.S. GAAP)

Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022
($ million) Industrial
Activities
(1)
Financial
Services
Eliminations Consolidated Industrial
Activities
(1)
Financial
Services
Eliminations Consolidated
Revenues
Net sales 16,062 16,062 15,189 15,189
Finance, interest and other income 153 1,805 (125) (2) 1,833 52 1,419 (52) (2) 1,419
Total Revenues 16,215 1,805 (125) 17,895 15,241 1,419 (52) 16,608
Costs and Expenses
Cost of goods sold 12,133 12,133 11,819 11,819
Selling, general and administrative expenses 1,219 166 1,385 1,087 137 1,224
Research and development expenses 766 766 609 609
Restructuring expenses 8 8 19 19
Interest expense 189 877 (125) (3) 941 149 393 (52) (3) 490
Other, net 109 427 536 (41) 531 490
Total Costs and Expenses 14,424 1,470 (125) 15,769 13,642 1,061 (52) 14,651
Income (loss) of Consolidated Group before Income Taxes 1,791 335 2,126 1,599 358 1,957
Income tax (expense) benefit (447) (89) (536) (473) (106) (579)
Equity in income (loss) of unconsolidated subsidiaries and affiliates 164 12 176 58 11 69
Net Income (loss) 1,508 258 1,766 1,184 263 1,447

(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) Elimination of Financial Services’ interest income earned from Industrial Activities.
(3) Elimination of Industrial Activities’ interest expense to Financial Services.

CNH INDUSTRIAL N.V.
Supplemental Balance Sheets as of September 30, 2023 and December 31, 2022
(Unaudited, U.S. GAAP)

September 30, 2023 December 31, 2022
($ million) Industrial
Activities
(1)
Financial
Services
Eliminations Consolidated Industrial

Activities(1)

Financial
Services
Eliminations Consolidated
Assets
Cash and cash equivalents 2,458 521 2,979 3,802 574 4,376
Restricted cash 150 556 706 158 595 753
Financing receivables, net 1,017 22,735 (1,512) (2) 22,240 898 19,313 (951) (2) 19,260
Receivables from Iveco Group N.V. 163 66 229 234 64 298
Inventories, net 6,428 19 6,447 4,798 13 4,811
Property, plant and equipment, net and equipment on operating lease 1,720 1,415 3,135 1,561 1,473 3,034
Intangible assets, net 4,563 164 4,727 4,287 164 4,451
Other receivables and assets 2,331 494 (247) (3) 2,578 2,141 477 (220) (3) 2,398
Total Assets 18,830 25,970 (1,759) 43,041 17,879 22,673 (1,171) 39,381
Liabilities and Equity
Debt 4,622 21,848 (1,512) (2) 24,958 4,972 18,941 (951) (2) 22,962
Payables to Iveco Group N.V. 4 72 76 5 151 156
Other payables and liabilities 8,699 1,440 (247) (3) 9,892 8,211 1,296 (220) (3) 9,287
Total Liabilities 13,325 23,360 (1,759) 34,926 13,188 20,388 (1,171) 32,405
Redeemable noncontrolling interest 58 58 49 49
Equity 5,447 2,610 8,057 4,642 2,285 6,927
Total Liabilities and Equity 18,830 25,970 (1,759) 43,041 17,879 22,673 (1,171) 39,381

(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) This item includes the elimination of receivables/payables between Industrial Activities and Financial Services.
(3) This item primarily represents the reclassification of deferred tax assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services.

Supplemental Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022 (Unaudited, U.S. GAAP)

Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022
($ million) Industrial
Activities
(1)
Financial
Services
Eliminations Consolidated Industrial
Activities
(1)
Financial
Services
Eliminations Consolidated
Cash Flows from Operating Activities
Net income (loss) 1,508 258 1,766 1,184 263 1,447
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization expense excluding assets under operating lease 273 3 276 250 2 252
Depreciation and amortization expense of assets under operating lease 6 134 140 2 153 155
(Gain) loss from disposal of assets, net 21 21 22 22
Undistributed (income) loss of unconsolidated subsidiaries (109) (12) (4) (2) (125) 90 (11) (115) (2) (36)
Other non-cash items, net 73 63 136 87 43 130
Changes in operating assets and liabilities:
Provisions 617 1 618 (21) (21)
Deferred income taxes (271) (48) (319) 130 (47) 83
Trade and financing receivables related to sales, net (25) (1,582) 5 (3) (1,602) 73 (1,352) (1,279)
Inventories, net (1,722) 279 (1,443) (1,498) 377 (1,121)
Trade payables (56) (40) (5) (3) (101) (71) (57) 8 (3) (120)
Other assets and liabilities (174) 199 25 (430) 40 (8) (3) (398)
Net cash provided (used) by operating activities 141 (745) (4) (608) (182) (589) (115) (886)
Cash Flows from Investing Activities
Additions to retail receivables (5,689) (5,689) (4,179) (4,179)
Collections of retail receivables 4,308 4,308 3,342 3,342
Proceeds from sale of assets excluding assets sold under operating leases 1 1 25 25
Expenditures for property, plant and equipment and intangible assets excluding assets under operating lease (397) (4) (401) (243) (2) (245)
Expenditures for assets under operating lease (26) (358) (384) (14) (354) (368)
Other 460 (441) 104 123 (424) 238 21 (165)
Net cash provided (used) by investing activities 38 (2,184) 104 (2,042) (656) (955) 21 (1,590)
Cash Flows from Financing Activities
Net increase (decrease) in debt (777) 2,739 1,962 61 1,273 1,334
Dividends paid (531) (4) 4 (2) (531) (416) (115) 115 (2) (416)
Other (224) 104 (104) (224) (116) 21 (21) (116)
Net cash provided (used) by financing activities (1,532) 2,839 (100) 1,207 (471) 1,179 94 802
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 1 (2) (1) (338) (19) (357)
Net increase (decrease) in cash and cash equivalents (1,352) (92) (1,444) (1,647) (384) (2,031)
Cash and cash equivalents, beginning of year 3,960 1,169 5,129 4,514 1,331 5,845
Cash and cash equivalents, end of period 2,608 1,077 3,685 2,867 947 3,814

(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture and Construction segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.
(2) This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash used in operating activities.
(3) This item includes the elimination of certain minor activities between Industrial Activities and Financial Services.

Other Supplemental Financial Information

(Unaudited)

Adjusted EBIT of Industrial Activities by Segment
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ million) 2023 2022 2023 2022
Industrial Activities segments
Agriculture 672 666 2,063 1,755
Construction 60 24 176 90
Unallocated items, eliminations and other (75) (20) (205) (92)
Total Adjusted EBIT of Industrial Activities 657 670 2,034 1,753
Reconciliation of Consolidated Net Income under U.S. GAAP to Adjusted EBIT of Industrial Activities
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ million) 2023 2022 2023 2022
Net Income 570 559 1,766 1,447
Less: Consolidated income tax expense (171) (192) (536) (579)
Consolidated income before taxes 741 751 2,302 2,026
Less: Financial Services
Financial Services Net Income 86 86 258 263
Financial Services Income Taxes 34 32 89 106
Add back of the following Industrial Activities items:
Interest expense of Industrial Activities, net of Interest income and eliminations 10 27 36 97
Foreign exchange (gains) losses, net of Industrial Activities 21 14 27 14
Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities (1) (35) (2) (112)
Adjustments for the following Industrial Activities items:
Restructuring expenses 5 11 8 19
Other discrete items(2) 20 10 78
Total Adjusted EBIT of Industrial Activities 657 670 2,034 1,753

(1) In the three and nine months ended September 30, 2023 and 2022, this item includes the pre-tax gain of $6 million and $18 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 modifications of a healthcare plan in the U.S. In the three and nine months ended September 30, 2022, this item includes the pre-tax gain of $30 million and $90 million as a result of the 2018 modification of a healthcare plan in the U.S.

(2) In the three months ended September 30, 2023, this item did not include any discrete items, while the three months ended September 30, 2022 included $14 million of costs related to the Raven segments held for sale and $7 million of spin off costs related to the Iveco Group business. The nine months ended September 30, 2023 included a loss of $23 million on the sale of the CNH Industrial Russia and CNH Capital Russia businesses, partially offset by a gain of $13 million for the fair value remeasurement of Augmenta and Bennamann. The nine months ended September 30, 2022 included $43 million of asset write-downs related to the Industrial Activities of our Russian Operations, $22 million of costs related to the Raven segments held for sale, and $13 million of spin off costs related to the Iveco Group business.

Other Supplemental Financial Information

(Unaudited)

Reconciliation of Total (Debt) to Net Cash (Debt) under U.S. GAAP
Consolidated Industrial Activities Financial Services
($ million) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022
Third party (debt) (24,958) (22,962) (4,117) (4,909) (20,841) (18,053)
Intersegment notes payable (505) (63) (1,007) (888)
Payable to Iveco Group N.V.(4) (76) (156) (4) (5) (72) (151)
Total (Debt)(1) (25,034) (23,118) (4,626) (4,977) (21,920) (19,092)
Cash and cash equivalents 2,979 4,376 2,458 3,802 521 574
Restricted cash 706 753 150 158 556 595
Intersegment notes receivable 1,007 888 505 63
Receivables from Iveco Group N.V.(4) 229 298 163 234 66 64
Other current financial assets(2) 300 300
Derivatives hedging debt (41) (43) (41) (43)
Net Cash (Debt)(3) (21,161) (17,434) (889) 362 (20,272) (17,796)

(1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $505 million and $63 million as of September 30, 2023 and December 31, 2022, respectively. Total (Debt) of Financial Services includes Intersegment notes payable to Industrial Activities of $(1,007) million and $(888) million as of September 30, 2023 and December 31, 2022, respectively
(2) This item includes short-term deposits and investments towards high-credit rating counterparties.
(3) The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $(502) million and $(825) million as of September 30, 2023 and December 31, 2022, respectively.

Reconciliation of Net Cash Provided (Used) by Operating Activities to Free Cash Flow of Industrial Activities under U.S. GAAP
Nine Months Ended
September 30,
Three Months Ended
September 30,
2023 2022 ($ million) 2023 2022
(608) (886) Net cash provided (used) by Operating Activities 232 272
749 704 Cash flows from Operating Activities of Financial Services, net of eliminations (141) 27
2 17 Change in derivatives hedging debt of Industrial Activities and other (2) 46
(26) (14) Investments in assets sold under operating lease assets of Industrial Activities (17) (8)
(397) (243) Investments in property, plant and equipment, and intangible assets of Industrial Activities (176) (106)
(134) (31) Other changes(1) (23) (29)
(414) (453) Free cash flow of Industrial Activities (127) 202

(1) This item primarily includes capital increases in intersegment investments and change in financial receivables.

Other Supplemental Financial Information

(Unaudited)

Reconciliation of Adjusted Net Income and Adjusted Income Tax (Expense) Benefit to Net Income (Loss) and Income Tax (Expense) Benefit and Calculation of Adjusted Diluted EPS and Adjusted ETR under U.S. GAAP
Nine Months Ended
September 30,
Three Months Ended
September 30,
2023 2022 ($ million) 2023 2022
1,766 1,447 Net income (loss) 570 559
5 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) (1) (4)
(10) 66 Adjustments impacting Income tax (expense) benefit (b) 1 2
1,756 1,518 Adjusted net income (loss) 570 557
1,745 1,508 Adjusted net income (loss) attributable to CNH Industrial N.V. 567 554
1,355 1,359 Weighted average shares outstanding – diluted (million) 1,351 1,355
1.29 1.11 Adjusted diluted EPS ($) 0.42 0.41
2,126 1,957 Income (loss) of Consolidated Group before income tax (expense) benefit 662 730
5 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) (1) (4)
2,126 1,962 Adjusted income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (A) 661 726
(536) (579) Income tax (expense) benefit (171) (192)
(10) 66 Adjustments impacting Income tax (expense) benefit (b) 1 2
(546) (513) Adjusted income tax (expense) benefit (B) (170) (190)
25.7% 26.1% Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) 25.7% 26.2%
a) Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates
8 19 Restructuring expenses 5 11
(90) Pre-tax gain related to the 2018 modification of a healthcare plan in the U.S. (30)
(18) (18) Pre-tax gain related to the 2021 modification of a healthcare plan in the U.S. (6) (6)
43 Asset write-down: Industrial Activities, Russia Operations (1)
16 Asset write-down: Financial Services, Russia Operations 1
17 Loss on sale of Industrial Activities, Russia Operations
6 Loss on sale of Financial Services, Russia Operations
13 Spin related costs 7
(13) Investment fair value adjustments
22 Activity of the Raven Segments held for sale, including loss on sale of the Aerostar and Engineered Films Division 14
5 Total (1) (4)
b) Adjustments impacting Income tax (expense) benefit
(10) 66 Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates 1 5
Adjustment to valuation allowances on deferred tax assets (3)
(10) 66 Total 1 2

Other Supplemental Financial Information
(Unaudited)

Reconciliation of Adjusted Gross Profit to Gross Profit under U.S. GAAP
Nine Months Ended
September 30,
Three Months Ended
September 30,
2023 2022 ($ million) 2023 2022
16,062 15,189 Net Sales (A) 5,332 5,396
12,133 11,819 Cost of goods sold 4,059 4,156
3,929 3,370 Gross profit (B) 1,273 1,240
34 Asset write down (Russia operations)
3,929 3,404 Adjusted gross profit (C) 1,273 1,240
24.5% 22.2% Gross profit margin (B ÷ A) 23.9% 23.0%
24.5% 22.4% Adjusted gross profit margin (C ÷ A) 23.9% 23.0%

 

Attachment


GlobeNewswire Distribution ID 1000898077

Acronis Helps Managed Service Providers Grow by Introducing MSP Academy

Acronis MSP Academy is a comprehensive training program designed for managed service providers, covering business operations, technology, sales, and marketing

Acronis MSP Academy is a comprehensive training program

Acronis Helps Managed Service Providers Grow by Introducing MSP Academy

SCHAFFHAUSEN, Switzerland, Nov. 07, 2023 (GLOBE NEWSWIRE) — Acronis, a global leader in cyber protection, today announced the launch of MSP Academy, an educational initiative aimed to provide managed service providers (MSPs) with business and technological knowledge, skills, and tools necessary to excel and grow. The MSP Academy launch represents a significant expansion of Acronis’ educational offerings, delivering on the commitment of Acronis to support the development of the global MSP market.

Acronis has offered extensive technology and business training on Acronis products for service providers for over ten years through Acronis Academy. Acronis partners that went through training and certification through the Academy in 2022 saw a 60% increase in revenue from Acronis product sales and a reduction in support incidents by 40%. In response to partner requests to expand the training portfolio beyond product training, Acronis delivered MSP Academy.

MSP Academy is a learning platform created to address key challenges MSPs face. It covers various topics, from starting an MSP, running a successful MSP business, marketing an MSP business, and optimizing the efficiency and productivity of MSP technicians.

“MSP Academy offers a customized education experience, allowing learners to explore specific topics or follow a structured learning path,” said Jon McCarrick, Director of Evangelism at Acronis. “The rapidly evolving technology and business landscape requires ongoing learning, and MSP Academy is designed to support the growing needs of MSPs.”

MSP Academy’s curriculum is crafted to offer training covering all aspects of managing an MSP business. With content structured to cater to the fast-paced changes of technology, bite-sized modules ranging from three to seven minutes are available to deliver impactful insights. Participants can take an exam to receive a Credly badge to share with peers and customers, showing their qualifications and commitment to continuous learning by earning a degree from the MSP Academy.

Upcoming initiatives from Acronis include delivering hybrid boot camps in collaboration with cloud distributors, providing an immersive learning experience to keep learners at the forefront of industry advancements, and launching new online, hybrid, and offline multilingual training options, ensuring that MSPs across the world can benefit from the program.

For more information on MSP Academy, visit https://acronis.events/event/msp-academy-start-a-successful-msp-business/.

If you’re interested in exploring the full scope of educational opportunities from Acronis Academy, visit: https://www.acronis.com/en-us/academy/.

About Acronis:
Acronis unifies data protection and cybersecurity to deliver integrated, automated cyber protection that solves the safety, accessibility, privacy, authenticity, and security (SAPAS) challenges of the modern digital world. With flexible deployment models that fit the demands of service providers and IT professionals, Acronis provides superior cyber protection for data, applications, and systems with innovative next-generation antivirus, backup, disaster recovery, and endpoint protection management solutions powered by AI. With advanced anti-malware powered by cutting-edge machine intelligence and blockchain based data authentication technologies, Acronis protects any environment – from cloud to hybrid to on premises – at a low and predictable cost.

Acronis is a Swiss company, founded in Singapore. Celebrating two decades of innovation, Acronis has more than 2,000 employees in 45 locations. Acronis Cyber Protect solution is available in 26 languages in over 150 countries and is used by 20,000 service providers to protect over 750,000 businesses.

Media Contacts:
Karl Bateson
Karl.Bateson@acronis.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a1e89ab5-a217-411f-ae4f-be74e80674e4.

GlobeNewswire Distribution ID 8973742