And finally, in this – a lot of the speculation about some certain announces made about our major shareholder dealing with the CNH listed position, I mean that’s really a question that we would defer to our Industrial Call which is scheduled later today, it’s not the matter for CNH to address that particular subject.
Overall, quite pleased with the performance of the quarter, I think that both commercial operations in terms of volume and price realization have done as expected and industrially the performance has been quite good as you can see by the amount of output and the beneficiary of the industrial absorption that we realized during the quarter.
With that, I’ll hand it over to Camillo and he’ll take us through the bulk of the financial presentation.
Camillo RossottoThanks Rich, good morning everybody. Starting on slide four, as you’ve seen from our earlier this morning, revenues were up 22% during the quarter, $4.6 billion, $3.6 billion of Ag business and $1 billion of construction equipment. The equipment operation operating profit is up $160 million to $406 million in the quarter, that’s a 65% increase and the margin is now at 8.8%, 2.3 percentage points above same quarter last year. The Ag business has achieved double digit profitability in the quarter at 10.3% and we recorded 19% incremental margin versus last year. The equipment operation net cash of $2.2 billion is down $400 million from where it was at year end, and that’s basically driven by seasonal working capital changes that we will comment on when we get to that part of the presentation. Net income $269 million, that’s $1.11 per share diluted before restructuring that compared to $0.63 and $0.57 respectively in the same quarter for over last year. Slide five, I think the only highlights here which I would like to underline is the favorable performance of not only the equipment operation but also financial services where net income was up 35% versus Q1 of the last year, about $19 million on the back of better cost of funding and portfolio performance. Read the rest of this transcript for free on seekingalpha.com