Daily Archives: February 7, 2020

2019 Fourth Quarter and Full Year Results

The following is an extract from the “CNH Industrial 2019 fourth quarter and full year results” press release. The complete press release can be accessed by visiting the media section of the CNH Industrial corporate website: https://www.cnhindustrial.com/en-us/media/press_releases/Pages/default.aspx or consulting the accompanying PDF:

CNH Industrial reports 2019 Consolidated revenues of $28.1 billion,
Net income of $1,454 million and Adjusted net income of $1,178 million (or $0.84 per share).
Net debt of Industrial Activities at $854 million

Financial results presented under U.S. GAAP

CONSOLIDATED RESULTS

  • Consolidated revenues of $28.1 billion in 2019, down 6% year-over-year on reported basis and down 2% at constant currency
  • Net income of $1,454 million in 2019, up $355 million compared to 2018, after $274 million of pre-tax charges ($222 million after-tax) related to the “Transform2Win” strategy, and the positive impact of a previously announced $539 million discrete tax benefit recognized in the third quarter
  • Adjusted net income of $1,178 million, up $61 million (up 5%) compared to 2018
  • Adjusted diluted earnings per share of $0.84, up 5% compared to 2018
  • Total of $332 million returned to shareholders in 2019 through cash dividends and share buy-back
  • Recommended annual cash dividend of €0.18 (or $0.20) per common share flat to 2019

INDUSTRIAL ACTIVITIES

  • Net sales of $26.1 billion in 2019, down 6% compared to 2018 (down 2% on a constant currency basis), as lower sales volume due to weak industry demand and dealer inventory reduction actions in our Agriculture and Construction segments more than offset positive price realization across the business
  • Adjusted EBIT of $1,390 million in 2019, representing a 5.3% margin, down 40 basis points compared to 2018, mainly due to unfavorable volume and mix as well as raw material headwinds, which more than offset positive pricing and cost management actions
  • Net debt at December 31, 2019 of $854 million, up by $255 million from December 31, 2018, due to higher working capital and cash investments related to the M&A activity performed during the year

FULL YEAR 2020 GUIDANCE

  • Net sales of Industrial Activities in constant currency flat to slightly down versus 2019
  • Adjusted diluted EPS between $0.78 and $0.86
  • Free cash flow of Industrial Activities between $400 million and $600 million

Attachment

Specter of Runaway Virus Outbreak Strains China’s Relations Around Asia

TAIPEI, TAIWAN – Asian governments with historically tense relations with China, from Japan to Vietnam, are facing domestic pressures to take more measures against the deadly new coronavirus amid fears the Asian superpower might handle the outbreak irresponsibly.

Suspicions that Chinese officials are underreporting coronavirus cases to ensure social stability particularly carry weight in neighboring countries hoping to contain their own outbreaks among people who have entered from China, political analysts say. Most cases worldwide remain in China, where the disease was discovered in December in the central city of Wuhan. The virus has reached six other Asian countries.

Maritime disputes, competing sovereignty claims and issues left over from World War II add to suspicion of China, challenging Asian governments to address the fears of their citizens, analysts say.

If you’re optimistic, then you’ll think China will try to modify its policy toward other countries, said Alex Chiang, associate professor of international politics at National Chengchi University in Taipei. It would be less assertive and maybe more accommodative of other countries’ interests,” he added.

However, he said, If China continues its behavior in the past, I think there will be more friction in the future.

Past behavior refers largely to the 2003 outbreak in China of SARS, or severe acute respiratory syndrome. Chinese officials initially reported low numbers despite widespread unofficial reports of a soaring caseload. In Wuhan last month, following the country’s first local health statement on the coronavirus, police detained eight people suspected of spreading rumors.

Accurate information key

Neighboring countries want the truth so they can calibrate travel restrictions that are neither too light nor too draconian, analysts in the region say. Light controls could result in overwhelmed local health care if Chinese arrivals bring in the virus, whereas stronger restrictions threaten trade and tourism relations with Asia’s biggest economy.

Social media has been putting out alternative stories to the official line that there are only such-and-such number of cases, about how there’s actually more than the reported number of cases, said Ibrahim Suffian, program director with Merdeka Center, a polling organization in Malaysia, a major winter destination for Chinese tourists.

Certainly there is always a twinge of doubt about veracity of data coming from China officials, he said.

No more tiptoeing

Japan waited until after the Lunar New Year holiday in late January to step up controls against Chinese arrivals as it tried to be polite before an expected visit by Chinese President Xi Jinping, said Jeffrey Kingston, history instructor at Temple University’s Japan campus. However, a longer outbreak could curtail participation in Tokyo’s 2020 Summer Olympics, some officials fear.

I think everyone is sort of tiptoeing, Kingston said.

Now there is more vetting and they’re asking where people are coming from and they are putting passengers that show symptoms into quarantine, and they are restricting entry to people from Wuhan, but the government has come under a lot of pressure from people in the Diet claiming that it’s too little too late, he said, referring to Japan’s legislature.

Japan and China struggle to get along because of World War II issues led by Beijing’s perception that Tokyo has not adequately apologized for invading Chinese territory.

In Vietnam, immigration agents at remote border crossings with China are denying entry to people with any China visa history in their passports, although it’s against official policy, business consultancy Dezan Shira and Associates said in a research note Feb. 6. Vietnam has reported 10 coronavirus cases. Vietnam separately spars with China over maritime sovereignty and the two fought a border war in the 1970s.

No Sinophobia

In the Philippines, President Rodrigo Duterte asked citizens Monday to stop this Sinophobia thing after his country reported the first coronavirus death outside China, the Manila Bulletin reported.

Many Filipinos resent Beijing for having challenged Manila’s tiny land holdings in the South China Sea since 2012. One reader comment on the domestic news website Inquirer.net called it ok to err on the side of caution (a.k.a. Sinophobia).

Duterte surprised Filipinos in 2016 by forging a friendship with China. Citizens are pushing the Duterte government to be tougher now as Chinese nationals come increasingly for work and tourism, said Maria Ela Atienza, political science professor at the University of the Philippines Diliman.

With the virus spreading, she said, some people are trying to connect these issues.

Taiwan and WHO

In Taiwan, about half of all people in the capital, Taipei, wear face masks outdoors despite official guidance to save the scarce supply for crowded places. Sixteen people have fallen sick in Taiwan, and mask wearers say they’re worried about an unforeseen spike in cases. Taiwan officials have renewed calls this month to participate in the World Health Organization, which is helping to control the global outbreak, despite China’s refusal to let it in.

China claims sovereignty over self-ruled Taiwan and uses its global diplomatic clout to stop it from joining international organizations.

Source: Voice of America

Specter of Runaway Virus Outbreak Strains China’s Relations Around Asia

TAIPEI, TAIWAN – Asian governments with historically tense relations with China, from Japan to Vietnam, are facing domestic pressures to take more measures against the deadly new coronavirus amid fears the Asian superpower might handle the outbreak irresponsibly.

Suspicions that Chinese officials are underreporting coronavirus cases to ensure social stability particularly carry weight in neighboring countries hoping to contain their own outbreaks among people who have entered from China, political analysts say. Most cases worldwide remain in China, where the disease was discovered in December in the central city of Wuhan. The virus has reached six other Asian countries.

Maritime disputes, competing sovereignty claims and issues left over from World War II add to suspicion of China, challenging Asian governments to address the fears of their citizens, analysts say.

If you’re optimistic, then you’ll think China will try to modify its policy toward other countries, said Alex Chiang, associate professor of international politics at National Chengchi University in Taipei. It would be less assertive and maybe more accommodative of other countries’ interests,” he added.

However, he said, If China continues its behavior in the past, I think there will be more friction in the future.

Past behavior refers largely to the 2003 outbreak in China of SARS, or severe acute respiratory syndrome. Chinese officials initially reported low numbers despite widespread unofficial reports of a soaring caseload. In Wuhan last month, following the country’s first local health statement on the coronavirus, police detained eight people suspected of spreading rumors.

Accurate information key

Neighboring countries want the truth so they can calibrate travel restrictions that are neither too light nor too draconian, analysts in the region say. Light controls could result in overwhelmed local health care if Chinese arrivals bring in the virus, whereas stronger restrictions threaten trade and tourism relations with Asia’s biggest economy.

Social media has been putting out alternative stories to the official line that there are only such-and-such number of cases, about how there’s actually more than the reported number of cases, said Ibrahim Suffian, program director with Merdeka Center, a polling organization in Malaysia, a major winter destination for Chinese tourists.

Certainly there is always a twinge of doubt about veracity of data coming from China officials, he said.

No more tiptoeing

Japan waited until after the Lunar New Year holiday in late January to step up controls against Chinese arrivals as it tried to be polite before an expected visit by Chinese President Xi Jinping, said Jeffrey Kingston, history instructor at Temple University’s Japan campus. However, a longer outbreak could curtail participation in Tokyo’s 2020 Summer Olympics, some officials fear.

I think everyone is sort of tiptoeing, Kingston said.

Now there is more vetting and they’re asking where people are coming from and they are putting passengers that show symptoms into quarantine, and they are restricting entry to people from Wuhan, but the government has come under a lot of pressure from people in the Diet claiming that it’s too little too late, he said, referring to Japan’s legislature.

Japan and China struggle to get along because of World War II issues led by Beijing’s perception that Tokyo has not adequately apologized for invading Chinese territory.

In Vietnam, immigration agents at remote border crossings with China are denying entry to people with any China visa history in their passports, although it’s against official policy, business consultancy Dezan Shira and Associates said in a research note Feb. 6. Vietnam has reported 10 coronavirus cases. Vietnam separately spars with China over maritime sovereignty and the two fought a border war in the 1970s.

No Sinophobia

In the Philippines, President Rodrigo Duterte asked citizens Monday to stop this Sinophobia thing after his country reported the first coronavirus death outside China, the Manila Bulletin reported.

Many Filipinos resent Beijing for having challenged Manila’s tiny land holdings in the South China Sea since 2012. One reader comment on the domestic news website Inquirer.net called it ok to err on the side of caution (a.k.a. Sinophobia).

Duterte surprised Filipinos in 2016 by forging a friendship with China. Citizens are pushing the Duterte government to be tougher now as Chinese nationals come increasingly for work and tourism, said Maria Ela Atienza, political science professor at the University of the Philippines Diliman.

With the virus spreading, she said, some people are trying to connect these issues.

Taiwan and WHO

In Taiwan, about half of all people in the capital, Taipei, wear face masks outdoors despite official guidance to save the scarce supply for crowded places. Sixteen people have fallen sick in Taiwan, and mask wearers say they’re worried about an unforeseen spike in cases. Taiwan officials have renewed calls this month to participate in the World Health Organization, which is helping to control the global outbreak, despite China’s refusal to let it in.

China claims sovereignty over self-ruled Taiwan and uses its global diplomatic clout to stop it from joining international organizations.

Source: Voice of America

Myanmar Officials, Ethnic Leaders Monitor China Border for Coronavirus

Intent on preventing an outbreak of the coronavirus in Myanmar, local officials and members of ethnic armed organizations, or EAOs, along the border with China have imposed travel restrictions, increased health checks, called for monitoring of Chinese workers and, in some areas, imposed fines.

The border area � known for its rugged terrain beyond the government’s control, enterprising smugglers, and long-simmering ethnic wars � concerns health authorities due to lax checkpoint controls.

The measures in Myanmar by both the government and EAOs are being enacted as the number of deaths continue to increase in China, where coronavirus 2019-nCoV was first identified in Wuhan, the capital of Hubei province.

According to the government, there are no confirmed cases or deaths in Myanmar. However, the swift spread of the not fully understood virus has alarmed many, leaving officials to quell rumors born of fear and long-held anti-Chinese sentiment.

Zaw Win, the social affairs minister of Myanmar’s Sagaing region, told VOA Burmese on Thursday he had to contain widespread rumors of a coronavirus outbreak at a copper mine. That meant educating people that 34 Chinese workers there were under observation, not in quarantine. Health workers reported none of the Chinese mine workers had fevers, and none had been in Wuhan in the past 14 days.

The U.S. Centers for Disease Control and Prevention, or CDC, believes that symptoms of 2019-nCoV may appear in a person as few as two days or as long as 14 days after exposure to someone infected with the virus.

Win Htay, the Myanmar labor team leader at the Chinese-owned mine, Myanmar Yang Tse Copper Limited, told VOA on Thursday that 300 workers on his team decided to stay away and not share the job site with Chinese workers who might be contagious. The Myanmar workers also wanted assurances from the company that there was no truth to the rumor that a Chinese worker had died of the virus.

Dr. Thein Myo, chief health department officer in the Wynemaw district near the border with China, told VOA Burmese, “Kachin state health workers are on high alert to monitor incoming Chinese for not only 14 days, but also closely watching the Chinese community.”

Dr. Myint Kyaw, the health department chief of eastern Shan state, told VOA Burmese, “All health workers in my jurisdiction [are] to follow WHO (World Health Organization) guidelines to monitor Chinese entering to Myanmar and report back.” WHO guidelines for prevention include the instruction to wash hands frequently.

The containment effort includes a public awareness campaign launched by the KIA-Kachin Armed Group, one of the largest anti-government EAOs.

Colonel Naw Bu, its spokesperson, told VOA the EAO was also monitoring people passing through the territory it controls along the border with China.

“There are no suspected cases in our territory, not even people with similar symptoms,” he said. “We follow WHO guidelines for public awareness. For example, use a mask, do not hold public assemblies, take care of personal hygiene. We use multi-media � TV, radio and social media � to advocate to the public to be aware of coronavirus.”

U Nyi Yang, spokesman for the United Wa State Party (UWSA)-Wa Autonomous Region, posted on Facebook earlier this week that the EAO had deployed health workers at checkpoints along the border with China.

Officials in the Shan state regions controlled by the EAO, the Myanmar National Democratic Alliance Army (MNDAA), and in the Mong Lar Special Region, both areas outside control of the Myanmar government, imposed travel restrictions and banned the trade in wildlife along the border with China. Early in the outbreak, many patients in Wuhan had some link to a large seafood and live animal market selling wild animals. That suggested the coronavirus spread from animals to people, but person-to-person transmission has since been reported, according to the CDC.

A statement from officials in Myanmar’s autonomous Mong Lar Special Region in Shan state said that travelers without health certificates would be fined from $28,565 to $71,412 and detained for 30 days.

Source: Voice of America

Myanmar Officials, Ethnic Leaders Monitor China Border for Coronavirus

Intent on preventing an outbreak of the coronavirus in Myanmar, local officials and members of ethnic armed organizations, or EAOs, along the border with China have imposed travel restrictions, increased health checks, called for monitoring of Chinese workers and, in some areas, imposed fines.

The border area � known for its rugged terrain beyond the government’s control, enterprising smugglers, and long-simmering ethnic wars � concerns health authorities due to lax checkpoint controls.

The measures in Myanmar by both the government and EAOs are being enacted as the number of deaths continue to increase in China, where coronavirus 2019-nCoV was first identified in Wuhan, the capital of Hubei province.

According to the government, there are no confirmed cases or deaths in Myanmar. However, the swift spread of the not fully understood virus has alarmed many, leaving officials to quell rumors born of fear and long-held anti-Chinese sentiment.

Zaw Win, the social affairs minister of Myanmar’s Sagaing region, told VOA Burmese on Thursday he had to contain widespread rumors of a coronavirus outbreak at a copper mine. That meant educating people that 34 Chinese workers there were under observation, not in quarantine. Health workers reported none of the Chinese mine workers had fevers, and none had been in Wuhan in the past 14 days.

The U.S. Centers for Disease Control and Prevention, or CDC, believes that symptoms of 2019-nCoV may appear in a person as few as two days or as long as 14 days after exposure to someone infected with the virus.

Win Htay, the Myanmar labor team leader at the Chinese-owned mine, Myanmar Yang Tse Copper Limited, told VOA on Thursday that 300 workers on his team decided to stay away and not share the job site with Chinese workers who might be contagious. The Myanmar workers also wanted assurances from the company that there was no truth to the rumor that a Chinese worker had died of the virus.

Dr. Thein Myo, chief health department officer in the Wynemaw district near the border with China, told VOA Burmese, “Kachin state health workers are on high alert to monitor incoming Chinese for not only 14 days, but also closely watching the Chinese community.”

Dr. Myint Kyaw, the health department chief of eastern Shan state, told VOA Burmese, “All health workers in my jurisdiction [are] to follow WHO (World Health Organization) guidelines to monitor Chinese entering to Myanmar and report back.” WHO guidelines for prevention include the instruction to wash hands frequently.

The containment effort includes a public awareness campaign launched by the KIA-Kachin Armed Group, one of the largest anti-government EAOs.

Colonel Naw Bu, its spokesperson, told VOA the EAO was also monitoring people passing through the territory it controls along the border with China.

“There are no suspected cases in our territory, not even people with similar symptoms,” he said. “We follow WHO guidelines for public awareness. For example, use a mask, do not hold public assemblies, take care of personal hygiene. We use multi-media � TV, radio and social media � to advocate to the public to be aware of coronavirus.”

U Nyi Yang, spokesman for the United Wa State Party (UWSA)-Wa Autonomous Region, posted on Facebook earlier this week that the EAO had deployed health workers at checkpoints along the border with China.

Officials in the Shan state regions controlled by the EAO, the Myanmar National Democratic Alliance Army (MNDAA), and in the Mong Lar Special Region, both areas outside control of the Myanmar government, imposed travel restrictions and banned the trade in wildlife along the border with China. Early in the outbreak, many patients in Wuhan had some link to a large seafood and live animal market selling wild animals. That suggested the coronavirus spread from animals to people, but person-to-person transmission has since been reported, according to the CDC.

A statement from officials in Myanmar’s autonomous Mong Lar Special Region in Shan state said that travelers without health certificates would be fined from $28,565 to $71,412 and detained for 30 days.

Source: Voice of America

JAPAN’S FRIENDSHIP TIES PROGRAMS JENESYS 2019 ASEAN INBOUND PROGRAM 23RD BATCH

131 university students who will be a future leader from ASEAN countries (Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) and Timor-Leste, are scheduled to visit Japan from February 9th to 18th, 2020 as part of the Japan’s Friendship Ties Programs, JENESYS 2019 promoted by Ministry of Foreign Affairs of Japan (MOFA).

In the Program, the participants are divided into 5 groups based on the theme of common issues in Japan and Asia, such as Over tourism and sustainable tourism development Foreign Workers Quality education Food loss Awareness of disaster mitigation. They will visit Tokyo, Kyoto, Aichi, Osaka, Miyagi prefecture respectively, under the common theme of What the Youths in Southeast Asia countries can do for the peace and stability, and have lectures, fours of theme related facilities, opinion exchange related to each themes. They will also exchange opinions to find solutions and improvement plans of the issues, as well as to think how they can contribute to Asia and Japanese society and deepen the mutual understanding among students. On an equal footing, the participants aim to create, sustain, and realize the collaborativeness network to slave social challenges. Furthermore, by visiting local areas, they will experience traditional cultures to deepen the understanding of culture, traditions, and life styles of Japan.

Through the program, we hope the friendly relationship among Japan, ASEAN countries and Timor-Leste will be strengthened, and the participants proactively share the attractiveness of Japan which they experienced in Japan after returning to their home country.

[For reference] Japan’s Friendship Ties Programs JENESYS 2019

People with the ability and future mission to deliver messages between Japan and the countries and regions of Asia and Oceania are invited and dispatched in order to promote an understanding of Japan with regard to politics, economics, society, culture, history, foreign policy, and the like, and pro-Japanese people and experts on Japan are discovered in order to strengthen Japan’s message to other countries and expand Japan’s diplomatic foundation by having the guests and dispatches take the initiative to spread information about the diplomatic stance, appeals, and other facets of Japan.

Source: NAM News Network