CNH Industrial forecasts growth for its Construction Equipment business in 2014

CNH Industrial is forecasting improved performance from its Construction Equipment business in 2014 after the overall Group recorded net revenues of €25.8 billion in 2013 – up 4.3% on a constant currency basis on 2012 revenues. Revenues from the Construction Equipment and Agricultural businesses, the former including the globally renowned Case and New Holland brands, were in line with 2012 at €16.006 billion. On a constant currency basis, revenues from Construction Equipment-Agricultural increased by €759
January 31, 2014 Read time: 2 mins
CNH is looking ahead to improved sales performance in 2014 for its Case and New Holland construction equipment brands, as well as other business segments
1595 CNH Industrial is forecasting improved performance from its Construction Equipment business in 2014 after the overall Group recorded net revenues of €25.8 billion in 2013 – up 4.3% on a constant currency basis on 2012 revenues.

Revenues from the Construction Equipment and Agricultural businesses, the former including the globally renowned 176 Case and 5895 New Holland brands, were in line with 2012 at €16.006 billion. On a constant currency basis, revenues from Construction Equipment-Agricultural increased by €759 million (+4.7%) as a result of the strong demand for agricultural equipment, said to be partially offset by challenges faced by CNH Industrial’s Construction Equipment operation.

For Q4 2013, Agricultural and Construction Equipment reported revenues of €3.9 billion, 3% up on a constant currency basis (-3.8% on a reported basis) thanks to a strong agricultural equipment performance, particularly in Latin America. Trading profit for the quarter was €298 million, an increase of €34 million (or 13%) over the same period in 2012, with a trading margin of 7.6% (trading margin of 6.5% for Q4 2012). Agricultural Equipment trading profit increased €14 million over Q4 2012 to €240 million, while Construction Equipment reported a trading loss of €41 million (€40 million loss for Q4 2012).

In further full 2013 year figures, CNH Industrial’s net profit of €917 million was up 2% on the €900 million achieved in 2012. The Group’s just published trading accounts also show Group trading profit was €1.985 billion in 2013, with a 7.7% trading margin in line with the previous year. Meanwhile, net industrial debt stood at €1.592 billion (€1,642 million at December 31, 2012). Group available liquidity totalled €6.3 billion (€6.2 billion at December 31, 2012).

The CNH Industrial Board of Directors is recommending for 2013 a dividend of €0.20 per share, totalling around €270 million.

CNH Industrial expects improved performance in 2014, with projected improved trading in the Construction Equipment, Trucks and Commercial Vehicles businesses, coupled with continued industrial efficiencies, expected to offset forecasted decline in unit demand of agricultural product equipment. Group revenues are tipped to be flat to up 5% and trading margin between 7.8% and 8.2%. Net industrial debt is expected to be between €1.5 billion and €1.7 billion.

For more information on companies in this article

Related Content

  • Bauma China 2014 during boom time for Chinese infrastructure investment
    January 6, 2014
    The significance of this year’s Bauma China exhibition in Shanghai has been highlighted by new figures showing that China invested US$220.27 billion (RMB 1.346 trillion) in civil engineering and infrastructure projects in the first six months of 2013 – with the National Bureau of Statistics of China claiming a year-on-year increase of more than 21%. The largest share of H1 2013 investment went into road-building, with Bernd Schaaf of Germany Trade & Invest (GTAI), Germany’s economic development agency, rep
    Read More
  • ARTBA: Up to 9,600 jobs at risk if Pennsylvania cuts transport works
    August 1, 2013
    Cutting highway and bridge work in the US state of Pennsylvania by 25% in any given year, and then sustaining it in future years, would cost the state US$1.25 billion in lost economic activity over a five-year period and put as many as 9,600 jobs permanently at risk, according to the American Road & Transportation Builders Association’s (ARTBA) chief economist. Dr. Alison Premo Black’s assessment of the impact of the potential impact of state-wide transport works cuts was part of her testimony to the Pennsy
    Read More
  • VDMA reports equipment orders
    July 21, 2020
    The VDMA is reporting a drop in equipment orders.
    Read More
  • Yanmar Compact Equipment targets rapid growth in North America and Europe
    March 15, 2023
    The CEO of Yanmar Compact Equipment says the company has hugely expanded its business outside of Japan since 2015 and is targeting further growth in growing markets such as North America and Europe.
    Read More

Highlighted Content