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

  • AIA’s UK ‘crumbling roads’ survey prompts call for greater Government funding
    March 14, 2013
    The annual national survey of UK local road network condition and funding claims there is a crumbling road crisis of increasing concern, prompting renewed calls for increased and longer term Government funding. Commissioned by the Asphalt Industry Alliance (AIA), the 18th Annual Local Authority Road Maintenance (ALARM) Survey was completed by 75% of councils across England and Wales and reports that the number of potholes filled over the last year rose to over two million - an increase of 29% on the previou
    Read More
  • Denmark's Jutland bridge options
    February 29, 2012
    Cost concerns have entered the discussion arena for Denmark's proposed bridge linking the islands of Jutland and Funen.
    Read More
  • Chinese infrastructure growth
    May 23, 2014
    Plans are in hand for transport expansion in China. This includes major works in the Chinese provinces of Hubei and Hebei as well as the city of Yibin. In Hubei province the infrastructure programme calls for 6,500km of highway to be complete by the end of 2015. Hubei Province has spent US$17.07 billion in the first three years of the 12th Five-Year Period (2011-2015) on highway construction. At the moment, 2,278km of highway is under construction in the province. Meanwhile Hebei Province plans to spend $3.
    Read More
  • Astec Industries plans to close Telsmith manufacturing facility
    June 12, 2020
    US-based Astec Industries has announced plans to cease all production activity at its Telsmith manufacturing facility in Mequon, Wisconsin.
    Read More

Highlighted Content