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

  • Strong performance sees Wirtgen Group bullish
    September 30, 2014
    The Wirtgen Group reports that strong financial performance is expected for 2014. Full results are not yet available for 2014 but the privately held, family owned firm is confident for good results. Joint president Jürgen Wirtgen said, “Sales for 2014 will reach €1.95 billion.” He explained that for the first half of 2013, turnover reached €285 million, whereas for the first six months of 2014, turnover reached €329 million, a jump of 15%. The second half of the year is also looking healthy with the firm on
    Read More
  • Market confidence remains strong in the build-up to bauma China 2012
    May 18, 2012
    Despite a slight slow-down in the pace of economic growth in China, market confidence remains strong in the country. The organisers of the upcoming bauma China event, from November 27 to 30 2012, say that China is still a key market for the global construction sector. Supported by a booming domestic market, the Chinese construction machinery manufacturers are also making ground on the international front. The exhibition is an international trade fair for construction machinery, building material machines, c
    Read More
  • The boards of SNC and Atkins agree the US$2.7 billion acquisition
    April 28, 2017
    The acquisition of Atkins by SNC-Lavalin has been unanimously approved by the boards of both global infrastructure providers for around US$2.7 billion. During the first full financial year of the merger group around $90 million of cost synergies is expected to be saved. The deal is still subject to regulatory and Atkins shareholder approval, likely to be given in the third quarter of this year. Atkins, based in London, brings around 18,300 employees to the group and expands SNC-Lavalin's geographic reach be
    Read More
  • Terex targeting “mineral wealth” led growth markets
    July 2, 2013
    A senior Terex figure said the leading construction equipment manufacturer is hard at work targeting future “mineral wealth” led sales growth opportunities in Africa, Russia, Asia and Australia. Speaking during the recent Terex Truck Days event at the firm’s articulated and rigid dump truck manufacturing facility in Motherwell, Scotland, John Mlonek, commercial sales manager for Terex Construction, said, “With the downturn in Europe, lots of our efforts have gone more into markets like South Africa, which i
    Read More

Highlighted Content