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

  • Cat Financial Services announces third quarter 2014 results
    October 23, 2014
    Cat Financial Services, the finance arm of Caterpillar Inc., reported third-quarter 2014 revenues of US$743 million, an increase of $44 million, or 6%, compared with the third quarter of 2013.
    Read More
  • Hill & Smith reports strong performance
    May 17, 2016
    Hill & Smith Holdings reports a good start to the year, with trading ahead of expectations. The firm’s latest trading update runs from 1st January 2016 to 30th April 2016. The board says it is pleased to report that trading in the period has been encouraging and is ahead of the expectations that it set out at the time of reporting its 2015 preliminary results in March. Revenue for the period was £163.1 million, compared with £153.2 million for the same period in 2015. This represent a 2% organic increase
    Read More
  • Demand diversity in the construction equipment sector
    June 1, 2015
    Demand within the global construction equipment manufacturing industry is anything but homogenous, with certain countries and sales regions significantly outperforming others, with a whole host of factors fuelling and suppressing each key market - Guy Woodford reports
    Read More
  • STRABAG sees profits grow
    April 29, 2016
    Construction company STRABAG has seen its financial performance improve during the 2015 financial year. The firm’s earnings before interest and taxes (EBIT) reached €341.04 million, an increase of 21% over the previous year. Double-digit growth was also achieved in net income (after minorities), with a gain of 22% to €156.29 million, while earnings/share grew from €1.25 to €1.52. These developments have compelled the management board to propose to the AGM planned for June 2016 a dividend of €0.65, which wil
    Read More

Highlighted Content