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

  • Italian manufacturer body Unacea reveals machine exports
    October 31, 2014
    The Italian construction equipment manufacturer body Unacea has revealed comprehensive information on machine sales and exports. The data shows that construction machine sales in Italy grew 12% in the first nine months of 2014. However exports fell 7% and Unacea believes that the export performance of Italian manufacturers on the world market will have shrunk by the end of the year compared with the figures for 2013. Over the first nine months of 2014, construction equipment sold in the Italian market sto
    Read More
  • Deutz sees new orders rise 43% in Q1 this year
    April 17, 2018
    German engine manufacturer Deutz saw new orders rise in the first quarter 2018 by nearly 43% per cent year-on-year to almost €575 million. The figure for the corresponding period in 2017 was €403 million, while in the fourth quarter of 2017 it was nearly €383 million. The company said that the significant rise in new orders was partly due to very favourable business conditions as well as to changed customer procurement behaviour. In the light of the strong demand and the introduction of emissions standard
    Read More
  • AEM voices concern over lower machine exports
    September 8, 2014
    The Association of Equipment Manufacturers (AEM) says that US construction machinery exports dropped 17.3% during the first half of 2014 compared with the same period for 2013. In all some US$8.93 billion in exports were shipped to global markets compared to $10.8 billion for first-half of 2013, according to US Department of Commerce data. The AEM off-road equipment manufacturing trade group produces global trends reports using US Commerce Dept. information to assist members’ business planning.
    Read More
  • Liebherr bullish with strong financial results
    April 26, 2017
    The Liebherr Group reports strong financial results for 2016, with a turnover of €9.01 billion. The firm managed to achieve this performance in a difficult market environment, the third-highest turnover in the group's history. Compared to the record year of 2015, this represents a decrease of €228 million or 2.5% however. The firm says that there were marked differences in business performance in the individual sales regions. In Western Europe, Liebherr's most important sales region, turnover increased. Thi
    Read More

Highlighted Content