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

  • U.S made construction equipment exports rose 13% in 2012, AEM says
    February 27, 2013
    Exports of U.S.-made construction equipment were up 13% to US$26.7 billion in 2012 compared to 2011, according to the Association of Equipment Manufacturers (AEM) citing of U.S. Commerce Dept. data in global market reports for members. AEM noted that the 13% 2012 gain follows a 43% year-on-year growth in 2011, and 28% growth in 2010, after a deep recession decline of 38% in 2009. "Exports have been called a bright spot for the U.S. economy, and this has been especially true for construction equipment manufa
    Read More
  • Report identifies strong future demand for machines
    June 25, 2015
    According to a report from US-based research firm Freedonia, world demand for construction machinery will grow by 3.9%/year to $218 billion by 2019. The Asia/Pacific region, Central and South America, and the Africa/Mideast region are all expected to register above average gains looking ahead as construction spending, particularly on infrastructure projects, continues to increase. More than two-thirds of all additional construction equipment demand generated between 2014 and 2019 will be in China according
    Read More
  • Volvo CE has maintained profitability for 2024
    January 31, 2025
    Volvo CE has maintained strong profitability for 2024
    Read More
  • Caterpillar’s latest results show some positive signals
    April 22, 2016
    Caterpillar has released its first quarter results for 2016, which show some positive results although market conditions remain tough. The firm’s first-quarter 2016 sales and revenues hit US$9.5 billion, down from $12.7 billion in the first quarter of 2015. First-quarter 2016 profit/share of $0.46 was down from a profit of $2.03/share in the first quarter of 2015. Excluding restructuring costs, profit/share was $0.67, compared with $2.07/share in the first quarter of 2015.
    Read More

Highlighted Content