CNH Industrial N.V. – parent to the Case, New Holland, Iveco and Fiat Power Train brands – reported 2013 revenues increased 4.3 percent (on a constant-currency basis) to €25.8 billion on strength in agricultural equipment sales.
Press Release: CNH Industrial 2013 Financial Results
Revenues from the company’s combined Agricultural and Construction Equipment division increased 4.7 percent to €759 million, with Agricultural Equipment net revenues up 9 percent.
Construction Equipment net revenues decreased 11 percent. Worldwide Construction Equipment market share was substantially flat for both heavy and light equipment.
Agricultural and Construction Equipment trading profit increased 14.7 percent to €1,783 million, with a trading margin of 11.1 percent reflecting positive pricing, mix and industrial productivity compared with 2012. Agricultural Equipment trading profit increased €214 million (+17.1 percent) to €1,468 million. Construction Equipment reported a trading loss of €83 million (compared to a €30 million loss for 2012) due mostly to lower volumes, partially offset by favorable pricing.
Trucks and Commercial Vehicles revenues were up 1.5 percent to €8.8 billion as a result of a recovery in demand in Europe. Powertrain revenues at €3,331 million grew 14.6 percent, driven by higher volumes for both internal and external customers.
Group trading profit for 2013 was down€78 million to €1,985 million (trading margin of 7.7 percent), largely as a result of negative exchange rates. On a constant currency basis, trading profit was in line with 2012.
Projected improvements in operating performances in the Trucks and Commercial Vehicles and Construction Equipment businesses, coupled with continued industrial efficiencies, are expected to offset the projected decline in unit demand of agricultural product equipment forecasted for 2014.
Accordingly, CNH Industrial is setting its 2014 guidance as follows:
- Revenues flat to up 5 percent
- Trading margin between 7.8 and 8.2 percent
- Net industrial debt down slightly to between €1.5 and €1.7 billion
The Group will be releasing a new business plan in May of 2014 at an investor event to be held in the United States following the Q1 2014 results release.