CNH sees revenue increase through 2024 as new plan focuses on precision agriculture

Content of the article

MILAN – Italian-American automaker CNH Industrial on Tuesday gave forecasts for total revenue growth of up to 24% through 2024 as it presented a new business plan after splitting off its truck, bus and truck units. engines.

In a bid to focus on its higher-margin agriculture and construction machinery businesses, where data content, autonomous technologies and alternative fuels are increasingly at the core, CNH Industrial completed early from this year the spin-off of its truck, bus and engine businesses, now listed separately as the Iveco Group,

Content of the article

In slides prepared for the strategy presentation, the group, which is controlled by Exor NV, the holding company of the Italian Agnelli family, forecasts net sales of between $20 billion and $22 billion in 2024, up from $17.8 billion. dollars last year.

CNH, home to brands such as Case and New Holland, also guided an adjusted operating profit (EBIT) margin of between 12% and 13% in 2024 from 9.9% in 2021, that of its agricultural unit. increasing between 14.5% and 15.5% against 12.3% over the same period.

New York-listed shares of CNH Industrial hit a daily low after the release of details of its business plan and were down 5.4% at 1815 GMT.

After buying Raven Industries last year for $2.1 billion to strengthen its position in precision agriculture and autonomy, CNH will now focus on “disciplined” M&A activity, it said. -he adds.

Content of the article

“We’re not buying to get bigger, our dollars are going to drive organic growth,” chief executive Scott Wine told analysts when presenting the plan.

“Disciplined mergers and acquisitions will be a key part of our strategy going forward.”

The company added that it is seeing strong buyer interest in Raven’s technical films and aerostar units, the two non-core businesses it plans to sell.

Parag Garg, Chief Digital Officer, said CNH is well positioned to be leaders in empowerment and helping customers throughout the agricultural cycle.

“Automation is a key asset to CNH Industrials’ technology strategy, already bringing benefits to farmers around the world across the entire cycle and helping to build a backbone to enable it to deliver a self-sustaining future,” said he told analysts. (Reporting by Giulio Piovaccari in Milan and Bianca Flowers in New York; editing by Agnieszka Flak and Jonathan Oatis)