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

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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,


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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.


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“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)



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