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CNH Industrial sees protracted supply chain issues this year -Breaking

by Mike Robinson

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MILAN, Reuters – CNH Industrial(NYSE:) has protracted supply chains issues as this vehicle maker presented on Tuesday its latest quarterly results. This was before the company split at the start of the year. There was a 23% decline in operating profit.

Scott Wine, chief executive of the company, stated that the organization had to address supply chain problems in the fourth quarter. This included microchip shortages.

In a statement released Tuesday, he stated: “While these tensions are likely to continue, so is our group’s demonstrated ability of to overcome them.”

CNH Industrial, which had begun January, completed a plan that would spin off its engine, bus, and truck operations. Now, the company is listed under Iveco Group CEO Gerrity Mars.

CNH stated that the adjusted earnings before tax and interest (EBIT), from industrial activities, was $401 million. This compares to an earlier result of $520 million a year.

The net company sales from industrial activities grew by 30% in 2013, exceeding its expectations for growth of between 24% and 28%. It also generated more than $1.75 billion of free cashflow during that period.

CNH Tuesday forecasted a 10%-14% increase in industrial net sales as it concentrated on the Iveco demerger.

Milan’s listed shares in CNH Industrial, and Iveco both recovered from their day-lows just after the results were released. CNH shares rose 0.4% at 1345 GMT and Iveco shares dropped 1% by the same time.

CNH offered a CNH Divided on Last Year’s Results of 0.28 Euro ($0.32) Per Share, which equals a total cash payout around 380 Million euros (or $430,000,000), the company stated.

Iveco Group released separate statements on its Pro-forma 2021 results. It stated that its net revenues from industrial activities increased 21% over the year, to 15.52 Billion Euros, and its adjusted EBIT (from industrial activities) stood at 302 M euros, compared with a loss of 89 Million in 2020.

Marx stated that the CEO’s expectations were high for the coming year.

In the statement, he stated that there was a 77% increase worldwide in order intake for 2021 and that they are working to make their production footprint as efficient as possible.

Iveco’s November business plan was presented. The company aimed to generate revenue in the range of 16.5-17.5 trillion euros by 2026.

($1 = 0.8766 euros)

 

 

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