CNH Industrial lowers revenue guidance on worsening market conditions (updated)
07/11/2023 13:09
(Adds detail, quote and updates share price reaction)
Nov 7 (Reuters) - Agricultural and construction
machinery maker CNH Industrial CNHI.MI CNHI.N on Tuesday
lowered its 2023 revenue forecast, citing the softening of
end-market conditions, predominantly in South America.
The Italian-American company guided for an increase in net
revenue from industrial activities, which account for the
majority of CNH's revenue, of between 3-6% this year, down from
a previous forecast of 8-11%.
CNH, which houses brands such as Case IH and New Holland,
reported third-quarter net sales from industrial activities down
1% year on year at $5.33 billion.
South American tractor demand was down 16% and combine
demand fell 47% in the three months to Sept. 30.
The group is positioned to maintain its full-year adjusted
earnings per share target of about $1.70, Chief Executive Scott
Wine said in a statement.
CNH, which also announced a new share buyback programme as
part of plans to achieve single listing on the New York Stock
Exchange, reported quarterly adjusted operating profit from
industrial activities of $657 million, down from $670 million a
year earlier.
Its Milan-listed shares turned negative after the results
were published and were automatically halted from trading after
sliding almost 10% by 1305 GMT.
(Reporting by Alessandro Parodi and Bianca Flowers
Editing by Kirsten Donovan and David Goodman)
((alessandro.parodi@thomsonreuters.com))