CNH Industrial raises FY revenue guidance but cash flow negative in Q1 (updated)
05/05/2023 13:04
(Adds details from statement)
MILAN, May 5 (Reuters) - Agricultural and construction
machine maker CNH Industrial CNHI.MI CNHI.N on Friday raised
forecasts for its full-year revenue as operating profit topped
expectations in the first quarter.
The Italian American manufacturer however burnt cash in the
January to March period, with its free cash flow in industrial
activities coming in negative for $673 million.
By 1155 GMT Milan-listed shares in CNH were down 1.8%, after
initially extending gains following its earnings release.
The company on Friday guided for an increase in its revenue
from industrial activities of between 8 and 11% this year,
versus a previous forecast of between 6 and 10%.
"North American demand for row crop products is strong.
Globally, pricing continues to be resilient, order backlog
remains solid and well above 2019 levels," it said in a
statement.
In the first quarter, CNH's adjusted earnings before
interest and tax (EBIT) for industrial activities rose 29% to
$555 million, slightly topping an analyst consensus from a
Reuters poll.
(Reporting by Giulio Piovaccari; Editing by Gianluca Semeraro
and Jan Harvey)
((giulio.piovaccari@thomsonreuters.com))