Italy's Iveco raises FY guidance again on Q2 beat (updated)
02/08/2023 07:31
(Adds CEO quote, details on outlook)
MILAN, Aug 2 (Reuters) - Italian truck and bus maker
Iveco Group IVG.MI on Wednesday raised its 2023 guidance for a
second time, after posting a spike in adjusted operating profits
in the second quarter as pricing more than offset higher raw
materials costs.
The manufacturer said its adjusted earnings before interest
and tax (EBIT) from industrial activities would come in between
650-700 million euros ($715-$770 million) this year, up from an
already improved previous forecast of between 510-550 million
euros.
It now expects its net revenues of industrial activities to
increase between 5% and 8% on the year, up from a previous
guidance of 3%-5%.
"Our powertrain division is well on track in its margin
expansion", Iveco Chief Executive Gerrit Marx said in a
statement, as higher volumes and positive price realisation
drove an 11% yearly increase for the unit in revenues in the
quarter.
Overall strong sales in the quarter enabled steady
progress on every metric, despite the challenges of components
availability and raw material costs, Marx added.
In the April-June period, the truck maker's adjusted EBIT
from industrial activities stood at 266 million euros, up 192%
from a year earlier, while revenues from industrial activities
rose 23.4% to 4.11 billion euros thanks to higher prices as well
as volumes and mix.
($1 = 0.9097 euros)
(Reporting by Giulio Piovaccari, Alessandro Parodi and Luca
Fratangelo, editing by Federico Maccioni and Alvise Armellini)
((giulio.piovaccari@thomsonreuters.com))