Because the accounts of Cnh Industrial will not shine too much
Cnh's revenues and profit for the third quarter are good, but the group still lowers the guidance
Ups and downs for Cnh Industrial (controlled by the Exor group , the holding company of the Italian Agnelli family ) in Piazza Affari.
"If after the release of the quarterly accounts and the announcement of the cut to the guidance at the end of the year, the shares have come to lose 2.6%, a little while ago, in conjunction with the conference call, they went up by more than 1%. Now they mark a + 0.8%, settling at 15.39, after updating a new all time high to 15.53 euros ” reports Radiocor .
During the earnings call, the Italian-American vehicle manufacturer made a cautious note about its prospects for 2021 on Thursday due to supply chain issues. Despite the third quarter operating profit nearly doubled driven by strong demand for agricultural machinery. Net income is $ 329 million, which compares with a loss of $ 932 million in the same period a year ago.
By the end of the year, CNH expects net sales revenues to be at the lower level of previous prospects (growing between 24% and 28% year-over-year).
Net revenues for the third quarter were $ 7.972 billion, up 23% from a year ago.
Furthermore, the company of the Exor group does not rule out new temporary closures due to problems on the global logistic-production chain.
Last month, the group led by CEO Scott Wine announced the temporary closure of plants in Europe due to supply disruptions and a shortage of key components, especially semiconductors.
Finally, the Iveco spin-off plan continues. The operation is on track for completion early in the first quarter of next year, Wine said.
After the spin-off, CNH will focus on its agricultural machinery and construction machinery businesses.
All the details on the quarterly accounts of Cnh Industrial.
STRONG REVENUES IN THE THIRD QUARTER
In the third quarter ended September 30, the group recorded revenues of $ 7.97 billion, up 23% compared to the $ 6.49 billion achieved in the same period last year, with increases in all segments due to of continued strong demand and better prices.
WELL THE PROFIT
The company ended the quarter with a profit of $ 329 million, which compares with a loss of $ 932 million in the same period a year ago.
THE RESULTS OF THE FIRST NINE MONTHS OF 2021
As for the results for the 9 months of 2021, consolidated revenues were 24.356 billion dollars, up 39% on the year. Net revenues from industrial activities increased by 42% to 23.07 billion euros. Net income for the period was $ 1.453 billion, compared with a loss of $ 625 million a year ago. Adjusted net profit is $ 1.533 billion and the adjusted EBIT of industrial activities is $ 1.713 billion. As regards the Free cash flow of Industrial Activities, this is negative for 0.7 billion dollars due to the seasonal absorption of working capital, aggravated by the interruptions in the logistic-production chain in the last part of the quarter.
DEBT DECREASES
Total debt was $ 23.7 billion as of September 30, 2021 (down from $ 26.1 billion as of December 31, 2020).
LIQUID ASSETS
Net liquidity from Industrial Activities amounted to $ 0.7 billion, a decrease of $ 0.7 billion compared to June 30, 2021. Available liquidity is $ 13.5 billion as of September 30, 2021.
AGRICULTURAL MACHINERY DRIVE THE ORDERS
As for orders, CNH Industrial specifies that the order book for the Agriculture division has more than doubled year on year for tractors worldwide, with strong orders from dealers in all geographic areas.
Combine harvesters worldwide have more than doubled, with the greatest growth in North America and Europe. The Construction division's order book is growing year-on-year for both the Heavy and Light sub-segments, with increases in all geographic areas and, in particular, in North America and Europe, where it has more than tripled. In addition, new orders for trucks in Europe are up 68% year-over-year, with light vehicles up 61% and medium and heavy vehicles up 89%. The ratio between orders and turnover of industrial vehicles in Europe is 1.87.
RETOUCHED THE GUIDANCE
However, for the whole of 2021, CNH Industrial has adjusted its guidance. In particular, with regard to net sales revenues, the group expects that they will be at the lower level of previous prospects (growing between 24% and 28% year on year) including the effects of the translation delta. Either way, the company expects solid demand across all geographies and segments.
FAULT OF PRESSURE ON RAW MATERIALS AND LOGISTICS
In the latter part of the year, the growing impact of pressures on raw materials and persistent pressures on transport and logistics will be partially offset by better prices.
THE GROUP'S POSITION
The group expresses satisfaction with the results of the third quarter, underlining that it has recorded "a solid performance due to higher volumes and better prices, supported by the persistent solid demand in our final markets, but opposed by the difficulties of the logistics-production chain, which have continued to affect the cost of raw materials, the availability of components and sales until the end of the quarter ”.
NOT EXCLUDED FURTHER TEMPORARY CLOSURES
Furthermore, Cnh Industrial “cannot guarantee that there will be no further temporary closures of its production plants on the basis of persistent problems in the availability of components”. This is what the CNH Industrial group indicates in a note. The situation is due to the fact that, it is explained, "the global logistics-production chain still shows increasing costs and pressures on supplies, with continuous interruptions in supply that force repeated reviews of production programs" and that "it is expected that the critical conditions affecting the logistics-production chain remain in the last quarter of the year ".
DELIVERY OF THE FIRST NIKOLA THREES IN THE USA IN 2022
Finally, the spin-off project between Iveco, which produces commercial vehicles, and Fpt, which produces powertrains, continues.
The new company will be called Iveco Group – eight brands and Fpt – and will be listed on the Milan Stock Exchange for a value of between 5 and 10 billion. Iveco is pursuing plans for the spinoff aimed at expanding the production of electric vehicles. In September it inaugurated a new plant in Ulm, Germany, with Nikola, a US start-up of electric trucks.
"The first Nikola Tre electric battery models produced in Ulm, Germany will be delivered to customers in the United States in 2022" announced Gerrit Marx, CEO of Iveco Group, the company that will be born from the spin-off of Cnh Industrial, presenting the results of the activities that will flow into Iveco Group, during the call on the accounts of the third quarter of 2021 of Cnh Industrial.
IN EUROPE IN 2023
In addition, in 2022, Marx continued, deliveries will be made "to selected customers in Europe who can obtain exemptions for road use (of vehicles) with the longest US wheelbase and larger turning radii". Subsequently, "later in 2023, we will launch the European version of the Nikola Tre as per our initial announcements in September 2019," Marx said.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-non-brilleranno-troppo-i-conti-di-cnh-industrial/ on Thu, 04 Nov 2021 15:39:33 +0000.