Milan | Reuters – Italian-American machinery maker CNH Industrial trimmed its forecast for full-year revenue for a second time this year after lower sales volumes and exchange rate factors weighed on results in the third quarter.
CNH Industrial, which makes most of its profit from farming machinery, Iveco commercial vehicles, construction equipment and powertrains, said net sales of industrial activities would come in between $26.5 and $27 billion this year, versus an already-trimmed previous guidance of $27-$27.5 billion.
Milan-listed shares in CNH Industrial fell as much as 4.3 percent after the earnings release and were down 2.1 percent by 1340 GMT.
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Farm and construction equipment maker CNH Industrial reported second-quarter profit and revenue above Wall Street estimates on Friday, as its ongoing effort to reduce costs helped offset pressures from lower sales and production.
But the company maintained its guidance on this year’s profits. It expects adjusted diluted earnings per share (EPS) of between $0.84 and $0.88.
CNH Industrial said its adjusted earnings before interest and tax (EBIT) fell 11.5 percent year on year to $284 million in the July-September period, slightly ahead of a $276 million average forecast in a Reuters analyst survey.
The company, whose main shareholder is Exor, the holding group of Italy’s Agnelli family, said in September it would split in two and list its truck, bus and engine division in an effort to boost asset values and streamline its businesses.
But since then it has made three small acquisitions in the agricultural segment, for aggregate value of approximately $85 million.
As a consequence of the M&A activity, CNH Industrial slightly increased its forecast for this year’s net debt of industrial activities, to $400-600 million.
