MILAN (Reuters) -Italian American vehicle maker CNH Industrial sounded a cautious note on its 2021 outlook due to supply chain issues, after its operating profit almost doubled in the third quarter supported by a strong performance of its agriculture business.
The maker of farm machinery, construction equipment, Iveco commercial vehicles and powertrains, said its 2021 revenues were now seen at the lower end of the range it provided three months ago, indicating a rise of between 24-28%.
Chief Executive Scott Wine said the group was able to overcome an “increasingly challenging supply chain situation” in the third quarter, but added that “acute supplier issues” would constrain CNH’s results in the fourth quarter.
Milan-listed shares in CNH Industrial reversed earlier gains after results and were down 2.2% by 1230 GMT.
CNH on Thursday also slightly trimmed its free cash flow forecast for the year to around $1.0 billion, after saying earlier it would be in excess of that figure.
In the July-September period the group’s adjusted earnings before interest and tax (EBIT) of industrial activities rose to $469 million from $238 million a year earlier. That topped a $437 million forecast in an analyst poll compiled by Reuters.
(Reporting by Giulio Piovaccari, editing by Valentina Za)
