MILAN (Reuters) -Italian-American vehicle maker CNH Industrial guided on Tuesday for a total revenue growth of up to 24% through 2024 as it presented a new business plan after spinning off its truck, bus and engine units.
At the beginning of this year CNH Industrial completed the spin-off of its lower-margin truck, bus and engine operations, separately listed as Iveco Group, in a bid to focus on its agriculture and construction machine businesses.
In slides prepared for the strategy presentation the group, which is controlled by Exor, the holding company of Italy’s Agnelli family, forecast net sales of between $20-22 billion in 2024, up from $17.8 billion last year.
The company, which houses brands such as Case and New Holland, also guided for a margin on its adjusted operating profit (EBIT) of between 12-13% in 2024 from 9.9% in 2021, with that of its agriculture unit increasing to between 14.5-15.5% from 12.3% over the same period.
After buying Raven Industries last year for $2.1 billion to bolster its position in precision agriculture, CNH will now focus on “disciplined” M&A activity, it added.
“We’re not buying to get bigger, our dollars are going to go towards driving organic growth,” Chief Executive Scott Wine told analysts during the plan presentation.
“Disciplined M&A will be a key part of our strategy going forward.”
(Reporting by Giulio Piovaccari in Milan and Bianca Flowers in New York; editing by Agnieszka Flak)
