Fresh from the 2.1 billion transaction for the acquisition of the American Raven Industries, Cnh Industrial closes a second quarter of the year with consolidated revenues up 60% on 2020, at 8.9 billion dollars, net profit at $ 699 million and $ 1 billion in free cash flow from Industrial Activities. “Our sector is clearly in a cyclical phase of recovery and the robust performance underlying our businesses and our activities allows us to reap most of the benefits”, underlined the ceo Scott Wine, who highlighted the growth of the order book of Agriculture, Construction and Commercial and Specialty Vehicles.
Adjusted Ebit of Industrial Activities was $ 699 million versus a loss of $ 58 million in the second quarter of 2020, with all segments growing year-on-year. Agriculture’s adjusted EBIT margin is 14.7%, in the Commercial and Specialty Vehicles segment it was $ 100 million, $ 74 million for Powertrain and $ 24 million for Construction.
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The newco led by Gerrit Marx will be fully operational in 2022 and will have the task of completing the spin-off operation of the Group’s On-Highway business. The strategy to enhance the Group’s engine (FPT) and commercial (Iveco) business was announced with the industrial plan almost two years ago and has suffered some slowdown due to the Covid-19 pandemic. Then, putting aside the hypothesis of the acquisition by the Chinese of Faw, now the dossier is ready.
«We have started the first phase of redesigning our organization – explained Wine -, aimed both at eliminating bureaucratic obstacles to the centrality of the customer and at positioning each business in preparation for separation. Both the company that will be born from the spin-off and the remaining company remain fully focused on supporting our customers during these activities ».
CNH’s new On-Highway business will include Iveco – commercial vehicles -, Iveco Astra and Bus, Heuliez Bus, Magirus (fire fighting vehicles), Iveco Defense Vehicles and Ftp Industrial, the company that develops engines. The appointment of the CEO last June represented a key step, in parallel with the work on organization and structure.