Truckmaker Iveco raises 2022 guidance, exits Russian JV
2022.07.28 10:38
FILE PHOTO: Details of the front of an Iveco truck exhibited during a news conference in Turin, Italy, July 13, 2022. REUTERS/Massimo Pinca
MILAN (Reuters) – Truckmaker Iveco Group on Thursday raised its full-year guidance after a solid second quarter due to a resilient performance of its industrial operations and improved profitability at its financial services unit.
The Italian group, which separated from former parent CNH Industrial (NYSE:CNHI) at the beginning of this year, now sees full-year consolidated adjusted earnings before interest and tax (EBIT) at between 400-420 million euros ($409-429 million) and a 3-4% rise in net revenues from industrial operations.
Iveco earlier this year guided for a full-year adjusted EBIT of between 350-370 million euros and for net revenues from industrial activities to remain flat or grow up to 3% versus 2021.
The guidance lift comes despite Iveco posting a slight fall in second-quarter earnings, with revenues rising 1.5% to 3.4 billion euros.
Iveco said the operating environment remained “challenging” given constraints in the global supply chain, raw material price increases and energy supplies, all exacerbated by the ongoing Russia-Ukraine conflict.
The company added it had exited a Russian assembly joint venture, Iveco AMT, on July 20.
Despite Russia and Ukraine not representing “a material portion of the group business”, Iveco said it was “closely monitoring” the impact of the conflict on its employees and all aspects of its business, it said.
($1 = 0.9781 euros)
