MILAN (Reuters) – Italian-American vehicle maker CNH Industrial on Friday improved its revenue and cash forecasts for this year after its results widely exceeded expectations in the second quarter, as it benefited from an industry cyclical upturn.
“Despite ongoing supply chain challenges and inflationary pressures, the continued strength of our end markets in conjunction with aggressive pricing activity, margin expansion initiatives … propelled us to record second quarter earnings,” Chief Executive Scott Wine said in a statement.
The maker of farm machinery, Iveco commercial vehicles, construction equipment and powertrains, said its adjusted earnings before interest and tax (EBIT) of industrial activities stood at $699 million in the second quarter, versus a $58 million loss a year earlier.
That compares with a $496 million forecast in an analyst poll compiled by Reuters.
Sales at the group’s industrial activities rose 65% in the April-June period to $8.49 billion, topping a $7.06 billion analyst forecast.
Milan-listed shares in CNH Industrial turned positive after results were published and by 1235 GMT were up 1.3%.
“CNH Industrial is poised for a noteworthy second half,” Wine said.
The group on Friday guided for sales from industrial activities to grow this year by 24%-28% including currency translation effects, versus a previously already improved forecast of between 14%-18%.
Free cash flow is now seen positive in excess of $1 billion this year, from a previous forecast of $0.6 billion-$1.0 billion.
(This story refiles to correct typographical error in headline)
(Reporting by Giulio Piovaccari; Editing by Edmund Blair)
