Source: https://www.ft.com/content/eba74b16-ce33-11e9-99a4-b5ded7a7fe3f
Peter Campbell in London 3 HOURS AGO
CNH Industrial, the agricultural equipment maker controlled by Italy’s Agnelli family, will spin out truckmaker Iveco as a separate business as part of a five-year plan to double profits. The company will hive off Iveco, Iveco Bus and the Heuliez Bus commercial vehicle brands, along with its powertrain business, into a separate company with revenues of $13bn by 2021. The remaining company will comprise the tractor business and construction equipment divisions, as well as special vehicles such as firefighting trucks, with combined revenues of around $16bn. “The bold plan will lead to the creation of two new global leaders in their respective fields,” said CNH chair Suzanne Heywood. The move continues a trend begun by Fiat Chrysler’s late former chief executive Sergio Marchionne, who separated both CNH and Ferrari from the carmaker, creating huge amounts of value in the process. The split is part of a five-year plan unveiled on Tuesday by CNH to increase its profit margin to 10 per cent by 2024, more than double current levels. It plans to invest $13bn into product development over the period, with the expectation that profit-per-share will rise from $0.86 at current levels, to $2 by 2024. Truck businesses tend to attract higher trading multiples than carmakers, but lower valuations than tractor-making groups. The planned split echoes Volkswagen’s decision to list part of its own truck brands, MAN and Scania, which began trading as Traton Group in June, though the listing was delayed and raised only €1.6bn, much lower than had previously been planned. |
Thread abonnieren
