CNH Industrial sees revenues rising up to 24% to 2024 By Reuters

© Reuters. FILE PHOTO: Flags with CNH Industrial logo are pictured outside CNH Industrial building in Turin, Italy, February 5, 2020. REUTERS / Massimo Pinca

MILAN (Reuters) -Italian-American vehicle maker CNH Industrial (NYSE 🙂 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 (OTC :), 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 (NASDAQ 🙂 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 presentation presentation.

“Disciplined M&A will be a key part of our strategy going forward.”

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