Iveco plans to move into zero-emission trucks after split


Flags with the CNH Industrial logo are pictured outside the CNH Industrial building in Turin, Italy, February 5, 2020. REUTERS / Massimo Pinca / File Photo

Register now for FREE and unlimited access to reuters.com

Register now

MILAN, Nov. 18 (Reuters) – Iveco will focus on zero emission trucks and buses and aim to act like an agile startup as its owner CNH Industrial (CNHI.MI) prepares to split the unit to focus on agricultural machinery and construction equipment, executives said Thursday.

In a presentation to investors, CEO-designate Gerrit Marx said the investment community should view Iveco as a “150-year-old startup” capable of “outsmarting and outwitting” its larger competitors.

The CNH split mirrors that of Daimler (DAIGn.DE), whose truck operations will be listed next month, and follows the 2019 listing of Volkswagen’s Traton (8TRA.DE) truck unit (VOWG_p.DE) ). Read more

Register now for FREE and unlimited access to reuters.com

Register now

Traton bought out US truck maker Navistar this year as the industry consolidates in the face of the costly challenges of developing fully electric models for short haul trucks and hydrogen fuel cells for long haul trucks.

Iveco is the second European player in the mid-size commercial vehicle segment after Daimler, according to 2020 data provided by pressure group ACEA, but it lags behind its competitors in the heavy commercial vehicle market.

In its listing prospectus, Iveco, which also manufactures specialty and defense vehicles as well as powertrains, said its split from CNH would help both participate in the consolidation.

CNH shares were down about 2% after the presentation.

CNH shareholders would receive one Iveco share for every five CNH shares. Based on the current CNH share price, this would give Iveco a market value of around € 4 billion.

Banca Akors analyst Gabriele Gambarova said Iveco was on the right track on emissions and financial services, and was strong on defense vehicles and powertrains.

“Still, my feeling is that the small size and low margins make it a target for mergers and acquisitions,” he said.

Iveco announced Thursday that it will develop a range of fully electric buses by 2023 and a new range of electric and fuel cell heavy trucks by 2024.

The latest addition to electric trucks, Iveco has created a joint venture with the American group Nikola (NKLA.O) to produce battery electric vehicles, starting with the heavy truck Nikola Tre and hydrogen fuel cell trucks from end of 2023. read more

Iveco said it targets revenue of between € 16.5 billion and € 17.5 billion ($ 18.7–19.8 billion) by 2026, a compound annual growth rate of 5 % compared to 2019, before the COVID-19 pandemic.

CNH shareholders are expected to approve the split on December 23, paving the way for Iveco’s shares to go public on January 3.

And he forecast an adjusted operating profit margin for industrial activities of 5.0-6.0% in 2026, up from 3.6% in 2019.

It aims for free cash flow of 500 million euros in 2026, against 30 million in 2019.

($ 1 = 0.8819 euros)

Register now for FREE and unlimited access to reuters.com

Register now

Reporting by Valentina Za; Editing by Agnieszka Flak, Alexander Smith and Keith Weir

Our standards: Thomson Reuters Trust Principles.


Source link

Previous Montana Aerospace raises $ 164 million to buy Asco
Next Fun gift ideas for farm kids