Fiat Industrial cuts 2013 targets, shares fall
MILAN (Reuters) - Italian truck and tractor maker Fiat Industrial FI.MI has cut its 2013 targets, after truck sales at its Iveco unit fell 6.7 percent in weak European and Latin American markets last year, forcing it to adjust a business plan set out in 2010.
"The new target for trading profit next year is below the previous business plan, which however is very old," said Marco Cristofori, an analyst at Centrobanca. "The analyst consensus is more or less in line with the new targets."
At 6:20 a.m. ET, the shares were down 2 percent at 9.28 euros.
The company said it saw a trading margin on sales of between 8.3 percent and 8.5 percent in 2013, which works out to a trading profit of between 2.2 and 2.3 billion euros.
The previous target was a trading profit of 2.5 to 2.8 billion euros, set in 2010.
Analysts were forecasting a trading profit of 2.29 billion euros for 2013, according to a consensus compiled by the company.
The new sales forecast for 2013 is about 27 billion euros, in line with the earlier business plan for 2011 through 2014.
The company sees its debt at between 1.1 billion euros and 1.4 billion this year, a touch lower than the 1.64 billion at the end of 2012 but well above the analysts' consensus of 795 million.
It said its fourth-quarter trading profit rose to 438 million euros, on the back of strong performance of its agricultural unit CNH CNH.N, where sales rose 15.5 percent to 16.0 billion euros.
"Solid global demand for agricultural equipment more than offset the negative effects of the more difficult trading conditions in the construction equipment segment," the company said in a statement.
Fiat Industrial said it will pay a dividend of 0.225 euros per share.
(Reporting by Jennifer Clark and Stefano Rebaudo; Editing by Stephen Jewkes and David Holmes)