Fiat Industrial confirms 2013 targets, merger plans
TURIN (Reuters) - Fiat Industrial FI.MI Chairman Sergio Marchionne said on Monday it will update its 2013 targets on April 30, and confirmed that the planned merger with U.S. unit CNH CNH.N is on track for the third quarter of this year.
Fiat Industrial plans to merge with its U.S. unit CNH to create the world's third-largest capital goods group.
"From a strategic point of view, we believe this is a necessary step in an outlook for growth and simplification, as well as independence and efficiency," Marchionne said at the annual meeting, where shareholders approved full-year accounts.
"We will update our targets when we release first quarter results," Marchionne said.
The CEO confirmed Fiat Industrial's full year 2013 targets of net debt at between 1.1 billion euros ($1.43 billion) and 1.4 billion euros, a 5 percent revenue growth, and a trading margin of between 8.3 percent and 8.5 percent of sales.
CNH MERGER ON TRACK
Fiat Industrial will buy the 12 percent of CNH it does not already own in a share swap, and will seek a stock market listing in New York in addition to its listing in Italy.
The merger must still be approved by shareholders at an extraordinary meeting. Marchionne on Monday did not give a date for the meeting, which is expected to be held in May. He left the meeting without answering journalists' questions.
The merged group will be based in the Netherlands, and is seen by some analysts as a template for a merger between Fiat FIA.MI, Fiat Industrial's sister company, and Fiat's unlisted U.S. unit Chrysler.
Marchionne however has played down such similarities.
Fiat has said it wants to merge with Chrysler, and may seek a U.S. listing for the new group by the end of 2014.
($1 = 0.7679 euros)
(Reporting by Jennifer Clark; Editing by Louise Heavens)