UPDATE 1-CNH Industrial shares fall on weak outlook

Thu Jan 30, 2014 11:00am EST

(Adds details, share reaction, comment)

MILAN Jan 30 (Reuters) - Tractor and trucks maker CNH Industrial reported a flat fourth-quarter trading profit on Thursday and predicted revenues would grow no more than 5 percent this year, triggering a slide in its shares.

The sister company of Italian car maker Fiat, born last year from the merger of Fiat Industrial and its CNH unit, also forecast net industrial debt of between 1.5 billion euros ($2.05 billion) and 1.7 billion euros in 2014 against 1.59 billion euros by end 2013.

The company reported a 1.1 percent fall in revenues in the fourth quarter, hit by currency fluctuations. At constant currency prices, revenues would have increased by 4.2 percent.

"2013 results were not good and the 2014 debt (forecast) looks high," said a Milan-based trader.

The group said it would distribute a dividend of 0.20 euros a share on 2013 results.

The company, which competes with Caterpillar and Deere & Co, said it expected between zero and 5 percent growth in 2014 revenues from the previous year, while trading margin is seen at between 7.8-8.2 percent.

The trading profit for the three months to end-December stood at 436 million euros, in line with a year ago.

Milan-listed CNH Industrial shares extended their losses after results and fell as much as 5 percent. They were down 3.6 percent at 7.9 euros by 1539 GMT. In New York, where the merged company started trading on Sept. 30, shares were down 3.5 percent. ($1 = 0.7329 euros) (Reporting by Agnieszka Flak; Editing by Lisa Jucca; Editing by Elaine Hardcastle)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.