(Adds details, shares)
MILAN, July 31 Tractor and trucks maker CNH
Industrial said on Thursday its second-quarter
net profit inched higher after lower sales of agricultural
machinery were offset by higher deliveries from its propulsion
and transmission systems unit.
The sister company of Italian carmaker Fiat Chrysler
said April-June net profit rose to $358 million from
$348 million in the previous year.
Total group revenues were up 1 percent at $8.9 billion,
while sales of its industrial activities were pretty much flat
at $8.6 billion.
CNH Industrial, created last year from the merger of Fiat
Industrial and its U.S. unit CNH, confirmed its guidance for the
Milan-listed shares of the group rose 4 percent after the
results to 6.93 euros by 1427 GMT, outperforming a 1.6 percent
fall in Milan's blue-chip index.
The company, which competes with Caterpillar Inc and
Deere & Co, said net debt stood at $3.7 billion at the
end of June, down from $4 billion at the end of March.
In a new business plan unveiled in May, CNH Industrial said
it expected to raise operating profit for its industrial
activities by as much as 60 percent and become debt free over
five years by expanding and renewing its product lineup and
growing in Asia.
The company said it would invest $11.7 billion over the
period in new product launches and research and development to
grow net sales of its construction, agriculture and commercial
machinery by 17 percent to $38.3 billion by 2018.
(Reporting by Agnieszka Flak Editing by Jeremy Gaunt)