April 8, 2019 / 3:09 PM / 7 months ago

UPDATE 1-Iveco is core for CNH Industrial, says CEO as strategy review continues

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MUNICH, April 8 (Reuters) - The Iveco trucks business is a core part of CNH Industrial, the group’s new chief executive said on Monday, adding that a wider CNH strategy review is still in progress.

Iveco has often been cited as a potential spin-off candidate, with CNH Industrial’s previous CEO having said he was open to the possibility of hiving off some businesses once their balance sheets were sound.

“We will hold a capital markets day in the second half of this year and give an outline of how CNH Industrial’s portfolio will develop in the next 10 to 15 years,” Hubertus Muhlhauser, who took the helm last year, told Reuters on the sidelines of the Bauma trade show in Munich.

Italian-American CNH Industrial makes most of its profit from farming machinery, Iveco commercial vehicles, construction equipment and powertrains.

At the trade show, the group’s CASE construction equipment brand unveiled a methane-powered wheel loader concept vehicle.

Muhlhauser said that CNH Industrial, already a European market leader in buses and trucks powered by alternative technologies, would benefit from a shift from diesel to liquefied natural gas (LNG) and compressed natural gas (CNG) in medium and heavy duty vehicles.

“We believe we can greatly benefit from that shift in trucks ... we want to make our overall portfolio projections against this background,” he said, adding that using biomethane gas was another way out of diesel.

Muhlhauser also confirmed the company’s outlook for the year.

“We again expect to see growth in profitability this year,” he said. (Reporting by Joern Poltz Writing by Agnieszka Flak Editing by David Goodman)

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