December 9, 2022

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Iveco Group raises FY forecasts after operating profits rose in Q3 By Reuters

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© Reuters. FILE PHOTO: Iveco trucks are seen at the Fiat Industrial Village in Turin October 31, 2012. REUTERS/Giorgio Perottino

MILAN (Reuters) – Truck maker Iveco Group on Wednesday raised again its forecasts for this year’s results, after operating profits rose in the third quarter, as pricing, volumes and a better product mix more than offset higher raw material and energy costs.

The Italian manufacturer said in a statement that its consolidated adjusted earnings before interest and tax (EBIT) would come between 420-440 million euros ($423-$443 million) this year, versus a previous estimate of between 400-420 million euros.

Net revenues of industrial activities are now seen up between 5-6% this year, compared to a previous forecasts of between 3-4%, the group said.

Iveco said its decision to raise forecasts followed “solid” results it had booked so far in 2022 and the “better availability of semiconductors for the remaining part of the year”. However the supply chain was still under pressure, although now more predictable, while energy and inflation costs were challenging and were expected to affect both the company and its supply chain, it added.

The company also upped a forecast for its full-year net cash for industrial activities.

In the third quarter Iveco’s adjusted EBIT of industrial activities rose to 64 million euros from a proforma 33 million euro result a year earlier, when the truckmaker was still part of CNH Industrial (NYSE:) group.

That was broadly in line with a market consensus of 62 million euros provided by Intesa Sanpaolo (OTC:).

($1 = 0.9940 euros)