By Gilles Castonguay
MILAN--Fiat Industrial SpA (FI.MI) Tuesday cut all its targets
for the year after posting lower-than-expected results for the
first quarter--sending its stock down more than 4%.
The Italian truck and tractor maker said its quarterly net
profit fell 15% to 171 million euros ($222.7 million), below the
EUR200 million expected by 17 analysts, according to a median of
their estimates calculated by the company.
It said in a statement it had revised its three targets based on
its expectations of the trading conditions across all sectors. Fiat
Industrial is the holding company of CNH Global NV (CNH) tractors
and combines, and Iveco trucks.
It didn't elaborate on the statement except to say it saw
strength in its agricultural equipment market--the business where
it makes most money.
It also spoke of challenging trading conditions in the first
quarter for its other businesses, namely trucks and construction
vehicles like earth-movers.
Fiat Industrial forecast a trading profit margin in the range
between 7.5% and 8.3% this year, from a previously expected 8.3% to
8.5%. Trading profit is operating profit excluding extraordinary
items.
It saw revenue growing by 3% to 4% instead of more than 5%.
The firm expects net industrial debt to be higher by the end of
the year, ranging between EUR1.4 billion and EUR1.6 billion rather
than EUR1.1 billion to EUR1.4 billion. Fiat Industrial gave the
original targets when it published 2012 results on Jan. 31.
For the first quarter, net profit attributable to shareholders
was EUR138 million, compared with EUR202 million for the same
period last year.
Fiat Industrial's U.S. unit, CNH, published its results
separately.
At 1300 GMT, shares were down 4.42% at EUR8.65 in Milan.
Write to Gilles Castonguay at gilles.castonguay@dowjones.com;
Twitter: @GRCastonguay
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