By Gilles Castonguay
MILAN--CNH Industrial NV, the newly merged truck and tractor
maker whose stock begins trading in New York on Monday, plans to
adopt a dividend policy with a potential payout of up to 35% of net
profit.
CNH Industrial was formed by Fiat Industrial SpA's (FI.MI)
acquisition of its U.S. subsidiary CNH NV (CNH).
According to a slide presentation released Friday, CNH
Industrial has set a minimum payout target of EUR150 million.
There would also be the potential to provide other "shareholder
friendly distributions," the presentation says without
elaborating.
The presentation came as the company's executives meet with
potential investors to promote the stock ahead of its listing. The
stock will also begin trade in Milan.
It took Fiat Industrial more than a year to buy out CNH
shareholders who held the remaining 12% stake that it didn't
already own.
Based in Turin, Italy, Fiat Industrial is best known for its
Iveco trucks. CNH, whose head offices are near Chicago, makes Case
Construction excavators and New Holland tractors.
Fiat Industrial paid a dividend this year of EUR0.225 a share on
2012 results, for a total of EUR275 million. CNH Industrial also
confirmed 2013 targets set by its predecessor, including a profit
margin of up to 8.3% on revenue of more than EUR24 billion.
CNH Industrial ranks behind Caterpillar Inc (CAT), Volvo AB
(VOLV-B.SK) and John Deere Ltd (JDE-YY) in terms of revenue,
according to the presentation. In 2012, CNH Industrial would have
had revenue of EUR24.7 billion.
The last day of trading in Fiat Industrial shares in Milan is
Friday. They were down 1.06% at EUR9.81 at 1427 GMT, giving the
company a market capitalization of EUR12.13 billion, according to
FactSet.
CNH Industrial is incorporated in the Netherlands and it is
seeking fiscal residency in the U.K.
-Write to Gilles Castonguay at gilles.castonguay@dowjones.com;
Twitter: @GRCastonguay
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