Iveco-CNH, demerger from January 1st: goal to optimize costs and capital
From 1 January 2022, the demerger of Iveco Group from CNH Industrial will be effective and, two days later, the placement on the stock exchange will take place. It is the most important news contained in the document released today by the company. The spin-off it was first announced on the occasion of the Capital Markets Day of 3 September 2019.
“The reasons presented at the time for the split – reads the note – remain valid and follow the completion of a in-depth review process of the product portfolio, taking into account, among other things, considerations relating to strategy, investors and synergies “.
The declared objective is the separation activities on-highway, that is heavy vehicles which, however, can circulate on the high-speed roads that will go to Iveco and off-highway, that is the agricultural and construction machinery.
“This review – the company note continues – highlighted that the activities”On-Highwaand “e”Off-Highway“They have different regulatory requirements and customer needs and are impacted differently by the accelerations of industrial megatrends. The split aims at maximize the focus and flexibility of the management, align investment priorities and incentives, better meet respective business needs e optimize the cost and capital structure of each company, promoting profitable growth “.
Iveco, target 17 billion in revenues in 2026. Profit between 600 and 800 million
The five-year period 2022-2026 is what the company does not hesitate to define as “change of pace“. At the end of the period, the expectations are Net revenues from the industrial activities that will fluctuate between 16.5 and 17.5 billion euros, up by (at least) 4.7 billion compared to the 2019 budget Expected Cagr is 5%. The EBIT margin should reach 6%, with a increase of more than 50% compared to 2019, when a margin of 3.6% was recorded. Also the profit it should increase significantly as it passes from 300 million from 2019 a a fork between i 600 and 800 million.
Following the split, Iveco Group will become the holding of a leading global group in capital good, engaged in the production of industrial, commercial, bus and defense vehicles. The latter sector had been one of the reasons – in addition to the price – for which it was skipped the sale of Iveco to the Chinese of Faw, which had begun to be talked about at the end of 2020 and which had finally faded in 2021.
The Minister Giorgetti, in fact, had not welcomed the fact that a Chinese group could get its hands on the division responsible for the production – as the owner of the MISE himself said – “of heavy duty vehicles of national strategic interest”.
“As part of the demerger and as a result of the law – reads the company’s note again -, each holder of ordinary shares in the share capital of Cnh Industrial will receive one ordinary share for every five ordinary shares of Cnh held by the same as of December 31, 2021 “. If the shareholder also holds special voting shares in the share capital of Industrial Name, as a result of the law, it will receive a number of special voting shares in the share capital of the company which is equal to the number of ordinary shares for which it will be registered in the Special Register.
Iveco signs The Climate Pledge: zero emissions by 2040. Focus on natural gas
What will the new Iveco be like? I will definitely have a pay attention to the environment. In fact, today the signature on the Climate Pledge, the commitment to achieve zero emissions net of carbon dioxide by 2040, 10 years ahead of the Paris Agreement.
The development of a alternative fuels new generation running on liquefied and compressed natural gas (LNG and CNG) compatible with biomethane, to further reduce CO2 emissions and the Total Operating Cost. We will also focus on natural gas engine technologies to obtain lower and lower nitrogen oxide emissions.
2023 will be the debut year of the Electric Daily and a full range of electric buses. The following year, one will be built new heavy range “full electric” and with cells. Finally, in 2030, there will be the implementation of alternative transmission technologies (electric / hybrid) on all vehicles, to achieve a 50% reduction in CO2 emissions.