Recasts, adds details
MILAN, Feb 8 (Reuters) – CNH Industrial CNHI.MI sees protracted supply chain issues this year as the vehicle maker presented its last quarterly results before it split in two at the beginning of the year, with a 23% drop for its operating profit.
Chief Executive Scott Wine said the group had to manage supply chain issues in the fourth quarter, specifically microchip shortages.
“While these pressures are likely to persist, so is our team’s demonstrated ability to overcome them,” he said in a statement on Tuesday .
CNH Industrial completed at the beginning of January a plan to spin-off its truck, bus and engine operations, now listed separately as Iveco Group IVG.MI.
CNH said its adjusted earnings before interest and tax (EBIT) from industrial activities stood at $401 million in the October-December period, versus a $520 million result a year earlier.
The company, which after the demerger focused on its agriculture and construction machinery business, guided for an increase in net sales from industrial activities of between 10%-14% this year. That is below the higher than expected 28% growth it posted last year.
CNH proposed a divided on last year’s results of 0.28 euros ($0.32) per share, equal to a total cash payout of around 380 million euros, or $430 million, the company said.
Milan listed shares in CNH Industrial and Iveco both extended losses after results were published. By 1310 GMT CNH shares were down 0.5%, Iveco shares were down 2.5%. ($1 = 0.8766 euros)
(Reporting by Giulio Piovaccari Editing by Keith Weir)
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