CNH Industrial NV, the maker of Iveco trucks and New Holland farm tractors, said third-quarter profit fell 11 percent as price competition hurt sales at its commercial-vehicle unit in Europe.
Trading profit, or earnings before interest, taxes and one-time gains or costs, declined to 508 million euros ($694 million) from 570 million euros a year earlier, the Basildon, England-based company said today in a statement. Profit at the truck division slumped 86 percent to 15 million euros.
CNH Industrial’s shares debuted on the New York Stock Exchange and Milan Exchange on Sept. 30 after Chairman Sergio Marchionne completed the merger of Turin, Italy-based Iveco producer Fiat Industrial with its CNH agricultural- and construction-equipment division. Fiat Industrial was spun off from Italian carmaker Fiat SpA in 2011.
The manufacturer said today that it’s sticking to financial targets for this year, including a trading margin of 7.5 percent to 8.3 percent of sales. Revenue in the quarter fell 1.5 percent to 6.2 billion euros, and the margin amounted to 8.2 percent. Exchange-rate shifts and spending on new technology to meet European Union vehicle-emissions rules contributed to the profit decline, CNH Industrial said.
Marchionne has estimated that the companies’ combination, creating a product line that also includes Case bulldozers and FPT ship engines, formed the world’s third-largest capital-goods company. CNH Industrial is based in the U.K. for tax reasons.
Both CNH Industrial and Fiat are controlled by Exor SpA, the investment company of Italy’s Agnelli family. Exor has said it plans to keep voting rights in CNH Industrial in excess of 30 percent.