Giovedì, 18 Ottobre 2018

Fiat Industrial meets targets, eyes merger with CNH


Turin, April 8 - Fiat Industrial, the holding
company of the non-automotive assets of Fiat SpA, recorded a net
profit of 921 million euros in 2012, up 31% over the previous
year, according to results presented at a shareholders' meeting
on Monday.
Revenue grew by 6.2% to reach 25.8 billion euros while
trading profit was up 23.3% to 2.07 billion euros on the back of
continued strong performance from US agricultural and
construction equipment manufacturer CNH Global NV.
Consequently the company is to pay out a total dividend of
275 million euros, translating into 0.225 euros per ordinary
"In 2012, its second year after splitting from (Fiat) Auto,
Fiat Industrial has met all its targets," said Chairman Sergio
The CEO of automobile manufacturer Fiat SpA on Monday also
confirmed 2013 targets of a 5% increase in revenues, a trading
margin of between 8.3% and 8.5% and net industrial debt of
between 1.1 billion euros and 1.4 billion euros.
Fiat in 2010 spun off Fiat Industrial to hold its
non-automotive activities, which include the production of
trucks, commercial vehicles and buses, under the Iveco marque,
as well as the non-automotive sector of its Powertrain
subsidiary that develops engines and transmissions.
This operation freed Fiat to prepare for a future merger
with Chrysler, that it acquired control of in 2009 with an
initial 20% stake that has since expanded to almost 60%.
The two automakers are expected to merge before the end of
Fiat Industrial became operational on January 1, 2011.
Its main assets are truck and tractor makers Iveco and CNH,
of which it owns around 88%.
CNH is a world leader in the production of farm and
construction equipment that it markets worldwide under the
brands Case and New Holland.
A merger with CNH could be concluded this summer,
Marchionne told shareholders on Monday.
"The merger operation will be subject to the necessary
extraordinary assemblies and it will probably become effective
in the third quarter of this year," said Marchionne.
"The move will bring to a close a long process of
simplification launched over two years ago.
"With the merger Fiat Industrial and CNH will become a
totally integrated, multinational group that is able to compete
in the capital-goods sector at the highest level.
"It will be one of the biggest and strongest groups in the
sector, present in markets throughout the world and finally free
to create its own destiny".
Shares in the new unit will trade in New York, with a
possible secondary listing on the Milan Stock Exchange.
"Fiat Industrial shareholders will receive one NewCo (new
company) share for each Fiat Industrial share held and CNH
minority shareholders will receive 3.828 NewCo shares for each
CNH share held," Marchionne said.
"NewCo will adopt a loyalty voting structure to promote a
stable shareholder base by rewarding long-term share ownership.
"From a strategic viewpoint, we consider this step vital to
the future growth, simplification, autonomy and efficiency of
the Group".

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