Fiat Industrial cut the 2013 sales and profit target as the European crisis made the Iveco vehicle unit report profit loss for the first quarter.
Fiat Industrial said that it now expects revenue this year to increase 4% instead of the previous forecast of 5% and the trading profit margin will rise between 7.5% and 8.3% compared with the earlier prediction of between 8.3% and 8.5%. In March demand for commercial vehicles in Europe fell for the 15th consecutive month and this contraction forced MAN to cut its 2013 forecast. During the first quarter heavy truck sales in the region fell 17% to 64,198 units.
“The news is clearly negative and not discounted,” said Gabriele Gambarova, an analyst at Banca Akros in Milan. “Iveco encountered more difficult market conditions.”
Fiat Industrial said that its EBIT fell 5.3% to 408 million euro in the first quarter from 431 million euro during the same period last year, and failed to reach the analysts’ estimations of 428 million euro. MAN CEO Georg Pachta-Reyhofen said last week he sees no signs of an economic recovery, as the company’s Q1 operating profit fell 78% to 32 million euro.